Report guide
The company recently announced that it intends to replace the 75% stake in Fujia Leasing with 51% equity in Yantai Shuchi and 100% equity in Zhongzhi, and acquire 44.42% equity in Yantai Shuchi in cash.
Main points of investment
Asset replacement is from emptiness to reality, and double insurance performance promises enhance certainty.
The company plans to use its 75% stake in Fujia Lease as an asset to exchange assets with Zhongzhi New Energy's 51% stake in Yantai Shu Chi and Zhongzhi's 100% stake. Among them, Yantai Shuchi 100% equity transaction price is 1.04 billion yuan, Zhongzhi 100% equity transaction price is 600 million yuan, Fujia leasing 100% equity transaction price is 1.48 billion yuan, and the transaction difference is 20.4 million yuan. The company will make up for new energy with cash. At the same time, on the basis of the above asset replacement, the company plans to use cash to purchase 44.42% of the shares of Yantai Shuchi held by 46 natural persons such as Yu Zhongguo, with cash payable of 462 million yuan. The remaining 4.58% stake in Yantai Shuchi is held by Yantai Transportation Group (a subsidiary of Yantai SASAC) and is not within the scope of this transaction. Zhongzhi New Energy, Yu Zhongguo and others are natural persons as performance commitment compensation obligors, promising that the net profit of Yantai Shuchi in 2018-2020 will not be less than 160 million, 200 million and 240 million, and the promised performance will be the same as in the previous period. Zhongzhi did not make a performance commitment because it used the asset-based method to evaluate its value. At the same time, in order to ensure that the state subsidies receivable by the target company for new energy vehicles can be recovered in time, after the expiration of the performance commitment period, Zhongzhi New Energy also made a differential advance commitment to the target company's national subsidies receivable for new energy vehicles by the end of the performance commitment period, providing double insurance for performance commitments.
The core competitiveness of the whole industry chain of Xineng vehicle is constructed, and the growth is expected in the future.
We believe that although Fujia Leasing is the main source of profits for the company in 2017 (contributing 90% of the company's net profit) and has exceeded its three-year performance commitment by 18%, with more and more participants in the financial leasing industry, competition has gradually intensified, financial supervision has become more stringent, and future development prospects do not have a strong certainty. At this time, the company actively responds to the national policy calling for breaking away from emptiness to reality, stripping and disposing of financial leasing financial assets with high debt ratio, further improving the upstream and downstream industrial chain of the company's new energy vehicles, and lowering the company's asset-liability ratio. it is beneficial for the company to concentrate superior resources to develop new energy vehicle business, and further consolidate the foundation on the basis of giving full play to the business synergy between various departments. To enhance the company's profitability and core competitiveness, the future development path will be more robust. The target company achieved net profit of 218 million and 232 million from 2016 to 2017, and the target company has strong profitability at the net profit level of 191 million and 208 million, and the statement will bring a sustained and steady profit growth point for the company.
Profit forecast and valuation
The company's original main business where the refrigeration home appliance pipe parts industry has gradually entered the growth bottleneck, so the company actively expand the new energy vehicle business, looking for new profit growth points. If the underlying assets are injected smoothly, the company is expected to achieve a rebound in profitability by strengthening industrial integration. Regardless of the impact of asset replacement, we expect the company's EPS to be 0.25,0.32,0.42 yuan per share from 2018 to 2020, an increase of 34.19%, 31.28% and 31.75% over the same period last year, and the previous share price valuation is 36 times, 28 times and 21 times, maintaining the "overweight" rating.
