AVIC Hi-Tech (600862) Commentary on Major Issues: Real Estate Substitute Main Business Clearly Improves “Takeover” Performance of the Group
The company issued multiple announcements on December 31, mainly including: 1) Aviation Industry Group intends to absorb the controlling shareholder of the merged company AVIC Hi-Tech; 2) the company’s shareholder State Administration Center plans to reduce its holdings to no more than 27.8 million shares within 6 months; 3)Complete 100% equity transfer of real estate company.
We believe that the amalgamation of the aviation industry group is to reduce the internal main body level and optimize the management structure; after the real estate business is completed and replaced, the company will focus on the new aviation material main business and benefit from the upgrade of our military aviation equipment in the future, especially the straight 20 and annihilation 20Climbing heavy volume, the main business of composite materials is expected to enter the rapid heavy volume period in the next 3-5 years, we continue to be optimistic about the company’s medium and long-term development.
Aviation Industry Group plans to absorb and merge AVIC hi-tech.
The company disclosed on October 26, 2016 that AVIC Hi-Tech, the company’s controlling shareholder, intends to transfer the company it holds through free transfer5.
9.7 billion shares (42% of the company’s total share capital).
86%) transferred to the actual controller Aviation Industry Group.
At present, because some mandatory conditions have not been met, Aviation Industry Group plans to adjust the free transfer plan to an absorption and consolidation plan.
After the completion of the absorption merger, AVIC Hi-Tech will no longer hold company shares, and Aviation Industry Group will directly hold company shares, and the actual controller of the company will still be Aviation Industry Group.
After the Aviation Industry Group directly holds the equity of AVIC Hi-Tech, it will reduce the 天津夜网 share level, help to optimize the management structure, and at the same time provide stronger support for the company’s long-term development and maximize shareholder benefits.
In addition, the announcement said that after the direct holding of the aviation industry group, it will help promote internal resource integration and promote the development of related industries. At present, listed companies also have manufacturing institutes to convert industrial chain assets. In the future, the aviation industry or alternative listed company platforms will promote related asset integration.
Beijing Guofa has never reduced its holdings in the past.
The company announced that the State Administration Center and its concerted parties Jing Guofa Fund intend to reduce their holdings of the company’s shares by no more than 27.8 million shares through centralized bidding, that is, no 杭州桑拿 more than 2% of the company’s total share capital.
Beijing State-owned Assets Supervision and Administration Center has held AVIC Composite Materials for nearly 10 years. The State-owned Assets Supervision and Management Center is an independent, wholly owned enterprise established by the Beijing State-owned Assets Supervision and Administration Commission.
Beijing Guofa Fund was co-sponsored by Beijing State Administration Center and other companies on December 29, 2011.
When AVIC was established in 2010, the Beijing State Administration Center funded it.
In September 2013, Beijing State Administration Center will be 11.
11% of AVIC Composite Materials’ equity was transferred to Beijing Guofa Fund, which started to hold shares of AVIC Composite Materials.
After combing, we found that Jinguofa has never reduced its holdings in the past by the State Administration Center, and its shareholding ratio has always been 6.
Completed divestment of real estate company.
The company has previously announced that it will divest the real estate business. At present, Jiangsu Zhihao, a real estate subsidiary, has completed the relevant industrial and commercial change registration work. The company has received the remittance from the Beijing Stock Exchange.
50,000 yuan equity transfer, land business completed replacement.
The announcement stated that the equity transfer will increase the pre-tax profit of the 2019 consolidated statement2.
About 29 trillion.
Risk factors: The progress of the absorption and merger events has exceeded expectations, the demand for new aviation materials has fallen short of expectations, the demand for machine tools and equipment has fallen short of expectations, and product quality has risks.
Investment suggestion: Maintain the company’s EPS forecast for 2019/20/21 to 0.
43 yuan, corresponding to PE for 24/39/26 times in 2019/20/21.
Taking into account the high-tech barriers in the composite materials industry and the company’s industry chain leader and long-term performance growth potential, we maintain the company’s “Buy” rating with a target price of 14.