Huaxia Happiness (600340): Proposed issue of perpetual bonds effectively expands financing channels
I. Overview of the event Huaxia Happiness issued an announcement saying that the company’s controlling shareholder, Huaxia Holdings, intends to provide the company with 1.8 billion yuan of perpetual debt funds, and the annual expenditure of perpetual debt funds is 6% / year.
2. Analysis and judgment of the perpetual debt to be issued, the financing cost can be controlled According to the “Share Transfer Agreement” signed by the shareholder Huaxia Holdings, the actual controller Mr. Wang Wenxue, Ping An Asset Management Co., Ltd. on January 31, 2019 and the aboveRelevant provisions of the supplementary agreement subsequently signed between the parties and Ping An Life Insurance Co., Ltd., Huaxia Holdings intends to provide Huaxia Happiness with US $ 1.8 billion in funding in the form of perpetual claims, and the payment of perpetual debt funds 南京夜网论坛 for the first 1-3 years is 6On the whole, the company’s financing cost has decreased compared with the previously issued bonds. The bond financing will supplement the company’s liquidity, which is beneficial to the company’s business development and capital allocation.
New senior executives received equity incentives to help the business develop steadily. The company plans to grant 653 to eight senior executives including Wu Xiangdong and Yu Jian.
60,000 stock budgets and budget stocks, the exercise price is 29.
94 yuan / share, accounting for 0 of the company’s total share capital at the time of the grant of the right to equity.
This equity incentive gives full play to the company’s recognition of new executives and lays the foundation for future business development.
Deeply plowing the core metropolitan area and significant benefits of remote replication. The company insists on intensive cultivation of the Beijing-Tianjin-Hebei, Yangtze River Delta and Guangdong-Hong Kong-Macao dollar high-energy core metropolitan areas, and actively promotes three high-potential metropolitan areas in Zhengzhou, Wuhan and Chengdu, as well as the layout of Changsha, Xi’an and Guiyang.And Shenyang Metropolitan Area.
At least the end of 18, the company signed a contract value of 162.8 billion U.S. dollars, an increase of 7%, of which, foreign port sales amounted to 75.6 billion U.S. dollars, an increase of 109%, the proportion of total sales amount rose from 24% to 46%, the contribution of foreign portsWith the improvement, remote replication continues to accelerate.
Third, investment recommendations Huaxia’s happy performance has been growing steadily, all businesses have developed in a coordinated manner, and their finances are stable. Outsourcing acquisitions have increased market share.
The company’s EPS is expected to be 5 in 19-21.
34 yuan, the corresponding PE is 6.
7 times, the company’s highest in the past three years, the lowest, the median PE is 20.
6 times, maintain the company’s “recommended” rating.
4. Risk warning: The real estate budget policy is tightened, and sales are below expectations.