The company announced on January 16 that on January 11, Bubugao Group and Xiangtan Industrial Investment signed the "share transfer Agreement" and "Voting waiver Agreement". The Bubugao Group transferred 86.39 million shares (accounting for 10% of the company's total share capital) to Xiangtan Industrial Investment by agreement, with a total transfer price of 518 million yuan, equivalent to 6 yuan per share. BBG will relinquish its voting rights to all its remaining 216 million shares (24.99 per cent of the company's total share capital). After the completion of the change of rights and interests, Xiangtan Industrial Investment will become the controlling shareholder of the listed company, and Xiangtan SASAC will become the actual controller of the listed company.
At the same time, the company issued a performance forecast for 2022, predicting a net loss of 1.3 billion yuan to 1.95 billion yuan in 2022, 184 million yuan in 2021, 1.2 billion yuan to 1.8 billion yuan in 2022 and 444 million yuan in 2021.
Brief comments and investment suggestions.
1. The purpose of share transfer and voting right waiver is to introduce the controlling shareholders of state-owned assets and industrial background, give full play to the resource complementarity and synergy between listed companies and state-owned enterprises, and empower listed companies based on the industrial resource background of state-owned enterprises. promote the strategic development of listed companies. After the completion of the transaction, it will further optimize the corporate governance structure of BBK, improve the efficiency of the company's operation and management, and promote sustained and stable development.
2. The increase in company losses in 2022 is mainly due to the normalization of the epidemic situation, the slow recovery of household consumption, coupled with fierce competition in channels, the internal and external environment of the company is facing greater pressure. Major adjustment of the company's strategy: in addition to shopping malls and department stores, since the fourth quarter of 2022, Jiangxi market has shrunk significantly to Xinyu, Pingxiang and Yichun (cities adjacent to Hunan). Hunan and Guangxi provinces have also closed and turned inefficient loss-making stores. Generally speaking, the closure of the supermarket will result in an one-time loss, including the loss of contract termination, the one-time amortization of the amortized value of long-term amortization expenses such as decoration, the loss of non-transferable net fixed assets, the loss of business termination, the loss of inventory, the expenditure of employee placement compensation, and so on.
We believe that in recent years, under the double impact of the epidemic and channel competition, although the company is under pressure, it has continued the strategy of reducing the burden and throwing off the burden in 2018. After the store is optimized, it will be light, focus on the main business, and the trough will gradually pass; the entry of Xiangtan state-owned assets to enhance the comprehensive strength is expected to optimize the financial situation, strengthen the sustainable management capacity, and help the company seize the opportunity of industry recovery.
Update the profit forecast. It is estimated that the company's income from 2022 to 2024 will be 9.678 billion yuan, 8.863 billion yuan and 9.321 billion yuan respectively, an increase of-27.6%,-8.4% and 5.2% respectively over the same period last year. The net profit of the company will be-1.764 billion yuan, 13 million yuan and 109 million yuan respectively, up-857.9%, 100.7% and 754.5% over the same period last year. Taking into account the company's major strategic adjustment and optimization of business structure, and the proposed promotion of the actual controller into Xiangtan SASAC to enhance the company's comprehensive strength, etc., the company will be given a PS of 0.8 times in 2023, corresponding to a reasonable market capitalization of 7.1 billion yuan and a target price of 8.21 yuan, maintaining a "better than the market" rating.
Risk hints: increased competition in the industry, uncertainty about the progress of reducing losses, and persistent pressure on capital expenditure.
