Hainan Ruize (002596)： Hainan’s Leader in the Rise of Expanded Business Ecology
Hainan Ruize (002596): Hainan’s Leader in the Rise of Expanded Business Ecology
The added value of the global horse racing industry chain is high. The overall expectation that Hainan will be injected into the country is that the more developed regions in the world are mainly concentrated in Europe and the United States.
From the perspective of pure-blood horse racing resources, the United States accounts for about 22%, and Australia, Ireland, and Argentina lead; the horse racing industry chain covers a wide range, and the upstream includes horse selection, breeding, training, and related personnel divisions.Including racetrack operation, ticket sales, event broadcasting and sponsorship, etc., the downstream involves the service sector of interest, with high added value and equipped with economic pulling effects. Global horse color is different from profit-oriented gambling halls.The lottery players are officially returned in the form of rebates. The rest mainly supports the hosting of the event, the expansion of the jockey club, and other support for government revenue and public welfare.
The domestic horse racing industry has experienced twists and turns, and Conghua and other racecourses have recently strengthened international cooperation.
The new policy of Hainan encourages the development of horse racing to inject new expectations into horse racing.
The company cooperated with Haiken Group to promote the equestrian town, and the horse racing layout was gradually released. The company recently released an announcement. The subsidiary Shenghua Tourism and Nongken Shenquan and Yuehua Equestrian Cooperation promoted the equestrian town. The estimated investment is US $ 3 billion. Shenghua Tourism Holding Project CompanyThe equity of 30% is the starting point for the promotion of Hainan’s horse racing industry. The company subsequently announced cooperation with Guangdong Equestrian Association to strengthen technical exchanges and regularly hold equestrian events.
Various measures reflect that the company’s previous reserves of horse racing resources have begun to be released. In the future, the company’s other main businesses will also continue to benefit from the policy bonus of Hainan Free Trade Zone port construction.
Haiken Group has rich land resources and has the advantages of large state-owned enterprises, which is of great significance to the development of the company’s horse racing industry.
The company’s “big infrastructure + big ecology + big tourism” ecology is gradually showing up, and its performance is increasing. The engine company completed the acquisition of Daxing Garden in 2015, and entered the landscaping business. After acquiring 100% equity of Jiangxi Lurun and Jiangmen Lushun in 2018, 100% Holdings Guangdong Lurun, entered the municipal sanitation business.
“Landscaping + municipal environmental sanitation” mode realizes conservation and mode sharing.
Daxing Garden has about 50 billion PPP orders in hand, and Lurun won 500 million PPP projects in 2018, with sufficient orders in hand.
The garden + environmental protection business currently has over 30% of its revenue. After the risk of PPP funds is gradually resolved, the performance in 2019 is expected to grow rapidly.
And benefit from the Hainan New Deal’s policy dividends on municipal greening and environmental protection, and large ecological business may become the main performance engine in the future.
At present, the blueprint of “big infrastructure + big ecology + big tourism” has been developed, and the three platforms have great synergy and coordination 无锡夜网 advantages.
Business mix of main business layout Xiong’an expands business capacity, environmental protection business meets New Deal theme On March 30, 2019, the company announced that its wholly-owned subsidiary Ruize Shuanglin and China State Construction West Corporation established a strategic cooperation agreement, and jointly committed to Xiong’an New District and BeijingThe infrastructure construction business in Tianjin and Hebei region will provide a foundation for the company ‘s infrastructure to go nationwide and increase the capacity of its business. Earlier this year, it raised funds to replace some of the consideration of Jiangxi Lurun and Jiangmen Lurun.
9.1 billion, development is supported to a certain extent, and environmental protection business meets the requirements of the Hainan New Deal Ecological Civilization Pilot Zone, and development may be welcomed in the future.
Investment suggestion: Horse racing is gradually landing, and the main business benefits policy. It is expected that the company’s EPS in 2019 and 2020 will be 0.
60 yuan, the current expected PE is 26X, 18X, maintaining the “buy” level.
Risk Warning: Changes in Hainan’s Horse Racing Policy; Equestrian Town Advances Less Than Expected