Main points:
Event: red Sun Performing Arts, a participating subsidiary, invests a 51% stake in Xintian Han Culture.
The company announced last night that Hunan Red Sun Performing Arts Company, a subsidiary of Hunan Red Sun Performing Arts Company, used Haiyin shares to increase its capital by 38.76 million yuan to invest in Chenzhou Xintian Han Culture Co., Ltd. After completion, Red Sun Performing Arts held a 51% stake in the target company.
Xintian Han Culture Company, the target company, is a cultural performing arts company with core competitiveness in southern Hunan, including the surrounding Guangdong, Jiangxi and Guangxi regions. The company is supported by the government and is the first choice for cultivating enterprises in the local cultural industry demonstration base.
The original shareholders of the underlying company promised that the net profit of 15-17 years would be no less than 9.5 million yuan, 10.45 million yuan and 11.495 million yuan respectively, and this acquisition corresponds to eight times the PE in 2015.
General logic: the transformation has a strong executive power, embracing the Internet to create a "business + entertainment + finance" Haiyin ecosystem.
The company is the leader in the operation of multi-format commercial properties in South China, with 16 commercial properties including theme shopping malls, shopping malls and wholesale markets, as well as an urban complex, "another City of Panyu".
Its commercial property operation and real estate business accounted for 78% and 22% of the operating income respectively, and the gross profit accounted for 76.7% and 23.3%, respectively.
We believe that the company's main business is stable and there is a possibility of performance improvement. I will not repeat it here. The optimistic logic is mainly transformation: 1. After the company issued the outline of transformation in August last year, it has carried out kaolin business divestiture and other actions to straighten out the main business. Rich in cash and strong execution, it has made an active layout in the fields of finance and entertainment, and will continue to transform into a "family leisure and entertainment center operator" through epitaxial mergers and acquisitions in the future. 2. Actively embrace the Internet and carry out "Internet +"
The transformation, through the online and offline layout to help create a "business + entertainment + finance" marine ecological circle.
Entertainment: the urban performing arts industry has a broad space and is optimistic about the company's ability to integrate and expand.
In September last year, the company invested 30 million to buy a 14% stake in Phantom Entertainment, the first step in the transformation. In November, it announced the acquisition of a 38.3% stake in Hunan Red Sun Performing Arts, which is involved in the urban performing arts field with high net interest rate, light assets and large space.
The acquisition of Xintian Han Culture, vertically, will cover artist brokerage, performance planning, performance production, performance brokerage, theater operation, ticket sales and audience services, opening up the whole industry chain of urban performing arts; horizontally, it will be involved in IP derivatives consumption, tourism services, performing arts copyright, performance exhibitions and other performing arts derivative industries to achieve a diversified performing arts business model.
This acquisition reflects the strong executive power of the company and fulfills the company's vision of integrating the urban performing arts industry in the early stage. We believe that the urban performing arts industry has a space of about 45 billion yuan, and the net interest rate is as high as 40%. The prospect is considerable. In the future, it will continue to integrate the national urban performing arts alliance, bring together the advantages of various companies, and form a pattern of coordinated operation of several theatres and unified deployment of actors, which will cover more than 10 first-tier cities across the country and develop into "Oriental Broadway."
Finance: acquirers pay to create Internet finance.
The company has actively laid out the financial sector, the company has set up a 1.5 billion yuan strategic transformation investment fund to find and acquire high-quality transformation projects; then invested in Shanghai Qinpu Fund to enrich the resources of transformation mergers and acquisitions; and set up China Post Consumer Finance Company. explore supply chain finance and expand profit space.
In February this year, the company paid 175 million yuan for a 51% stake in the acquisition company Lianlian, and plans to acquire the remaining stake by the end of 2018. Relying on the cooperative relationship between Commercial Alliance and UnionPay, Industrial and Peasant Construction Bank, more than 30, 000 merchants and merchant e-Bao, M-POS and other products, we can cut into the payment, credit and financial needs of merchants and consumers, and develop Internet financial business in the professional market.
O2O layout to open up the coordinated development of commerce, entertainment and finance.
The company actively carries out O2O layout, and has achieved wifi coverage of all stores and electronic membership. Haiyin Life Circle cooperates with airlines, banks and operators to enhance consumer user experience.
On the one hand, commercial and financial cooperation, in the future or gradually through the Union of Merchants through O2O payment, unified cashier to establish a complete closed loop. The company can give information to merchants and consumers to promote Internet financial business; it can also use interconnected payment to collect data, personal information and dynamic charts for big data's analysis and accurate marketing.
On the other hand, the company's business and entertainment work together, business provides scenes, provides carriers, and entertainment introduces traffic to increase stickiness. At the same time, the announcement said that in the future, the company will make full use of the offline resources of the national performing arts platform, and at the same time look for online performing arts resources on the Internet, open up the O2O performing arts interactive industry chain, further embrace the Internet, and open up commerce, entertainment and finance.
Profit forecast and rating
It is estimated that the fully diluted EPS of the company in 14-16 years is 0.4,0.45,0.51 yuan respectively, and the PE of the previous share price is 37 times, 33 times, 29 times, giving a "buy" rating.
Risk hint
The confirmation of real estate is uncertain; the performance of the main business is not as expected; the progress and effect of the transformation are not as expected.