Main points of investment
Events:
On December 9, the company plans to transfer 31.43% of its equity to Tianjin Ruiting, with a total transfer price of RMB 255 million, with an estimated investment income of 51 million yuan, accounting for 62.24% of the company's audited net profit in 2019.
On December 9, the company's wholly-owned subsidiary World Union small loan plans to transfer its credit assets of 799.6847 million yuan to Zhuoqun Chuangzhan, with a total transfer price of 806.3079 million yuan. This transaction is a buyout transaction, and Zhuoqun Chuangzhan will bear the credit assets and all rights, interests and risks attached to them from the delivery date of the credit assets.
Comments:
Part of the small loan assets will be stripped off and the existing assets will be revitalized by light loading. The company's wholly-owned subsidiary World Union small loan plans to transfer its credit assets of 799.6847 million yuan to Zhuoqun Chuangzhan, with a total transfer price of 806.3079 million yuan. Zhuoqun, the transferee, is one of the top 10 shareholders of the World Bank, with a 3.77% stake in the World Bank, but is a non-related party.
This transfer is a buyout transaction without any guarantee, repurchase liability or obligation. Zhuoqun Chuangzhang will bear the credit assets and all rights, interests and risks attached to it after the completion of the transaction. This transaction provides the company with cash inflows, which is conducive to invigorating the existing assets, reducing the debt ratio, maintaining good liquidity of assets and focusing on the development of the main business.
Transfer more win shares in Shanghai, continue to transform and focus on superior business. The company and Tongze plan to transfer all their shares in Shanghai Gengsheng to Tianjin Ruiting (a total registered capital of 357 million yuan, accounting for 55.00% of the total registered capital of Shanghai Gengsheng). Among them, the company plans to transfer its 31.43% stake in Shanghai to Tianjin Ruiting at a transfer price of 255 million yuan, resulting in an investment income of 51 million yuan, accounting for 62.24% of the company's net profit in 2019. Shanghai has won the main distribution channel business, building a new housing co-sale platform, connecting second-hand brokers, service developers and home buyers, with a revenue of 1.292 billion yuan and a net loss of 172 million yuan in the first three quarters of 2020. This equity transfer will help the company to further focus on superior business and give full play to the company's expertise and in-depth service developers, which is in line with the strategic direction of the company's "big transaction + big asset management" dual-core coordinated development.
Investment advice: the company actively invigorates the existing assets, focusing on the continuous transformation of core business, "big deal + big asset management"
Clear positioning of the main business, backed by Dahengqin Group resources, "state-owned platform + listing platform" obvious advantages. We estimate that the company's EPS in 2020 and 2021 will be 0.05yuan and 0.07yuan respectively. According to the closing price on December 8, the PE will be 104x and 80x respectively, maintaining a "buy" rating.
Risk hint: trading services business continues to decline, light asset transformation is too slow