Supor: High-priced shareholders will raise market valuations

Event Supor 15th Evening Announcement: The controlling shareholder Seb International signed the Strategic Investment Plan, proposed the feasibility proposal to the listed company strategic Investment matter, intends to increase the capital by the 20% Supor shares which the two shareholder Supor Group and three shareholder Zengfu holds, the agreement transfer price is 30 yuan,　　After the increase, the Seb shareholding ratio rose from the current 51.3% to 71.3% (Chart 1). Comments above the current price of 13.6% of the transfer prices show that the holding shareholder of the listed companies and the development prospects of the good: Seb to 30 yuan to let Supor group and the rise of the Soviet Union held a 20% stake in the company, indicating that the majority of shareholders bullish on the future, than today close to the closing price of　　The programme has once again proved to the market that Seb International has been and will be the main body of China's manufacturing and Chinese market in the future.　　The proportion of SEB-owned companies rose from 51% to 71%, the feasibility of financing expansion and equity incentive: In the past, because Seb wanted to ensure absolute holding, the company could not have asymmetric expansion of equity (such as additional, equity incentives), then there is no such restriction after the transfer of equity, increase the company's growth space. We anticipate that, with the support of the controlling shareholder, the company will be earning more than billion in 2013, with a 30% per cent growth level: we have emphasized in our report on the introduction of Lagostina, the top brand of Seb International, last December 2. Since 2007 when Seb International became a controlling shareholder, the listed companies, whether from scale, product and team management ability, have experienced the capacity expansion (Shaoxing kitchen electric base, Wuhan cooker base), internal productivity promotion (per capita net profit increase, chart 2) and operating efficiency improvement (ROE continued to improve, Chart 3),　　Increased market share (cooker and the second pull gap, kitchen electricity share significantly rise), and constantly prove the development of fast and stable characteristics. In the second half of last year, the three-dimensional brand line is the company on the basis of the previous step, in addition to the future of SEB purchase orders continue to transfer (we estimate the 2011 order growth should be more than 30%), there are brand line, product line diversification of growth space.　　We expect the company 2013-year revenue will be more than tens of billions, the next three years of net profit continued to compound 30% levels of growth can be, so despite the current Seb International is a premium acquisition, I believe that soon they will be the capital market and the value of investors in the company's investment in a substantial return. The market is no longer worried about the pressure of two or three shareholders to reduce their holdings in the two market: as a result of the increase in the first half of last year in the two-tier market, the market has been worried that the Supor group will continue to reduce the level of the two market, the total of 20% of the equity transfer, the Soviet increase in Mr. Su no longer hold the shares of listed companies, The Supor group's holdings also fell to 11.8% (the Sioux and Supor groups also continued to recommend 6 board members to the shareholders ' meeting non-exclusiveThe right of 2 directors of Directors, the number of independent directors remains unchanged, and there is no need to worry about a single big one, so this worry can be greatly reduced.　　Investment advice based on the recent tracking, we fine-tune the company's earnings forecasts, 2010-2012-year revenue is expected to be 56, 70, 8.8 billion yuan, the growth rate of 36%, 26%, 25%,eps0.71, 0.92 and 1.19 yuan, growth of 31%, 30% and 30%. We have always stressed that the company is a good value of investment varieties, before the brand line of the three-dimensional expansion not only to increase the new growth point, but also will make the company's consumer goods attributes more significant, the level of valuation in 30-35x11pe as reasonable; By this event, this valuation interval should be recognized by the market Therefore, 6-12 months reasonable price for 35x11pe-30x12pe, that is, 32.3-35.8 yuan, from the current and 22-36% space, maintain the buy rating.