This report is read as follows:
In order to promote the development of the company's private equity business, the company participates in investing in harmonious green industry funds, with a target contribution of 7.5 billion and a follow-up investment of 1 billion, which is expected to increase annual management fee income by 150 million.
Events:
On November 13, 2022, the company announced that it intends to participate in the harmonious Green Industry Fund, with a total target contribution of 7.5 billion. Sichuan Shuangma shareholding subsidiary serves as GP and manager.
Comments:
In order to further promote the development of the company's private equity business and enhance the company's profitability, the company intends to participate in investing in harmonious green industry funds. According to the Sichuan Shuangma announcement, in order to continuously improve the profitability of listed companies, select high-quality real economic enterprises for investment and management, and constantly cultivate new growth points for the business of listed companies, the company intends to invest in Yibin harmonious green industry development equity investment partnership (limited partnership) (hereinafter referred to as "harmonious green industry fund").
The total subscription amount of the fund is 7.5 billion, and the total investment of Sichuan Shuangma subsidiaries is 1 billion yuan. After the company participated in the investment, the harmonious green industry fund GP subscribed 225 million yuan for Tibet Jinkun, and Sichuan Shuangma added 52 million yuan of registered capital to Tibet Jinkun, becoming a shareholder holding 50% equity in Tibet Jinkun. LP is Yibin Venture Capital and Tibet Jinxu, of which Yibin Venture Capital (the actual controller is Yibin City SASAC) subscribed 2.25 billion yuan, Tibet Jinxu (Sichuan Shuangma wholly-owned subsidiary) subscribed 775 million, the current fund subscribed a total of 3.25 billion, of which Sichuan Shuangma subsidiaries totaled 1 billion yuan, with a total target subscription of 7.5 billion yuan. The fund manager is Jinhe in Tibet, and Jinhe in Tibet is a wholly owned subsidiary of Sichuan Shuangma. The harmonious Green Industry Fund focuses on the core areas of intelligent manufacturing, semiconductors, clean energy and technology, consumption and services, with high certainty of growth, large market space and industrial resources.
The landing of the new fund is expected to promote the growth of the company's profits. it is expected that more new funds will land in the future, which is optimistic about the long-term development of the company. The total subscription amount of the new fund is 7.5 billion. Tibet Jinhe, a wholly owned subsidiary of Sichuan Shuangma, is the fund manager. It is expected that the fund will increase the company's management fee income by 150 million every year, bringing about the company's profit growth. At the same time, the management fee income will not be affected by the rate of return on investment, which is conducive to the improvement of the company's profit certainty. The company holds a 50% stake in GP Tibet Jinkun, so the performance reward is included in the company's performance according to 10%. In addition, the company invests 1 billion yuan, which is expected to increase the investment income in the future. Considering the strong investment ability of the company, it is expected that more new funds will be landed in the future, which is optimistic about the long-term development of the company.
Investment suggestion: the landing of the new fund is expected to promote the company's profit growth, be optimistic about the company's long-term development, and maintain the forecast of annual return net profit of 15.25 to 2.037 billion yuan in 22-23-24, corresponding to 2.07 billion yuan for EPS. Maintain the "overweight" rating and maintain the target price of 33.16 yuan, corresponding to 22 years of 17xP/E.
Risk hints: large fluctuations in the capital market; deterioration of the equity investment environment.
