It is expected to benefit from the huge growth space of the sports industry.
Main points of investment:
1. For the first time, it is given a neutral rating, with a target price of 10.40 yuan. It is estimated that the 2019, 2020 and 2021 EPS will be 0.13,0.15 and 0.18 yuan respectively, with a growth rate of 29%, 20% and 15%, respectively. The company is the earliest listed company in China to develop the sports industry, which is involved in all aspects of the sports plate. Large sports has a broad space for development. Once the subsequent asset reorganization is completed, it will greatly enhance the leading position of the industry in the sports industry. Due to the high growth of the sports industry and the benchmark role of the company in the sports industry, the company should enjoy a higher valuation premium than industrial real estate, with a reasonable PE of 80 times and a target price of 10.40 yuan in 2019.
two。 The real estate business is an important part of the company's source of income, which is expected to provide performance support for the company for a considerable period of time. Nearly half of the company's 2018 operating income comes from the real estate business, and the company's real estate business reserves are relatively sufficient. Under the current sales level, it can maintain the company's sales in the next 3-5 years. The real estate business provides solid performance support for the company's transformation and exploration in the direction of sports.
3. The company has an obvious competitive advantage in the sports sector, and is expected to continue to expand this advantage and consolidate its leading position in the future. The company manages and operates brand events, such as marathons, cycling races, etc., which have significant IP value; and actively participate in the market development of large-scale comprehensive games at home and abroad, including the Beijing Winter Olympic Games, CISM World Games's market development have achieved phased results, and maintain a leading share in the domestic sports market development and sports brokerage field.
4. We will actively promote the reorganization of major assets and plan to inject two lottery companies and two certification companies to further enhance the competitiveness of the company in sports lottery services, sports standardization services and certification testing. The company will still actively promote the work of major asset restructuring, if the restructuring can proceed smoothly, it will help to extend the industrial chain of listed companies and increase profitability.
5. Risk hint: the progress of asset restructuring is lower than expected.
