Main points of investment
Event: on November 13, the company issued an announcement on the signing of the asset management entrustment service framework agreement and daily related transactions with Dahengqin Group, and the World Bank intends to carry out asset management services in Hengqin New area on DaHengqin entrustment matters. it is estimated that the transaction amount will not exceed 580 million yuan in the next three years.
On November 13, the company issued a notice on signing the "Strategic Cooperation Framework Agreement" with Zhuhai Gree Electric Appliance Co., Ltd., the two sides carried out extensive and in-depth cooperation within their respective business scope, shared industry resources and complemented each other.
On November 13, World Union small loan, a wholly owned subsidiary of the company, plans to transfer loan creditor's rights assets to Yunnan Trust. The initial transfer of credit assets shall not exceed RMB 145 million yuan and the term shall not exceed 60 months (whichever is actual). The company will undertake an estimated guarantee liability of no more than RMB 160 million for the World Union small loan.
Comments:
The resources of major shareholders are blessed, and the large asset management business is expected to take off. According to the agreement, the company will provide asset management services such as urban operation services, enterprise landing services and property management services for various forms of business held or under the jurisdiction of Dahengqin. It is estimated that the transaction amount in the next three years will not exceed 580 million yuan (no more than 160 million yuan in the first year, 180 million yuan in the second year, and 240 million yuan in the third year). This framework agreement reflects that the high-quality resources of major shareholders are beginning to tilt towards listed companies, and the company's large asset management business is expected to take off.
Join hands with Gree Electric Appliances, the advantages complement each other to help the growth. According to the agreement, Gree Electric Appliances will give priority to purchasing consultancy services such as property management and marketing planning of the World Bank in the self-built and under construction industrial park base, while the World Bank will give priority to recommending or centralizing the procurement of Gree electrical products in the new house transaction, asset management and other scenarios. The integration of high-quality resources in this cross-border cooperation will help both sides to achieve win-win results. On the one hand, Gree has access to high-quality product promotion channels; on the other hand, the World Bank's capital management and consultant planning business has achieved flow, and the company's various businesses have achieved coordinated development.
Transfer credit assets and speed up the return of funds. The wholly-owned subsidiary of the company, World Union small loan, plans to transfer the loan creditor's rights assets to the Yunnan Trust, the initial transfer amount shall not exceed 145 million yuan, and the trust term shall not exceed 60 months. This transaction is conducive to the recovery of funds and is conducive to the further business development of World Federation small loans.
Investment suggestion: Dahengqin high-quality resources continue to fall to the ground, and the growth of the company's asset management business is enhanced. The company's existing business constitutes a security boundary, and its performance is supported. We estimate that the EPS of the World Bank in 2020 and 2021 will be 0.05yuan and 0.07yuan respectively. According to the closing price on November 13, the PE will be 125x and 89x respectively, maintaining the "buy" rating.
Risk hint: the landing of DaHengqin resources is not as expected, and the recovery of trading service business is slow.