Peace viewpoint:
Yongda Automobile plans to borrow new materials from Yangzi and add high-quality dealers to its A shares. After the completion of the transaction, all assets and liabilities of Yangzi Xincai were purchased, 100% equity of Yongda Automobile Group was invested, the main business of listed companies was changed to passenger car distribution and integrated services, and A shares were added with high-quality dealers.
Focus on luxury brands and share the high-speed development dividend of the luxury car market. In recent years, the overall growth rate of passenger car sales in China has moved down to single digits, but the luxury car market still maintains a high growth rate of more than double digits. Yongda distribution network radiates the country with East China as the center, with luxury and ultra-luxury brands accounting for more than 80% of revenue, focusing on luxury and ultra-luxury brands, and will share the dividend of upgrading China's automobile consumption structure.
Based on the channel advantage, the post-market business has entered a period of rapid development. The number of steady-state cars in China is expected to be twice that of the United States, and it will be the largest automobile aftermarket in the world in the future. China's dealers after the market Nuggets has a broad space, the market capitalization of hundreds of billions of leading enterprises will inevitably appear in the future. Dealers are natural offline strong, with experience, personnel, channels, products, scale and other advantages, will most likely become the most competitive players in the post-market field. At present, the gross profit of Yongda automobile aftermarket business accounts for 71%, and after-sale maintenance and agency services are cash cow business. Financial leasing and used car industries will face huge market space in the future. Yongda's financial leasing and used car business is expected to become a high-growth star business in the future.
Grasp the golden period of mergers and acquisitions to become bigger and stronger quickly. The maturity of the automobile consumer market will inevitably lead to the merger and integration of dealers. China's auto market has changed from a high growth stage to a single-digit growth stage, and the profit margin of new car sales of dealers has declined year by year, giving rise to mergers and acquisitions in the industry, and high-quality dealers with strong financial strength to seize the opportunity to become bigger and stronger quickly. Yongda acquired Jiangsu Baozun and further strengthened its market position in Jiangsu.
After Yongda landed in the A-share market through backdoor, it will continue to vigorously implement mergers and acquisitions in order to become bigger and stronger.
Profit forecast and investment advice: Yongda Automobile focuses on selling luxury and ultra-luxury brands, sharing the opportunity of consumption upgrading in China's auto market; actively developing the post-market, financial leasing and used car business has great potential for growth; seize the industry downturn and actively integrate mergers and acquisitions to become bigger and stronger. It is estimated that the company's net return to mother in 2016-2018 is 8.7 trillion, which is calculated on the basis of 1.548 billion shares of capital after the completion of the transaction (excluding supporting financing). The corresponding EPS is 0.56 euro 0.67 prime 0.82 yuan. Cover for the first time and give a "recommended" rating.
Risk tips: backdoor listing failed; luxury car market is in the doldrums; financial leasing / used car development is not as expected.
