Lianmei Holdings (600167): invested 1.03 Billion Shares Acquire Fulin Thermal Heating Business
Core point of view: the company invested 1.30,000 yuan to buy 66% equity of Fulin Thermal, continued to strengthen the main heating industry The company recently announced plans to spend 1%.30,000 yuan purchased 66% equity of Fulin Thermal Power. The project is currently under construction. It is expected that the main body of the first phase of construction will be completed and put into use in the second half of 2019.Equity transferor Tianjin Kaisen promised that Fulin Thermal Power will sell no less than 100 millimeters of industrial steam from July 1, 2019 to June 30, 2020.Fulin is thermally located in Heze, Shandong. The outbound acquisition shows that the company is actively expanding in different places and continues to strengthen its strategic deployment of the main heating industry. Focusing on the industrial steam market, relying on the needs of the park to support the construction of thermal power, the Fulin Thermal Centralized Heating Project mainly serves sheet metal processing enterprises in Zhuangzhai Town. Its demand for steam heat is stable. There are 172 industrial heat users in the region, and the annual steam consumption is 148.43 budget.At present, there are no franchised heat supply enterprises in the vicinity of the project. After the completion of the project, the surrounding small boilers will be gradually banned to optimize the surrounding environment. Actively build the two main businesses: Acquisition of Zhaoxin Media, layout of high-speed rail media, Zhaoxin Media’s main domestic digital passenger railway station construction of digital media, by the end of 2018, the company has achieved coverage of 29 provinces / autonomous regions / municipalities across the country and more than 500 contract locationsNational advertising media network with more than 6000 digital media resources.Zhaoxun Media achieved net profit in 20181.590,000 yuan, an increase of 26 in ten years.9%.The performance commitment for 2019-2020 is 1.88, 2.3.4 billion. There is still room for endogenous growth of the heating area, and we look forward to the development of the two main businesses. We maintain the “Buy” rating and expect the company’s EPS in 2019-2021 to be 0.90, 1.06, 1.24 yuan / share, according to the latest closing price corresponding to PE respectively 13.26, 11.25, 9.57 times.In view of the stable cash flow of the heating and media businesses, a reasonable value of 14 was calculated using DCF.72 yuan / share.Benefiting from the promotion of clean heating, the release of endogenous growth demand from small and large heating areas and the extension of the heating business, the company’s 佛山桑拿网 main business has strived to maintain steady growth in the past three years.”Buy” level. Risks suggest alternative risks of other heating methods; changes in coal prices lead to fluctuations in profit margins; regional network connection area growth is less than expected; Zhaoxin Media ‘s digital media advertising operation scale has expanded less than expected.