Main points of investment
Event
On the evening of June 22, Aoyuan Mei Valley released a major asset sale plan. It is proposed to transfer its 100% stake in Jinghan Real Estate, 100% stake in Beijing Yangjia and 35% stake in Penglai by publicly listing on the Beijing property Exchange. The reserve price of this public listing transfer is 1.02 billion yuan, and the other party will buy it in cash, and the final transaction price will be determined according to the result of public listing.
Comments:
Real estate business accelerated divestiture, the main business change. Before this transaction, the company's main source of income was real estate development, which generated 1.403 billion yuan in revenue in 2020, accounting for 70.58% of the total revenue. The company's real estate business is mainly implemented by Jinghan Real Estate. By the end of 2020, Jinghan Real Estate holds 1.705 million square meters of land reserve, of which 435 million square meters are planned for development and 12.7 million square meters for development construction. By region:
Tianjin accounted for 44.3%, Baoding 20.1%, Zhangjiajie 12.3%, Yangjiang 12.2%, Chongqing 10.2%. According to the estimates of the evaluation institutions, the net assets of Jinghan Real Estate are valued at 1.999 billion yuan, with an estimated value-added rate of 46.3%. Beijing Yangjia plans to be the main body of management and operation of related pension projects in Tianjin and other regions, with a net asset valuation of-3.6009 million yuan. Penglai plans to provide for the aged as the main body of the operation of the social welfare center in Penglai, with a net asset valuation of 10.3889 million yuan. After this transaction, the company's main business will be changed to medical beauty business and chemical fiber new materials business.
The purchase of real estate assets will help to speed up the strategic transformation of the company. 1) provide financial support. The reserve price of this public listing transfer is 1.02 billion yuan, and the other party will buy it in cash. The company intends to use the recovered funds for the development of the beauty and health industry, repayment of loans and replenishment of working capital. 2) optimize the financial structure. The sale of equity in the underlying company is conducive to optimizing the asset structure and reducing the asset-liability ratio. According to the exam review report, the company's asset-liability ratio will drop from 72 per cent to 53 per cent, and liabilities will fall from 6.8 billion yuan to 2.59 billion yuan. 3) straighten out the structure and avoid competition in the same industry. This transaction will help solve the problem of peer competition between the company and its controlling shareholder, China Olympic Garden, in the real estate development business.
Focus on the development of the medical and beauty industry, the strategic territory gradually landed. 1) the transformation of Meimei is determined, and the management has a strong driving force.
It has been one year since the company completed the change of control on June 24, 2020. Management has been completed with high efficiency and fast pace: brand refurbishment strategy release, management change, acquisition of two hospitals under Liantianmei, signing strategic cooperation with upstream Jiyuan Biology, launching equity incentives, divestiture of real estate business and a series of actions.
2) the capital strength of major shareholders is significant, and in the initial stage of the integration of medical and beauty institutions in the middle reaches, capital is the king. The controlling shareholder of the company is a real estate enterprise with annual sales of more than 150 billion yuan, with a monetary capital of 35 billion yuan. In the initial stage of merger and integration of mid-stream medical institutions, strong financial strength helps the company to form a first-mover advantage. 3) Medical and American strategic planning is clear, passing through uncertainty with certainty. The company adheres to the strategic orientation of "technology, material and service providers of beauty and health industry", makes every effort to build the medical beauty ecology of Aoyuan Meigu, and strives to become the leading brand of domestic beauty and health industry and the ecological integrator of medical beauty.
Investment suggestion: Aoyuan Meigu actively enter the medical and beauty track, through mergers and acquisitions, strategic cooperation, improve the upstream collagen raw materials, mid-stream medical beauty skin care products, downstream medical beauty institutions multi-field layout, lay the foundation for the future to build a perfect medical beauty industry chain. It is suggested to actively pay attention to the follow-up development of the company According to the guidelines of the equity incentive scheme, the company's 22-year net profit of 1870.569 million yuan can reach the exercise condition.
Risk tips: the progress of asset transfer is not as expected, the volatility of operating income is increased, and the policy supervision of the medical and beauty industry is strengthened.