Event description
Quasi-oil shares announced that they intend to buy 100% stake in China Science and Technology Co., Ltd. in the form of issuing shares and paying cash (consideration 2.4 billion yuan). Among them, 1.2 billion come from issuing shares to purchase assets from Fuzhengqiao and Zheng Shuoguo, shareholders of China Science and Technology Co., Ltd., the issue price is 16.02 yuan per share, and the remaining 1.2 billion is paid in cash.
At the same time, quasi-oil shares plan to raise no more than 2.4 billion yuan from Yingjiu Tongda and Huijin Tian Hengding. 1.2 billion of the matching funds will be used to pay for the cash consideration of the acquisition of China Science and Technology Co., Ltd.; the remaining funds will be used for the express self-service platform and the intelligent renovation project of community letter boxes. After the completion of the transaction, China Science and Technology Co., Ltd. will become a wholly owned subsidiary of the listed company.
Event comment
The acquisition of university terminal express platform, transformation to achieve a breakthrough. Affected by the weak macro-economy and the decline in international oil prices, the performance of the original petrochemical mining technical service business of quasi-oil shares has declined, and the company is actively seeking transformation and upgrading to achieve diversification. Considering that if this plan is approved and implemented smoothly, quasi-oil shares will expand from being a technical service provider of oil and natural gas production to a technology company with two-wheel drive of traditional technical services + intelligent distribution and terminal integrated services. Zhongke Fuchuang focuses on the overall solution implementation service of intelligent distribution system and intelligent integrated service of express logistics terminal, and features the express delivery platform at the end of colleges and universities.
The profit model is becoming clearer and has the basis for replication and expansion. Different from the single express cabinet business model, based on the "nearest neighbor Bao" intelligent express box, Zhongke Fuchuang adopts the business model of "people + shops + cabinets" in universities and communities. And reached a comprehensive business cooperation with the leading campus integrated service O2O platform wheat commune. China Science and Technology Co., Ltd. has been profitable since the second half of 2015. As of May 2016, China Science and Technology Co., Ltd. has stationed on 172 campuses. And signed an agreement with the wheat commune, planning to complete the renovation of the original network of the wheat commune within 2016. Campus expansion contracts have been signed with more than 500 universities, and the number of terminal stores in the logistics service center is expected to reach more than 1500 by 2018. The controlling shareholder promised that the net profit from 2016 to 2018 would not be less than 140 million yuan, 265 million yuan and 365 million yuan respectively.
Coverage for the first time, giving a "overweight" rating. Taking into account the increasingly clear profit model of Zhongke Fuchuang, the future has the basis for rapid replication and expansion, and the performance can be expected. At the same time, relying on universities and communities, the company tries to carry out value-added services such as advertising, e-commerce, finance and other value-added services at the end of the express delivery platform to open the imagination space for the realization of traffic. Assuming the smooth implementation of this transaction, we expect the EPS of the company from 2016 to 2018 to be 0.14,0.42 and 0.63 yuan respectively, corresponding to 155,51 and 34 times of PE, respectively.
Risk tips: pre-plan approval risk, business development risk, the original main business drag on performance