Jiangsu Guoxin (002608) Company Comment: Controlling Shareholders Increase Holding, Eliminate and Reduce Holding Reforms, Su Jin Energy Gradually Achieves Thickening Results

Jiangsu Guoxin (002608) Company Comment: Controlling Shareholders Increase Holding, Eliminate and Reduce Holding Reforms, Su Jin Energy Gradually Achieves Thickening Results

The controlling shareholder intends to increase its holdings by 1-2 million within 6 months and additional lock-in commitments. The company recently issued an announcement: The controlling shareholder Guoxin Group intends to increase its holdings of the company’s shares within 6 months from December 24, 2019.RMB 10,000, not exceeding RMB 200 million; the company’s shares will not be reduced during the implementation period of the increase and the completion of the increase within 6 months.

On the final announcement date, Guoxin Group directly held 26 shares of the company.

7.2 billion shares, accounting for 70 of the company’s total share capital.

72%, Guoxin Group and its concerted parties held a total of 27 company shares.

5.1 billion shares, accounting for 72 of the company’s total share capital.

80%.

The risk of reducing holdings after lifting the ban in January next year may have eliminated losses.
On January 6, 2020, the controlling shareholder Guoxin Group will have a sum of money.

5.8 billion shares (accounting for 62 total shares).

42%) The restricted shares have been lifted.

This increase in holdings adds a commitment to the lock-up period, meaning that the shares held by shareholders (including the above-mentioned lifting of the ban) will not be sold during the lock-up period. We believe that it can effectively lift the secondary market to control the holding of the ban in January next year.Shareholders may benefit from reductions.

When the controlling shareholder’s shareholding ratio has exceeded 70%, the company continues to increase its holdings considerably, which fully shows its confidence in the company’s future development.

As a listing platform of the energy and financial sector under Guoxin Group, the company is expected to receive more support from shareholders in the aspects of high-quality asset injection, capital operation, mergers and acquisitions and restructuring.

Sujin Energy has completed the completion of three existing projects, and is expected to contribute considerable results next year. The company invested in the establishment of Sujin Energy in October 2018, operated the Yanhuai DC supporting power point project, and strengthened the company’s share in the Jiangsu power market.To achieve a breakthrough in the company’s business area, the company’s strategic layout was optimized.

Sujin Energy intends to acquire four projects of China Coal Pingshuo, China Power Shentou, Tongmei Tashan Phase II, and Jinneng Baode.

China Coal Pingshuo (two units of 660,000 kilowatts), Tongmei Tashan Phase II (two units of 660,000 kilowatts), Jinneng Baode (two units of 660,000 kilowatts) three projects have completed distribution delivery and industrial and commercial registration for filing, expected 19 yearsConsolidated.

These three projects are located in Shanxi. They are all pithead power plants with coal cost advantages, with a total installed capacity of 3.96 million kilowatts.

The second phase of Tongshan Tashan has been put into operation. We expect that the four units under construction of Pingshuo and Jinneng Baode of China Coal will be put into production next year, which will bring considerable growth to the company’s thermal power sector performance.

The development of trust business is expected to enter the harvest period. The company actively promotes the development of trust business. Jiangsu Trust has successively established four remote business units in Shenzhen, Chengdu, Beijing, and Shanghai, and has established a market-based wealth center, real estate trust department, and consumer trust department in the headquarters.Professional departments.

The company will incentivize the team’s ability to expand its business and improve the company’s overall competitiveness through revenue-to-budget 厦门夜网 reform.

We expect that the above business layout is expected to enter the harvest period in 2020, which will bring a significant increase in the profit of the trust sector.

Earnings forecast and rating We predict that the company’s 19-year power generation may overlap due to changes in supply and demand, coal control policies and other factors. Therefore, the company’s 19-20 year attributable net profit forecast variable 31 is reduced.

2, 28.

700 million (33 before adjustment).

9, 30.

1 ‰), and increase the predicted net profit attributable to mothers by 2021 31.

300 million.

The company’s main business is “dual-wheel drive” in energy and finance, with excellent asset structure and reasonable layout. It can play the complementary effects of industry and finance, overcome the impact of industrial economic cycles to a certain extent, and improve the company’s overall strength and competitiveness.

We are optimistic about the company’s future development and maintain a “Buy” rating.

Risk warning: macroeconomic fluctuations, changes in trust policies, rising coal prices, lower electricity prices