Event: on June 11, the company issued the announcement on the by-election of members of the Special Committee of the Board of Directors, the announcement shows that the thirty-second interim meeting of the Seventh session of the Board of Directors and the annual general meeting of shareholders in 2019 considered and approved the addition of Mr. Mei Zhiming and Ms. Zhang Jiajing as non-independent directors of the Seventh session of the Board of Directors, the term of office is from the date of approval of the shareholders' general meeting to the date of expiration of the term of office of the current board of directors.
GLP founder and CEO serves as chairman of the Strategy Committee to help transform the company.
GLP is the world's leading investment management and business innovation company focusing on logistics, real estate, infrastructure, finance and related technologies, with operations in Brazil, China, Europe, India, Japan and the United States. assets under management in real estate and private equity funds amount to US $89 billion. In February 2019, Wantong Holdings signed a share transfer agreement with GLP, which became the third largest shareholder of Wantong Real Estate after the transfer.
Mr. Mei Zhiming is the co-founder and CEO of GLP. In this restructuring of the board of directors, Mr. Mei Zhiming not only joined the company's board of directors as a non-independent director, but also served as the chairman of the Strategy Committee to control the overall situation, which may mean that the cooperation between GLP and Wantong will be further deepened. in the future, it will enable the transformation and upgrading of Wantong in the fields of capital market, asset development, operation and management.
Financial health promotes new development, and continuous buyback shows confidence
Since 2016, the company's interest-bearing liabilities have decreased significantly, and the asset-liability ratio has also decreased year by year. By the end of 2019, of the company's 2.393 billion interest-bearing liabilities, only 115 million of the company's interest-bearing liabilities matured within one year, the book monetary funds reached 2.405 billion, the monetary funds were sufficient, and the burden of subsequent transformation was relatively small.
On December 27, 2019, the board of directors examined and approved a share buyback plan to buy back 250 million to 500 million yuan of company shares. on April 21, 2020, the board of directors examined and approved a motion to adjust the price ceiling of repurchase shares. raise the maximum price from 6.58 yuan per share to 9.76 yuan per share. As of June 3, 2020, the company has repurchased a total of 33425300 shares, accounting for 1.6273% of the total share capital. The highest purchase price is 8.78 yuan per share and the lowest price is 4.60 yuan per share. The continuous repurchase fully demonstrates the company's management's confidence in the transformation and development.
Investment suggestion: the board of directors of the company is adjusted, and the co-founder of GLP and CEO serves as the chairman of the strategy committee to grasp the overall situation, which is expected to stimulate the company's potential in many areas such as capital market, asset development, operation and management. Among the company's existing real estate projects, the completed projects are of abundant value and can continue to release profits; the rental income of holding property is growing steadily. The asset and liability structure continues to be optimized, with sufficient cash on hand; at the same time, the company continues to buy back shares, demonstrating confidence in future transformation. It is estimated that the company's EPS in 2020-2022 is 0.35,0.38,0.42 yuan respectively, and the current stock price corresponds to 25.29X, 22.81X and 20.74X in 2020-2022, respectively, maintaining a "buy" rating.
Risk hint: the company's strategic transformation is not as expected; the company's real estate project sales and settlement are lower than expected.
