Incident: On the evening of November 27, Ningbo Port issued an announcement on the acquisition of shares and related transactions
The company plans to use a transaction consideration of 5.64 billion yuan to acquire shares in competing assets in the relevant industry in cash, including Jiaxing Port Holding Group Co., Ltd., Zhejiang Seaport Jiaxing Port Co., Ltd., Wenzhou Port Group Co., Ltd., Zhejiang Yiwu Port Co., Ltd., and 100% of Zhejiang Toumen Port Co., Ltd.'s shares held by Zhejiang Toumen Port Investment and Development Co., Ltd.
The subject matter of this transaction. The targets of this transaction are port assets in Zhejiang Province, with total assets of 12.09 billion yuan, net assets of 5.12 billion yuan, operating income of 1.45 billion yuan, and net profit loss of 140 million yuan in the first 7 months of 2020; total assets of 12.44 billion yuan in the first 7 months of 2020, net assets of 5.47 billion yuan, operating income of 760 million yuan, and net profit of 300 million yuan.
The impact of this transaction on the company. If the 2019 data on competitive assets of listed companies and peers is calculated statically, after the transaction is completed, the total assets of the company's consolidated statement will increase by 6.45 billion yuan, an increase of 8.99%, and the consolidated statement's operating income will increase by 1,447 billion yuan, an increase of 5.95%. After the transaction is completed, five wholly-owned subsidiaries will be added to the scope of the consolidated statements of listed companies. The injection of North and South Wing port assets will help the company fully coordinate and utilize coastal port resources across the province to participate in market competition, optimize resource allocation, coordinate and optimize route layout and logistics routes according to the new pattern of “integrated two-wing multi-connection” port development, improve cargo collection system construction, vigorously develop stock business potential, increase market share in the province, and maintain steady growth in the company's cargo throughput.
Profit forecasts and ratings. Considering changes in share capital and profit forecast adjustments, the company's 2020-2021 EPS forecast was lowered from 0.26 and 0.28 yuan to 0.21 and 0.23 yuan. The company's EPS for 2020 to 2022 is expected to be 0.21, 0.23, 0.24 yuan, and the company's closing price on December 16, 2020 (3.70 yuan) corresponding to PE in 2020-2022 is 17.9, 16.4, 15.4 times that corresponds to PB of 2020 1.1 times, maintaining the company's “prudent increase” rating .
Risk warning. China's import and export situation has deteriorated, the effects of port integration have yet to be tested, production safety accidents, industry policy risks