Main points of investment
Event: on October 12, the company announced that according to the strategic layout and business development needs, the company adjusted its organizational structure in order to further optimize the management system, improve operational efficiency and ensure the company's sustained and efficient development.
Organizational restructuring to make room for transformation
On October 12, 2020, the company issued an announcement to adjust the organizational structure according to the company's strategic layout and business development needs. 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. The adjustment of the organizational structure of Wantong Development is the practice of its new development strategy of "New Wantong, New Empowerment and New Development" put forward in 2020, using a platform management system to improve business operation efficiency; at the same time, the establishment of six major business departments is conducive to sorting out the existing internal business and lays a solid operational foundation for the transformation.
With Fujian Electronics and other parties, the first city operation cooperation project was signed and landed, according to the China Securities Network, from October 12 to 14, 2020, the "third Digital China Construction Summit" sponsored by the State Internet Information Office, the National Development and Reform Commission, the Ministry of Industry and Information Technology and the people's Government of Fujian Province was held in Fuzhou. On the 11th, it was initiated by Fuzhou Municipal Party Committee, Wantong Development and Fujian Electronics, including State Grid Energy, Taiji shares, GLP, Shangtang Technology, China Ruida, Shenzhen Computing Energy, a total of nine parties, held a "new smart city sustainable development operation signing ceremony" in Donghu digital town in Fuzhou, and formed a "new smart city sustainable development operation alliance". On the 13th, the company and Fujian Nebula big data held a signing ceremony in Fuzhou. In the future, the two sides will start from the field of smart city operation and development, and jointly cooperate in the Internet of things, AI urban brain, industrial Internet, energy management, network security, industrial funds and other fields. Fujian Nebula big data is the main provider of provincial government information outsourcing service authorized by Fujian provincial government, the main franchisee of provincial government information open development, and the holding subsidiary of Fujian Electronic Information Group.
According to the previous May announcement, Fujian Electronics and Wantong Development have signed a "Memorandum of Investment Cooperation" to comprehensively deepen cooperation on data centers and big data development and application. The Q9 strategic cooperation jointly initiated by Fujian Electronics and Wantong Development and the landing of the first city operation cooperation with Fujian Nebula big data is the further promotion of the company's digital transformation. We are optimistic that the company will jointly promote and develop the successful cooperation model of "Digital Fujian" and help build "Digital China".
Raise the repurchase price again to demonstrate confidence in transformation
According to the company's announcement on September 7, 2020, the upper limit of the repurchase price of the company's shares was again adjusted from 6.58 yuan per share in the original plan to 13.26 yuan per share. Previously, the 30th interim meeting of the Seventh Board of Directors of the company approved the adjustment of the repurchase price from 6.58 yuan per share to 9.76 yuan per share. According to the announcement on October 10, as of September 30, the company had bought back a total of 62467640 shares, accounting for 3.0413% of the company's total share capital, and the total amount paid was 465431477.26 yuan (excluding stamp duty, commission and other transaction fees). The total amount of the buyback program is between 250 million and 500 million, and there are still 34.5685 million yuan available for repurchase.
Investment suggestion: the company will continue to implement the new strategic goal of "New Wantong, New Empowerment and New Development" put forward in 2020, make continuous efforts in the digital transformation, reconstruct the organizational structure internally, enable the transformation, and keep in close contact with the digital company externally. sign cooperation agreements and form alliances to lay a solid foundation for subsequent transformation. At the same time, the company once again raised the price of repurchased shares, demonstrating its confidence in future transformation. It is estimated that the EPS of the company from 2020 to 2022 is 0.35,0.38,0.42 yuan respectively, and the current stock price corresponds to the PE of 23.61X, 21.29X and 19.36X respectively from 2020 to 2022, maintaining the "buy" rating.
Risk hint: the company's business transformation is not as expected, and the company's real estate project sales and settlement are lower than expected.