Items:
Fixed additional items: the company plans to issue no more than 2.635 billion shares in a non-public offering, with specific targets for Ningbo Zhoushan Port Group and Shanghai Port Group, with a net fund raised of no more than 11.215 billion yuan. After deducting the issuance expenses, the raised funds are mainly used for wharf construction, berth renovation, asset purchase, replenishment of liquidity and repayment of bank loans. The announcement of the fixed increase plan has been issued, and the plan has yet to be approved or approved by the relevant examination and approval authorities.
Main points:
Raise investment projects to upgrade production capacity and stabilize the leading position of the port. It is proposed to raise 11.215 billion yuan in this non-public offering. Of which 4.6 billion yuan will be invested in the No. 6 to 10 container terminal project in Meishan Port area, 1.04 billion yuan will be invested in the second phase of Zhongzhai Ore Terminal in Chuanshan Port area, 690 million yuan will be invested in Beilun Port area general berth renovation project, 360 million yuan will be invested in Chuanshan Port area No. 1 Container Terminal project and 2.2 billion yuan will be invested in basic investment such as asset purchase. After the completion of the fund-raising project, it is expected to add about 5.55 million TEU container capacity, three ore berths, 20 million tons of ore throughput, 26 tugboats and bridge cranes and other equipment. With the improvement of handling capacity and loading and unloading scale, the business layout is gradually reasonable, and the company's operating strength in the Yangtze River Delta region is further strengthened, which is conducive to the promotion of the company's strategy and consolidate its leading position as the number one port in the world for 11 consecutive years.
The performance is growing steadily, and the debt ratio is expected to decline. According to KuaiBao's performance in 2019, the company achieved an operating income of 24.324 billion yuan, an increase of 10.8% over the same period last year, while the net profit belonging to shareholders of listed companies was 3.364 billion yuan, an increase of 16.56% over the same period last year. The trade structure has been continuously optimized, and the total throughput has reached another record high. the container throughput is expected to be 2961 TEU in 2019, an increase of 6.0% over the same period last year, and the cargo throughput is expected to be 812 million tons, an increase of 4.7% over the same period last year. The increase in the scale of loading and unloading is accompanied by the pressure of debt service. According to the three-quarter report in 2019, the company's total assets are 72.5 billion yuan, the total responsibility is 28.7 billion yuan, and the asset-liability ratio is 39.66%.
Of the funds raised, 2.3 billion yuan is intended to be used to replenish liquidity and repay bank loans, which is expected to reduce the financial cost, reduce the asset-liability ratio, continue to optimize the asset structure, and support the company's development-related capital needs.
Shanghai Hong Kong Group has invested in shares to achieve in-depth strategic cooperation. This non-public offering project has two specific targets: Ningbo Zhoushan Port Group, the company's largest shareholder, and Shanghai Port Group. On the one hand, the increase of controlling shareholders reflects their confidence in the future development of listed companies, on the other hand, Shanghai Group will become the second largest shareholder of the company after subscription, in-depth realization of strategic cooperation. The introduction of Shanghai Port Group as a strategic investor and the integration of port assets of all parties will further promote the coordinated development of ports in the Yangtze River Delta. implement the policy spirit of national strategies such as the Belt and Road Initiative initiative and the Yangtze River Economic Belt and the outline of the Yangtze River Delta Regional Integration Development Plan.
Profit forecast and valuation: in the context of the slowdown in internal and external economic growth, the company maintains a high level of production, achieves double-digit growth, and fully demonstrates its good management ability and operational advantages. We predict that the net profit of the company from 2019 to 2021 will be 3.364 billion yuan, 3.791 billion yuan and 4.541 billion yuan respectively, and the corresponding stock price PE will be 16 times, 18 times and 15 times respectively.
Risk tips: the plan has not been approved, the production capacity of additional projects is not up to expectations, the global economic crisis, a sharp decline in demand and other risks.