Event: the controlling shareholder of the company, Xinju Investment, signed a "share transfer Agreement" with Sichuan Development on April 12, 2018, agreeing that it would transfer its 104572204 shares of the company to Sichuan Development, accounting for 16% of the company's total share capital at that time. On August 7, the transfer registration procedures for the transfer of shares under the above agreement have been completed. At the same time, Huang Zhiming, the actual controller of the company, resigned as chairman of the company, and Feng Kemin, vice chairman, took the place of chairman of the board.
Sichuan Development officially enters the management: in accordance with the share transfer Agreement signed on April 12, Sichuan Development has the right to nominate four candidates for non-independent directors and two candidates for independent directors and two candidates for shareholders' supervisors to the company. propose a non-independent director as chairman. The original shareholders of the company retain the right to nominate the general manager, while Sichuan Development has the right to recommend candidates for financial director. According to the company's recent announcement, chairman Huang Zhiming, directors du Xiaofeng and Zhou Siwei, chairman of the board of supervisors Wang Bin, supervisor Zhang Yulan and deputy general manager Heng fuming have all resigned from their original positions.
Since then, Sichuan Development will formally enter the management of the company, grasp the actual decision-making power of the company, continue to support the company in the development of rail transit business, seize the commanding heights of the development of the new rail transit industry, and start with the new generation of medium-and low-speed maglev system. Create an internationally competitive and cost-effective multi-standard product chain to achieve full coverage of the urban rail transit market. Make use of the company's superior resources to gain a foothold in Sichuan and radiate the whole country.
The nature of state-owned enterprises is endorsed, based on the provincial holding platform at the core of Sichuan: Sichuan Development is a wholly state-owned company funded by the Sichuan provincial government and the only state-owned capital operation company in the province. In 2017, the total assets have reached 906.1 billion yuan. It owns Sichuan Railway Investment (wholly-owned), Sichuan Exchange (wholly-owned), Sichuan Neng Investment (holding) and other companies. It is also the controlling party of Sichuan Financial Control, Sichuan Airlines, Sichuan Mining and other companies, and is the core provincial holding platform in Sichuan. At the same time, the company's domestic credit rating is AAA (China Integrity rating), international rating A-(Fitch), with excellent asset operation ability.
Take the medium and low speed maglev technology as the starting point, comprehensively develop the rail transit business: the company always adheres to the principle of "concentric and diversified development". In 2011, through the introduction of relevant technologies through joint ventures, we officially entered the tram industry, and in 2015, we acquired the supercapacitor leader Aowei Technology, actively expanding the cutting-edge fields of supercapacitor technology development and promoting industrial applications. In 2016, we began to actively divest the original traditional business and gradually expand the product business field and industrial chain. At the end of 2017, the company signed a new generation of medium and low speed maglev exclusive cooperation agreement with Germany's Berger, laying out in advance the mainstream direction of the future development of urban rail transit and seizing the commanding height of the development of the new generation of medium and low speed maglev industry in the world.
Profit forecast and investment advice: due to the completion of the formal transfer of ownership by the actual controller of the company, the company has officially entered a new period, and the business of the company is progressing well. The company is expected to have revenues of 2.74 billion, 4.15 billion, 6.85 billion and 7.45 billion in 2018-2021, and net profit of 102 million, 203 million, 404 million and 512 million, maintaining the buy rating.
Risk tips: rail transit business is not as expected, market competition is intensified, and so on.