Main points of investment
Event: the company announced that the general election of the board of directors and the board of supervisors will be held in advance. After completion, the company will be in a state of no controlling shareholder and actual controller. The company will hold a general meeting of shareholders on January 30.
Comments:
The board of directors is scheduled to change ahead of schedule. The company plans to hold a general election in advance to elect the 10th board of directors, with a total of 11 candidates, including 4 nominees from CICC, 3 from Jiaotong University, 3 from Changjia, and 1 from CICC and Changjia. At present, there are no controlling shareholders with a shareholding ratio of more than 50% or investors who can actually control the voting rights of more than 30% of the shares of the company, so after the completion of the transition, the controlling shareholder and actual controller of the company will be changed from Jiaotong University Industrial Group to no controlling shareholder and actual controller.
The nature of the enterprise is to be changed. After the completion of this general election, the nature of the company is no longer a state-owned holding enterprise, or it will help to improve the long-term management efficiency of the company, and after this change, the company's development strategy is expected to be further clarified. Since 2014, CICC has successively invested in more than ten education brands, including ABC360 (Children's English, Angel Wheel), Blue Pencil (online art learning platform, Angel Wheel), Ona Education (online language training, Angel Wheel), Tree bag teacher (International Curriculum Test), Leen Education (K12 training, round A) and other education brands, and has accumulated deeply in the education industry. In addition, CICC Capital and Minsheng Education, a listed company in Hong Kong, set up a merger and acquisition fund, which plans to raise 10 billion yuan to support private education. The rich educational resources of CICC may contribute to the future development of Onli Education.
CICC is the largest shareholder and it is still possible to increase its holdings. Up to now, CICC holds a 22.68% stake in the company, making it the largest shareholder. According to the announcement of November 18, CICC intends to increase its stake in listed companies by means of centralized bidding transactions, block transactions and agreed transfers in the next six months, accounting for no less than 0.5% of the company's total share capital and no more than 5% of the total share capital. At present, it has completed an increase of 1.50% of its shares, and it is possible to further increase its holdings in the future.
Investment suggestion: the nature of the enterprise is no longer a state-owned holding enterprise, and CICC has become the largest shareholder of the company, which is conducive to the long-term improvement of the company's management efficiency. For the time being, the annual earnings per share in 2018-19-20 was 0. 41%.
53AX 0.63 yuan profit forecast, the current market capitalization of 5.7 billion yuan, corresponding to the valuation of 49x/38x/32x, maintain the "buy" rating.
Risk tips: training network expansion, enrollment is not as expected; the impact of relevant policies of training institutions on the progress of expansion; vocational education, international education, early childhood education business development is not as expected.