HNA Holdings disclosed the restructuring plan to introduce Temasek Fulton investment.
HNA Holdings disclosed the restructuring plan to issue 3.36 billion shares to HNA Group, buying 60.78% shares in HNA Technology, 59.93% shares in HNA Aviation and 100% shares in Tianyu Feixun for 10.478 billion yuan, and buying 29.72% shares in Western Airlines from Tianjin Chuangxin and 60.00% shares in Western Holdings from HNA Southwest headquarters. At the same time, no more than 7.034 billion matching funds will be raised from no more than 10 specific investors, including Temasek Sifton Investment, in non-public offerings. Invest in HNA Technology Tianjin engine maintenance Investment Project, HNA Technology Xi'an accessory maintenance Investment Project, Chongqing Tianyu Aviation training Center project, Shaanxi Changan Tianyu Flight training Center project, Tianyu Flight training Haikou training Center purchase flight training simulator expansion project, Western Airlines Chongqing Jiangbei Airport production Base Phase II Construction Project, Western Airlines purchase 4 aircraft, etc. Among them, Temasek Sifton lock-up period is 36 months, other investors lock-up period is 12 months.
With the replacement of major shareholders, the controlling shareholder will become HNA Group.
Before the completion of this transaction, Grand Xinhua Airlines and its concerted actors held 25.62% of the shares in the company, and the actual control was Hainan SASAC. After the completion of this transaction, HNA Group and its actors will not consider issuing shares to raise supporting funds. HNA Group and its concerted actors will hold 22.17% of the shares of the company, surpassing 21.35% of Grand Xinhua Airlines and its concerted actors to become the largest shareholder and the actual controller of HNA Holdings.
Expand the fleet and strengthen the scale of the main industry, layout, maintenance and maintenance to ensure the development of the main industry
The company's main business is air passenger transport. After buying shares in Western Airlines, Western Airlines will become the company's holding company. The fleet in the table will be expanded, which will significantly reduce competition in the industry. In addition, the main business of SR Technics Switzerland under HNA Technology and HNAAviation is aircraft maintenance, and the main business of Tianyu flight training is flight training. As the upstream aviation industry, the importance of support to the main industry is self-evident. The completion of the transaction will have a positive impact on the company's main business.
The company will continue to benefit from the improvement of industry supply and demand.
The growth rate of the industry fleet slowed down in 2018, constantly tightening and improving the supply and demand pattern, and the fare reform opened the space for price increases in the public business trunk line market, superimposed with a low base in the same period last year. Under the multiple benefits, we believe that the performance of ticket occupancy in the peak season of the industry is likely to exceed market expectations, and in the medium to long term, the growth of industry supply has gradually reached a bottleneck, and with the rapid growth of demand, the relationship between supply and demand is expected to continue to improve, and the upward trend of freight rates will begin. The company is the fourth largest aviation group in China, with considerable moment resources in Beijing, Kunming, Xi'an, Haikou, Sanya and many other first-and second-tier markets, and is expected to continue to benefit from the overall freight rate increase in the industry.
Investment suggestion
On the basis of ignoring the assumption of this IPO and acquisition, the company is expected to have a revenue growth rate of 14.4% and 18.9% in 18-19 years. Taking into account the increase in oil prices compared with the previous report, the profit forecasts for 18 and 19 years are lowered by 7% and 21% respectively, and the estimated return net profit is 3.42 billion and 4.61 billion respectively, an increase of 2.8% and 34.8% respectively over the same period last year. The target price is 3.70 yuan, which corresponds to the PE valuation of 18.5x and 13.7x for EPS from 2018 to 2019.
Risk tips: macroeconomic downturn, sharp fluctuations in oil prices and exchange rates, security accidents, risk of restructuring failure
