Ordinary people (603883): Zexing Investment clears positions to reduce holdings and war investment dates are on the agenda
Event Zexing Investment announced a plan to clear its position and reduce its shareholding. On the evening of July 23, the company issued an announcement that Zexing Investment, a shareholder holding more than 5% of its shares, plans to reduce its shareholding. A brief comment on dating war investment, multi-channel reduction of all shares, reducing market impact At present, Zexing Investment holds 85.33 million shares and holds 29.78%. The reduction of shareholding is planned to be through centralized bidding transactions, block transactions and agreement transfers. The total shareholding of the company shall not be reduced to 85.33 million shares, that is, not to exceed 29 of the total number of company shares.78%.With reference to the new rules for reducing holdings, carry out the reduction operation, in which the proportion of holdings reduced by centralized bidding transactions is not more than 1%; the proportion of holdings reduced by block transactions is not more than 2%;Fang’s transfer ratio is not less than 5% of the company’s total shares.The reduction price is determined according to market conditions. We believe that: 1) Zexing Investment’s reduction in holdings can be understood as dating multiple strategic investors, which can bring synergy to the company’s business and ensure the company’s long-term development; 2) Considering Zexing’s investment income and the number of reductions, the reduction of holdingsThe method is estimated to give priority to agreement transfers and block transactions, rather than collective bidding in the secondary market. Healthy operation and steady growth The company has a stable operation and healthy growth.In terms of business strategy: 1) For large non-hospital stores, gradual store replacement work is being implemented to reduce costs and increase efficiency; 2) Regional focus and intensive cultivation: In 19 years, the company sorted out the provinces with the highest market share and encryptedPromote intensive cultivation in the province to increase the local market share; 3苏州夜网论坛) Pilot the chronic disease management model to improve the compliance of prescription drug patients; 4) Develop franchise store business, expand the sales scale of varieties by combining the asset-light model, and gradually increase the combination of diversified focus strategiesProportion of unified mining and scale advantage.We believe that with the conversion of various operating strategies, the company’s long-term performance is expected to usher in accelerated growth in the future. Earnings forecast and investment rating predict that the company’s operating income for 2019-2021 will be 118.1.5 billion, 147.05 ppm and 183.04 million, net profit attributable to mothers was 5.3.1 billion, 6.51 ppm and 7.950,000 yuan, an increase of 22 each year.1%, 22.6% and 22.2%, equivalent to 1, respectively.86 yuan / share, 2.28 yuan / share and 2.79 yuan / share, corresponding to PE of 29.5X, 24.1X and 19.7x, maintain BUY rating. Risk analysis Risk of policy changes in the industry; market competition intensifies; scale expansion progress fails to meet expectations; M & A store integration fails to meet expectations; goodwill impairment accruals;