In March 2009, Zhongcheng Group was merged into CDC as a wholly-owned subsidiary. After the completion of the free transfer of equity, the State Development Investment Corporation has become the actual controller of Zhongcheng shares (000151).
On January 29, 2010, Zhongcheng (000151) and McGonagall Industries of Canada signed the Framework for the Development of the Mongo Potash Project in the Republic of the Congo (Brazzaville). According to the framework agreement, the company (000151) undertakes the financing required to complete the EPC of the project, which is expected to not exceed US $1.2 billion. The framework points out that the future cooperation covers the principles that should be followed in several important parts, such as EPC general contract, financing agreement, product compensation and sharing agreement and project equity acquisition option, in which Zhongcheng shares (000151) are given 50% common stock options.
The national investment background of Guokai and the rich resources held at home, the journey of Zhongcheng Group sharing the same fate with the Republic, the strong domestic industry integration carried out by the rising powers and the global acquisition of resources, the profound implications of the two events triggered us to rethink the strategic positioning and corporate value of Zhongcheng (000151).
Guokai invests in potash, which comes from the largest potash mine in the country, and where it goes affects the nerves of the capital market all the time. With the deepening of China's enterprise reform, the implementation of the global resources strategy, the transfer of shares in Zhongcheng Group, the transformation of Zhongcheng shares (000151), a series of events point to the ultimate ownership of Luo potassium: the injection of Zhongcheng shares (000151) to achieve resource concentration and coordination.
This paper analyzes the new orientation and new value of Zhongcheng shares (000151) from macro to micro perspectives. Finally, we gave Zhongcheng shares (000151) a new target price of 25 yuan per share for six months.