Event: the company issued an announcement to adjust the organizational structure. On the day of the announcement, the company led Fujian Electronics and other nine parties to initiate the creation of a "New Smart City Sustainable Development and Operation Alliance".
Comments: organizational structure adjustment, service strategy transformation. The major change in the company's organizational structure adjustment is that the layout has constructed six major business departments-- Strategic Development Division, production City Development Division, Asset Operation and Management Division, Information Industry Division, New Culture Division, and Industrial Capital Division. From the perspective of the main functions of the six major business departments, this organizational structure adjustment is based on the business system as the main division basis and the platform management system under the company's overall development strategy of "new Wantong, new empowerment and new development". Comprehensive landing strategy transformation and upgrading to provide integrated construction, development and service guarantee for urban sustainable development.
Take the lead in the establishment of smart city operation alliance, big data business layout has made further progress. The company led the Fujian Municipal Party Committee, Fujian Electronics, United Nations Network Energy, Taiji, GLP, Shangtang Science and Technology, China Ruida and Shenzhen Computational Energy to form a "New Smart City Sustainable Development and Operation Alliance". Among them, GLP and Shangtang Technology are important shareholders and partners of the company. Party 9 has a leading position in the fields of digital city operation and management, urban integrated energy management, logistics and industrial real estate, integration of technology and production city, artificial intelligence, integrated circuit and so on. The alliance will take the top-level design of urban operation as the overall planning, give full play to the advantages of all parties in the alliance, and extend the experience and achievements of "Digital Fujian" to the whole country in the form of joint ventures, project cooperation, resource cooperation, technical cooperation, and so on. The Q9 strategic cooperation is another substantial implementation of the deep cooperation between the two sides since the company signed a memorandum of cooperation with Fujian Electronics and its wholly-owned subsidiary Fujian Cloud Computing, the wholly state-owned assets management platform of the Fujian Provincial people's Government in May this year. It is worth mentioning that during the meeting, the company signed a further contract with Fujian Electronics subsidiary Fujian Nebula big data, which is also the first landing project carried out by the Smart City Operation Alliance in Fuzhou.
The company buys back a lot of money, which shows its confidence in development. Based on confidence in the company's development prospects, the company announced in December last year that it planned to buy back the company's shares by centralized bidding, with a total amount of no less than 250 million yuan and no more than 500 million yuan. As of September 30, the company has bought back 465 million yuan.
To maintain the company's buy rating, the company's EPS is expected to be 0.35,0.40,0.45 yuan in 2020, 2021 and 2022, with a corresponding PE of 23.7,20.4 and 18.2 times, respectively.
Risk hint: the progress of the company's transformation is not as expected; the industry regulation policy is tightened more than expected