Main points of investment
Events: the board of directors of the company examined and passed the "motion on electing the chairman of the seventh board of directors", "the bill on the appointment of the general manager", "the bill on the appointment of deputy general manager" and "the bill on the appointment of the secretary of the board of directors".
Comments:
Executive changes may bring about positive changes. The company appointed Mr. Xu Wenzhi, the former general manager, as chairman of the seventh board of directors, and Luo Xiaoxi as the general manager and secretary of the board of directors. Previously, the chairman of the company was Huang Hui, the actual controller, and this time the chairman was changed to a professional manager, highlighting his determination to change in operation and management. Luo Xiaoxi, the new general manager and secretary, has successively served as financial analyst, secretary to the board of directors and vice president of Guoxin Securities Co., Ltd., Shenzhen Longke Technology Co., Ltd., Shenzhen Aishi Co., Ltd., and has rich experience in capital markets.
The decline in the company's 17 years and 18Q1 performance is mainly due to a sharp decline in settlement income from real estate projects, which is expected to see performance growth in 1920. In 2017, the company's performance declined sharply due to the impact of real estate regulation and the slow progress of the Yanjiao project of environmental protection inspectors around Beijing. In 2017, the company only partially handed over income and profits from projects such as Sanxiang four Seasons Flower City Mudanyuan (Shanghai Songjiang) and Sanxianghai Shangyun Mansion (Shanghai Chongming). In addition, Guilin Guanwei Wenhua bankruptcy restructuring of Guangxi Wenhua Art held by the company, which had previously invested in Guangxi Wenhua Art, provided for asset impairment losses, resulting in a sharp decline in 2017 performance. The Q1 loss in 2018 was also due to a significant decline in income from real estate projects; the current saleable and unsettled areas are all located in the Shanghai area, and the Zhangjiang project opened in April this year, and the projects under construction are located in Pudong, Pudong, Hebei and Hangzhou. High-quality real estate reserve projects ensure stable contribution to future performance, and the company's real estate business performance is expected to achieve rapid growth in 18. 19.
With the impression of holding the core IP, the layout has been significantly accelerated since M & A. Viewing impression is the creator of domestic live performances and situational experience dramas, and its main income comes from the creation and maintenance of performance projects, the sharing of performance ticketing revenue, shareholders' rights and interests, and so on. It has successfully built four high-end brands of literature and tourism performing arts: "most memory", "impression", "see again" and "return". In 17 years, 2 projects have been performed (Zhiyin number, Hangzhou is the most memorable), 2 "impression" brand series projects have been signed (Kunming, Yunnan and Jiaozuo, Henan), 4 projects are expected to be performed in 18 years (also see Malacca, return to the three Gorges, most recall Shaoshanchong, return to Zunyi long March Road), 2-3 projects have been signed, the expansion speed of new projects has been significantly accelerated, and 7 projects have been completed in the 12 years before acquisition. Four years after the acquisition, the number of new public performance projects is expected to reach 9. The annual revenue of 1616.17 was 218 million yuan and 351 million yuan respectively, an increase of 15.89% and 61.41% over the same period last year, and the net profit was 127 million yuan and 134 million yuan, an increase of 26.91% and 5.24% respectively.
Profit forecast and investment rating: the real estate business is currently ploughing the Yangtze River Delta and Beijing-Tianjin wings, with high-quality land reserves and low land acquisition costs, providing the company with a margin of safety; at the same time, after entering the capital market, it is expected that the management mechanism and market-oriented operation will be improved, and the new projects will be significantly accelerated after the acquisition, and the follow-up combination of importance and coordination with real estate business is worth looking forward to. The change of senior management is expected to bring about changes in operation and management, which is worth paying attention to. It is estimated that the EPS in 18-20 years will be 0.260.31 EPS respectively, and the estimated PE on May 6 will be times that of 18-15-12, maintaining a "prudent overweight" rating.
Risk hints: business synergy is not as expected, changes in senior executives are not as expected, cultural tourism expansion is not as expected, and systemic risks in the real estate cultural industry.