Main points of investment:
Event: the company announced the third quarter report of the year 17.
The successful acquisition of Shenzhen Yunfang has greatly increased the scale of its assets. According to the announcement of the company's three quarterly reports, the company has completed the acquisition of Shenzhen Yunfang technology and raising supporting funds, and the transfer of ownership of the underlying assets has been completed on July 27. After the successful acquisition of Shenzhen Yunfang, the company has greatly improved in terms of asset size and revenue. As of this three-quarter report, the company's total assets reached 6.8 billion yuan, a year-on-year increase of 2.8 times; the company's net assets of 4.9 billion yuan, a year-on-year increase of 4.3 times. Among them, one of the major changes in the balance sheet is goodwill. The new goodwill value brought by the acquisition of 100% equity in Shenzhen Yunfang is 3.219 billion yuan.
There is plenty of cash and a lower debt ratio. After the completion of this acquisition, the overall liquidity of the company has also been improved to a certain extent.
Through the merger of Shenzhen Yunfang cash and raising funds, the company reported 1.052 billion yuan in currency cash as of the three quarters, a year-on-year increase of 2.66 times. The company's asset-liability ratio was 27.98%, down 21% from a year earlier, while interest-bearing liabilities were only 7.9%, down 20% from a year earlier. The company has plenty of cash in its account. excluding the 450 million yuan spent on data platform and network construction mentioned in the company's acquisition draft, the company still has 600 million yuan of cash at its disposal.
Performance promises to protect the company's earnings. According to the company's acquisition plan, the shareholders of the subject matter promised that the net profits of non-return ordinary shareholders from 17 to 19 would not be less than 257.5 million yuan, 322.5 million yuan and 365 million yuan respectively. If, during the performance commitment period, the actual net profit of the target company in any year is lower than the corresponding annual net profit promised by the compensation obligor, the compensation obligor shall compensate the listed company with the share consideration and cash consideration obtained through this transaction. According to the company's latest share capital of 916 million shares, the corresponding earnings per share for 17-19 years are 0.28,0.35 and 0.40 yuan per share. Since the company completed the consolidated statement in July of 17 years, the 17-year earnings per share is at least 0.28x (5 + 12) = 0.12 yuan per share.
Investment advice: do not rating temporarily. QFang.com, the main business of Shenzhen Yunfang, is still in the expansion stage, and the acquisition of Shenzhen Yunfang provides the latter with sufficient capital to support the expansion of market share. The application of Internet platform plays a more and more important role in big data processing, information accuracy and effectiveness, and expanding business and individual customers. In addition, Q Housing Network with the combination of online and offline Internet + real estate economic business has the advantage to expand the existing housing rental business. We forecast that the company's EPS for 17 and 18 years will be 0.12 yuan and 0.34 yuan per share respectively (18-year performance forecast reference performance commitment). On October 27, the closing price was 10.37 yuan, corresponding to an 18-year PE of 30.5 times. Compared with comparable real estate agencies and Internet companies, the company's current 18-year valuation is slightly higher and will not be rated temporarily.
Risk hint: affected by policy regulation, the performance of Q Fang.com new house agent sales and brokerage business does not meet the target.