Investment logic
Local leading thermal enterprises, the layout of the financial and securities industry. Harbin Investment Co., Ltd. is an important urban heating enterprise in Heilongjiang Province. with the continuous increase in environmental protection costs and other reasons, the profits of the company and its subsidiaries have declined significantly in the past three years. After the acquisition of Jianghai Securities as a wholly-owned subsidiary of the company, the company will formally set foot in the layout of the financial industry, and the revenue channels will be greatly expanded.
Supporting financing will greatly enhance the capital strength of Jianghai Securities and open up the space for future business development. Jianghai Securities is a local securities firm in Heilongjiang Province, and its main business performance is better than the capital ranking. in 2015, Jianghai Securities ranked 66th and 60th in total assets and net assets; the net income of agency securities trading and securities investment ranked 54th and 62nd, and the net income of asset management business ranked 38th. After this listing, the company will receive 5 billion capital supplement, capital strength will be greatly enhanced, opening up the space for business development.
To build a diversified investment holding group, Harbin Investment Co., Ltd. has sprung up. After this transaction, Jianghai Securities has become a wholly-owned subsidiary of the company. through supporting financing, the company will greatly enhance the capital strength of Jianghai Securities, and the securities business will provide an important profit contribution for the company in the future. will continue to layout insurance, investment, trust and other financial sectors to enhance the strength of the financial sector. Through the development of both endogenesis and extension, the company will become a diversified investment holding group.
Harbin Investment Group, a major shareholder, promised to lock in shares and compensation for impairment. Harbin Investment Group promised to participate in the restructuring of the shares lock-up period of 3 years, within 6 months after the completion of the restructuring of the company's shares for 20 consecutive trading days or 6 months, the closing price is lower than the issue price, Harbin Investment Group will automatically extend the lock-up period for 6 months. At the same time, Harbin Investment Group has promised to compensate Harbin Investment Group for the impairment of Harbin shares if the value of the underlying assets in each fiscal year is lower than the transaction price within three years after the completion of the restructuring.
Investment suggestion
The strategic goal of the company is to create a diversified investment holding group, and the wholly-owned acquisition of Jianghai Securities is an important step in the layout of the financial industry. 5 billion matching financing will greatly enhance the capital strength and business contribution of Jianghai Securities. We expect that after the completion of financing, the reasonable market capitalization of the company is about 29 billion yuan, the corresponding stock price is 13.80 yuan per share, and the EPS in 20162017 is 0.42 yuan 0.45 yuan, giving a "buy" rating for the first time.
Risk.
Business integration risk; market cycle fluctuation risk.