Event
The company issued an announcement in early trading: the company indirectly holds 20.11 million shares of Qudian Inc, accounting for 6.09% of Qudian Inc's equity after the offering.
Comment
On the day of the listing, Qudian Inc's share price reached US $28.18 per share, up 21.58%, corresponding to a market capitalization of US $9.63 billion. According to the 6.09% equity estimate, Qudian Inc corresponding to contact interactive listed company market capitalization of about 3.9 billion yuan. In addition, the company holds a 5 per cent stake in Razer (valued at about 30 billion) and a 55.7 per cent stake in New Egg (about 10.2 billion based on the 2016 1.2x PUnip S), together with Qudian Inc's 6 per cent stake, the three assets are expected to be valued at more than 15.5 billion.
The company expects to complete the acquisition of the remaining 37.8% stake in the new egg by the end of the year, when it will hold a total of 93.5% of the new egg, which is expected to further increase its equity value. At the same time, the company will look for a house in the 1H17 acquisition, and cut into the Internet financial services market with the rental business by stages, forming a comprehensive financial platform such as factoring, financial leasing and Internet small loans, which is expected to improve profits through Internet finance. In addition, the company's acquisition of a win-win stake in advertising company Dian has been completed, with a total shareholding of 49%. The non-return net profit of Dian win-win 1721 is 204 million, 245 million, 294 million, 300 million and 300 million respectively, which is expected to further enhance the performance of listed companies.
We maintain our 2018 net profit forecasts of 246 million yuan and 309 million yuan, up-30.4% and 25.6% respectively from a year earlier. At present, the market capitalization of listed companies is about 20 billion. Without taking into account factors such as the acquisition of the remaining equity of New Egg and the development of new business, if you deduct the current equity value of Razer, New Egg and Qudian Inc, the current price-to-earnings ratio of the main business in 2017 is only 20 times, which has been undervalued and recommended.
Risk
The performance of finding a house will be lower than expected, and the acquisition of the remaining shares of New Egg will be lower than expected.