This report is read as follows:
The actual controller of the company has been changed to the overseas Chinese Town Group, which has a comprehensive layout of the cultural and tourism industry in the western region, and the company will become an integration platform and investment and financing platform for the group to integrate high-quality cultural and tourism resources in the western region.
Events:
The company's controlling shareholder, the West Travel Group, signed an agreement with the overseas Chinese Town Group to transfer about 74.86 million shares of Xi'an Diet to the overseas Chinese Town Group. At the same time, the West Travel Group agreed to authorize the overseas Chinese Town Group to exercise the right to vote, propose proposals and participate in the shareholders' meeting of about 30.14 million shares (6.04%) of the company's shares. If the above agreement is completed, the overseas Chinese Town Group will hold a total of 21.04% of Xi'an Diet, and the actual controller of the company will be changed.
Comments:
With the change of the actual controller, the company ushered in new opportunities for development and maintained its overweight rating. OCW demonstrates its ambition to participate in local mixed reform and layout of cultural brigades. At the same time, as an important listing platform for Xi'an tourism, the company is expected to give full play to the role of investment and financing and resource integration. To maintain the company's 18-year EPS of 0.04 pound in 2017, the corresponding target price is 11.49 yuan.
Overseas Chinese City is once again deeply involved in the mixed reform of local state-owned enterprises, and the scale of business is expected to expand significantly. The overseas Chinese Town Group has successively won the actual control of Qujiang Culture Travel and Xi'an Diet, participating in the reform of local state-owned enterprises for the second time in nearly a year. Prior to this, the overseas Chinese Town Group announced its strategic restructuring with Yunnan World Expo and Yunnan Wentou. Frequent participation in the mixed reform of local state-owned enterprises demonstrates the ambition of the overseas Chinese Town Group to lay out the cultural and tourism industry throughout the country.
Deeply participate in Xi'an tourism market, demonstrate the group's ambition to layout culture and tourism industry. Previously, it signed a strategic cooperation agreement with the people's Government of Xi'an, with a capital contribution of 238 billion yuan, deeply participated in the construction and reorganization of Xi'an cultural industry, and integrated the resources of several local cultural enterprises in Xi'an. ② according to the disclosure of overseas Chinese City and referring to the previous experience of tourism resources integration in Yunnan Province, overseas Chinese Town Group is expected to integrate the high-quality resources of cultural enterprises such as Shaanxi Investment Group and West Film Group in Xi'an, as well as Yunnan Wentou and overseas Chinese Town Cultural Group, with "Zhou, Qin, Han and Tang Culture + Modern internationalized Metropolis" as the main line to implement a series of major projects. To create a large carrier, platform and industry of "culture + tourism + urbanization" to further consolidate its influence in the western region.
The company will become the investment and financing and resource integration platform of overseas Chinese Town Group. ① 's own main business performance is lacklustre, with revenue of only 399 million yuan / + 1.21% in 2016; ② 's controlling shareholder has been changed to Oct Group, and the controller has been changed from Xi'an SASAC to SASAC of the State Council; as a platform of listed companies under Xi'an SASAC, the company will become a platform for investment, financing and high-quality literature and tourism resources integration under Oct.
Risk hint: the progress of mixed reform of local state-owned enterprises is not as expected, and the progress of resource integration is not as expected.