Event 1: the company acquired 100% stake in Shanghai Yuyi and Shanghai Haoyi. According to the announcement on the acquisition of 100% equity in Shanghai Yicheng Zhongchuang Space Management Co., Ltd. and Shanghai Haoyi Enterprise Management Co., Ltd on April 26, 2021, on April 23, 2021, the company signed an "equity transfer agreement" with Yicheng Creative. The company acquired 100% equity interest in Shanghai Yicheng Creative for 39.948 million yuan and Shanghai Haoyi held by Yicheng Creative for 28.4 million yuan.
Together, the above two target companies operate 17 property projects through the leasing operation mode, totaling about 84000 square meters. All the projects are located in and along the Central Ring Road in Shanghai, with superior geographical location and good management. The formats of 17 property projects include office, commercial and some apartments.
Event 2: the company acquired a 60% stake in Tongchang Shengye (Beijing) Science and Technology Development Co., Ltd. According to the notice on the acquisition of 60% equity interest in Tongchang Shengye (Beijing) Technology Development Co., Ltd., dated April 26, 2021, the company signed the Equity transfer and Cooperation Agreement with Shanghai tenmu, Beijing Tongchang Shengye Innovation, Technology and Culture Development Co., Ltd., Tongchang Shengye (Beijing) Science and Technology Development Co., Ltd., Tang Yao and Tan Cheng. The company acquired a 60% stake in Tongchang Shengye (Beijing) Science and Technology Development Co., Ltd for 160.17 million yuan.
The target company currently operates two mature projects through two holding subsidiaries and two projects under construction through shareholding subsidiaries. The four projects are all located in the core area of Beijing, with a total rental area of 77000 square meters. The natural person of the original shareholder and the partner promised a total of 263.15 million yuan for the four-year performance target.
We believe that the above acquisition project companies are located in the first-tier urban areas of Shanghai and Beijing, which will help the company to focus on the strategic layout of first-tier cities, expand the company's operating scale, and further consolidate the competitive advantages of core cities. improve the company's sustainable operating ability and profitability.
Investment suggestion: to create China's leading commercial property value chain integrated service provider in the field of urban renewal, with a rating of "better than the big market". While the company continues to cultivate the Shanghai market, vigorously develop the Beijing market, and actively develop the core cities in the Yangtze River Delta and other core provincial capitals, through the flexible use of new project investment, management output, shareholding operation, mergers and acquisitions and other business expansion methods, to seek more development opportunities in the national market.
From a cautious point of view, we do not consider the impact of mergers and acquisitions for the time being, and keep the company's EPS forecast value of 0.41 yuan and 0.49 yuan unchanged from 2021 to 2022. Referring to similar comparable companies and considering that the company belongs to new shares, the company is given a dynamic price-to-earnings ratio of 22-28 times in 2021, and the corresponding reasonable value range is 9.02 yuan to 11.48 yuan, maintaining the "better than the market" investment rating.
Risk hints: the risk of decline in rental rate and rent difference; the risk of excessive concentration in the region; the risk of default of the two acquisition projects and the risk that the project performance falls short of expectations.