Event
1. The company's wholly-owned subsidiary World Union small loan transfers credit assets to a single capital trust (Yunlian No. 16), the initial transfer of credit assets shall not exceed RMB 145 million (subject to the actual agreement); 2. The company signed the Strategic Cooperation Framework Agreement with Zhuhai Gree Electric Appliance Co., Ltd. The company signed a framework agreement on asset management entrusted service with Zhuhai Da Hengqin Group Co., Ltd.
Core viewpoints
DaHengqin resource blessing logic continues to be realized, and the property management business is expected to enter the fast lane of development.
The company signed a "strategic cooperation framework agreement" with Gree Electric Appliances. Gree will give priority to purchasing the company's property management, marketing planning and other consulting services in its self-built manufacturing base, proposed and under construction of industrial parks, and corporate headquarters. The company gives priority to recommending or centrally purchasing air conditioners and other products produced by Gree through new housing marketing scenarios, new housing transaction channel platforms, and full-chain asset management service scenarios. This cooperation has achieved a win-win situation for both sides. The company has expanded property management services and consulting services, while Gree has gained sales channels for high-quality products. The company signed the "Asset Management entrustment Service Framework Agreement" with Dahengqin, entrusting the World Bank to provide all kinds of asset management services for all kinds of formats, projects and municipal services held or under the jurisdiction of DaHengqin.
It is estimated that the transaction value in the next three years will not exceed 580 million yuan, and the transaction value in three years will not exceed 1.6,1.8 and 240 million yuan respectively. We believe that the landing of these two framework agreements has brought the company property management and service resources that were difficult to reach in the past, and has formed a strong boost to the business development. The logic of the resource blessing benefits that DaHengqin brings to the company continues to be verified. It is expected that in the future, with the support of DaHengqin, the company's property management business will accelerate development.
Actively invigorate the existing assets, and the World Bank continues to improve quality and efficiency. The World Union small loan transfers credit assets to a single fund trust (Yunlian No. 16), the initial transfer amount shall not exceed 145 million yuan, and the trust period shall not exceed 60 months. The World Union small loan undertakes the obligation to make up the difference between the gold and the expected income, and the company guarantees its commitment obligation. In essence, it is up to the company to cover the bottom of the transaction to ensure that the principal and expected income of the trust beneficiaries are realized. This transaction will help to speed up the withdrawal of cash and improve the efficiency of the use of funds, and the recovered funds will be used for the further development of World Federation small loans. As Yunnan Trust intends to entrust the World Union small loan as the asset service institution of this trust, the World Union small loan is also expected to obtain part of the service fee income in the future. We believe that this transaction reflects that the company began to actively invigorate its assets and tap the operating potential of the company after Dahengqin entered the company. Changes in ownership structure and management began to bring positive changes to the company's operation, and the ownership of high-quality state-owned assets brought governance improvement to the company gradually.
Maintain the buy rating. Considering the improvement in asset management and operating business, we predict that the company's EPS will be 0.05 soybean 0.06 yuan in 2020-2022.
Risk hint: the decline of trading services is higher than expected; the development of property management is lower than expected.