Main points of investment:
25 million acquired a 1.695% stake in Star Oriental. Huatian Hotel Group Co., Ltd. plans to invest 25 million yuan in cash through Hunan Huatian Asset Management Co., Ltd., a wholly-owned subsidiary of Hunan Huatian Asset Management Co., Ltd., to increase its stake in Beijing Xingyi Oriental Culture Holding LTD. Technology Service Co., Ltd. (after capital increase). Xingyi Oriental promises to make a net profit of 150 million, 250 million and 350 million yuan from 2015 to 2017. Corresponding to Huatian Hotel net profit increased by 2.5425 million yuan, 4.2375 million yuan, 5.9325 million yuan.
Xingyi Oriental is engaged in film and television culture investment and operation. Star Oriental's main business is film and television cultural investment and operation, including film and television culture, Internet innovation culture, cultural real estate and other sectors, around these three major business sectors, Star Oriental has stored a number of high-quality film and television projects with high expected commercial returns, forming a characteristic business model. The chairman of the company, Gao Xixi, the actual controller, has directed a series of well-known TV dramas such as "New three Kingdoms", "Happy as Flowers", "Sky of History", "New Shanghai Bund" and so on. The company was founded on January 8, 2015. As of December 31, 2015, the unaudited financial data of Xingyi Oriental are: total assets of RMB 441 million, net assets of RMB 112 million and liabilities of RMB 329 million. At present, the registered capital of the company is RMB 85.926 million (paid-in amount).
Implement the light asset layout, sell the Yincheng Huatian Hotel, and take a stake in the film and television culture industry. The 19th meeting of the sixth board of directors of the company examined and approved the "proposal on the sale of assets of Yincheng Huatian Hotel". According to the overall deployment of the company's light asset operation, the company considers the overall layout of the hotel business. It is proposed to sell the assets of Yincheng Huatian Hotel at a price of not less than 120 million yuan, and the intended transferee is Yiyang Chenhui Asset Investment Management Co., Ltd. The income from this asset sale is expected to be no less than 120 million yuan, and the impact on the company's future net profit after deducting income tax is about 10 million yuan. At present, the development prospect of film and television culture industry is good, Star Oriental and its team have strong resources and brand advantages in this field. Through this investment, the company aims to combine the relevant film and television culture with the company's existing hotels and scenic real estate, form a positive interaction between the cultural industry and the company's own assets and resources, and quickly invigorate existing assets. faster and better promote the company's business transformation and upgrading. We maintain our profit forecast of 0.04,0.07 and 0.08 yuan per share in 2015-2017, corresponding to 195,111 and 98 times PE, with a target price of 13.14 yuan per share and a "overweight" rating.