\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 803 Enn Natural Gas Co.Ltd(600803) )
Event:
On April 19, 2022, the company released the report on issuing shares and paying cash to purchase assets and related party transactions, which disclosed the specific details of the asset restructuring transaction plan.
Comments:
The asset restructuring plan is implemented, and the performance commitment is 22-25 years, CAGR 51%. The company plans to acquire 90% equity of the target company ENN Zhoushan in the form of a combination of share issuance and cash payment. In terms of transaction consideration, the evaluation value of 100% equity of ENN Zhoushan is 9.528 billion yuan, and the price of this transaction is 8.55 billion yuan. By the end of 2021, the net assets of the target company were about 2.929 billion yuan, corresponding to pb3.5 billion yuan 25 times. In terms of specific transaction plan, the company plans to issue 248 million shares to ENN technology to purchase 45% equity of ENN Zhoushan held by it, with an issue price of 17.22 yuan / share and a transaction consideration of 4.275 billion yuan; It is proposed to pay cash to ENN technology, ENN group and ENN holdings to purchase 25%, 15% and 5% equity of ENN Zhoushan held by them respectively, with a total transaction consideration of 4.275 billion yuan. In terms of performance commitment, the counterparty promises that the net profit deducted from non parent company in 2022 / 2023 / 2024 / 2025 will not be less than RMB 3.5/6.4/9.3/1.2 billion respectively, and the CAGR is 51%.
The location advantage is obvious, the functional layout is perfect, and the assets of Zhoushan terminal are scarce. In 2021, China's dependence on foreign natural gas increased to 45%. LNG terminal is the only window for China's LNG import, with strong scarcity. By the end of 2021, 22 LNG terminals had been put into operation in China, of which Zhoushan terminal was the first large LNG terminal invested, constructed, operated and managed by private enterprises. Phase I and phase II projects have been successfully put into operation, with a total annual actual processing capacity of 7.5 million tons. In terms of location advantages, Zhoushan terminal is close to the Yangtze River Estuary, and LNG supply can directly cover the whole East China and provinces and cities along the Yangtze River. In 2021, Zhoushan terminal has become the second largest stable gas source in Zhejiang Province; In terms of functional layout, the main business of Zhoushan terminal not only includes basic services such as LNG unloading and storage, gaseous export and pipeline transportation, but also actively expands innovative services such as tank capacity leasing, LNG ship filling and small boat distribution. The functional layout is relatively perfect. From 2020 to 2021, ENN Zhoushan will achieve an operating income of RMB 9191377 million and a net profit attributable to the parent company of RMB 373636 million respectively.
The injection of power into the receiving terminal helps diversify the resource pool, and the synergy is expected to be enhanced. Recently, the company has successively signed LNG long-term agreements with international gas suppliers such as etlng and nextdecade. By 2026, the long-term contract volume of LNG will exceed 7 million tons. Zhoushan terminal has a high degree of synergy with the company's business. After injection, it will serve as an important platform for the company's global allocation of LNG resources, help the company realize the dynamic adjustment of long, medium and short-term procurement of overseas LNG resources, form a more stable and competitive resource pool in the upstream and further improve the natural gas distribution capacity in the downstream. In addition, the injection of Zhoushan terminal will provide more possibilities for the company's international natural gas trade and realize the internationalization of natural gas trade.
Profit forecast and Valuation: without considering the consolidation of the terminal for the time being, the company is expected to realize a net profit of 5.42 billion yuan, 6.03 billion yuan and 6.68 billion yuan from 2022 to 2024, corresponding to 9.1 / 8.2 / 7.4 times of PE, maintaining the "buy" rating.
Risk tip: related to the company: the price of upstream gas source has not dropped significantly; The policy side is worse than expected; The reorganization may be suspended, suspended or cancelled; May dilute the immediate return of listed companies; Risks brought by the current geopolitical situation to the global natural gas market; Related to the target company: high customer concentration, dependence on related parties to a certain extent, industry competition risk, etc
