Tibet Naming increased its stake in the company, accounting for 5% of the company's total share capital. The total holdings increased by 1900 shares, accounting for 0.001% of the total share capital, with an average price of 19.87 yuan per share. Before this increase, Tibet Naming held a total of 9.455 million shares of the company, accounting for 4.999% of the total share capital. After this increase, it held a total of 9.456 million shares of the company, accounting for 5%. This increase did not lead to a change in the actual controller. At the same time, Tibet Naming plans to continue to increase its stake in the company by no less than 30 million yuan in the next 12 months.
Tibet Naming Network Technology Co., Ltd. was established in November 2016, with a registered capital of 200 million yuan, mainly engaged in electronic technology development, transfer, Internet technology services (excluding financial, telecommunications, banking extension business). It is a wholly owned subsidiary of Tibet koala Technology Development Co., Ltd., while Lenovo Co., Ltd. is the controlling shareholder of Tibetan koala technology, with a 67% stake. Lenovo Holdings was invested by the Institute of Computing Technology of the Chinese Academy of Sciences in 1984 and listed on the Hong Kong Stock Exchange on June 29, 2015 (HK:
03396), as of December 31, 2016, Lenovo Holdings had a comprehensive turnover of about 307 billion yuan and total assets of about 322.3 billion yuan. Starting from the IT industry, the company has become a leading diversified investment holding company in China, with a unique business model of "strategic investment + financial investment". The main reason for this increase is that Tibet Naming is optimistic about the development potential of tourism in Tibet, and aims to gain investment income through this increase in long-term holdings in the company. Based on the average historical increase price of Naming in Tibet, 30 million yuan corresponds to about 1.6178 million shares of the company, and after the completion of the increase, it will hold a total of 11.0747 million shares of the company, accounting for about 5.9 percent of the total share capital.
Focus on the endogenous construction of scenic spots and in-depth operation in the future. First, the company's income in the first half of the year was 63 million yuan (+ 22.84%), and the return profit decreased compared with the same period last year, mainly due to (1) the entry of Indian pilgrims was blocked due to the closure of the entry channel for tourists in BABA scenic spot; (2) the policy of "two restrictions and one police" was relaxed in the first half of the year, and the negative impact is gradually weakened. Due to the strengthening of the sales policy, the scenic area plate has played a positive role in maintaining the tourist flow in the scenic area, bringing about a certain increase in the reception of tourists, but there is still a certain gap with expectations. Second, the company hotel and scenic spots to achieve joint development, hotel management rights to the scenic area, and the establishment of the Himalayan hotel series, is expected to further improve the hotel management level and management concept, optimize service awareness and level. At the same time, the company's main BABA and Nyingchi scenic spots are popular tourist destinations in the region, supporting facilities need to be improved, there is a large space for in-depth operation, and the increase of major shareholders reflects the firm development of endogenous growth goals in the future. Third, the company has won the Tibet Naming brand and will continue to increase its shares in the future, which on the one hand demonstrates Lenovo Holdings' confidence in the future development of the company, and on the other hand does not rule out the possibility of further capital operation in the future.
Maintain earnings forecasts and maintain "overweight" ratings. The company is a scarce tourism listing platform in Tibet, holding the local core tourism resources. The major shareholders of the company have increased their holdings many times before to demonstrate their determination for future development and are optimistic about the value of long-term investment in the context of large transportation and infrastructure improvement. In addition, the market capitalization of the company is less than 4 billion, and there are certain bottlenecks in the development of the main business in the short term, so we do not rule out the possibility of capital operation in the future. In 17-18, the EPS was 0.032 pound, 0.037 pound and 0.041, maintaining the "overweight" rating.
Risk tips: lower than expected passenger flow, geopolitical risks