Sichuan Shuangma Cement Co.Ltd(000935) (000935)
Event: Sichuan Shuangma Cement Co.Ltd(000935) issued an announcement to change the company name from " Sichuan Shuangma Cement Co.Ltd(000935) " to "Sichuan harmonious Shuangma Co., Ltd.
The change of company name + the change of main business scope is expected to catalyze the change of market cognition of the company.
In order to fully and accurately reflect the company's strategic development direction and business, the company plans to change its name from " Sichuan Shuangma Cement Co.Ltd(000935) " to "Sichuan harmonious Shuangma Co., Ltd.". Highlight that the company's main business has changed. At the beginning of listing, the company's main business was cement manufacturing and sales. With the gradual development of business, the company has become a listed company engaged in industrial investment and management and equity investment fund management. Although cement still contributes the main part from the perspective of revenue, we judge that private equity investment has become the main source of the company's profit source contribution. Considering that the company's performance reward will be gradually released in the future, the main business income structure is expected to be transformed. We believe that this change will enable investors to better understand the development of the company and have a positive effect on the valuation.
The change of the main business scope will further open the development space of the company. The business scope of the company has changed from "cement, cement treatment and technical service" to "enterprise headquarters management; technical service, technology development, technical consultation, technology exchange, technology transfer and technology promotion; big data service; artificial intelligence application software development; intelligent control system integration; building material sales". This change expands the business scope of the enterprise and further paves the way for the future venture capital management, combination of industry and investment and comprehensive industrial development.
The low-level new energy + semiconductor projects are of high quality, and the enterprises invested in the early stage are listed one after another.
At present, one of the company's investment enterprises has been listed ( Advanced Micro-Fabrication Equipment Inc.China(688012) , holding 2.39% at the end of June 2020, which has dropped to less than 1.58%), two have been waiting to be listed (Yitang shares, holding 2.5%; Aojie technology, holding 5.61%); and one is waiting to be listed (jiehydrogen technology, announced on Saic Motor Corporation Limited(600104) November 25 that it plans to spin off its jiehydrogen technology to be listed separately on the science and Innovation Board). In addition to the above four companies, Sichuan Shuangma Cement Co.Ltd(000935) The investment projects also include more than 40 enterprises such as Weilan new energy technology, honeycomb energy, reshaping energy group, spacetime electric, Gaojing Cecep Solar Energy Co.Ltd(000591) , digital intelligence Star Technology and Gesheng technology, all of which are highly prosperous tracks of "advanced manufacturing" such as semiconductor and new energy, and are in a period of rapid development. We judge that there are still companies that can be listed on the secondary market in the future.
With the listing of investment enterprises one after another, the follow-up performance compensation and investment income of self owned funds will be reflected one after another. Previously, as the project is in the growth stage, the investment sector in the company's income statement basically only reflected the "management fee income" (that is, 2% management fee is charged every year according to the management scale of 17.5 billion). Since this year, with the listing of projects, we judge that the withdrawal of equity from the secondary market will contribute to the profit increment of the company.
Investment suggestion: from a long-term perspective, we are optimistic about the company's investment in semiconductor, new energy and other sub circuits, and become the first-class market investment leader benefiting from the development of "China's advanced manufacturing"; In the short term, it is optimistic that the company's performance compensation will be released with the listing of the project, and the follow-up management fee income is expected to grow with the management scale. We expect the net profit of the company from 2021 to 2023 to be RMB 1009 / 1473 / 2187 million; According to the segment valuation method (6xpe for cement business and 20xpe for private equity investment), the company is given a target market value of RMB 25.12 billion in 2022, with a corresponding target price of RMB 32.92, and continues to maintain the "buy" rating.
Risk tip: private equity investment income is less than expected; The pledge proportion of major shareholders is high; There is still uncertainty about the change of the company's name and business scope.
