Kong Tai Holdings (600687) : Controlling shareholders intend to increase their shares to demonstrate their confidence in the company's development

Our analysis and judgment

(a) Controlling shareholders intend to increase their shares to demonstrate their confidence in the company's development

On November 27, the company's stock price closed at 13.60 yuan, the company's controlling shareholders intend to increase their holdings at a price of no more than 18 yuan, It fully shows the controlling shareholders' confidence in the long-term development prospects of the company, which helps to stabilize the market's expectations of the company.

(2) The company's restructuring progress is still within the normal range

Recently, the company's stock price has fluctued greatly, especially after the company issued the "Announcement on the application for extension of submission of material material for material asset restructuring feedback written Reply". Whether the company's reorganization can be passed will have a significant impact on the company's fundamentals. We believe that the written reply to the feedback on the application for a delay in submitting the material assets reorganization application materials will not materially affect the success of the company's material assets reorganization. The feedback of the regulatory authorities shows that the overall reorganization of the company is still in the normal process of promotion for the administrative license materials of "Approval of Zhejiang Gangtai Holding (Group) Co., Ltd. to issue shares to purchase assets".

(3) There is the possibility of further resource integration in the future

The company intends to purchase assets of Daye Mining has a mining right for the bridge gold mine mining right, the Ministry of Industry and Information Technology recently issued the Ministry of Industry and Information Technology on promoting the sustainable and healthy development of the gold industry Guidance. We believe that the above opinions are conducive to the company relying on Daye Mining in the future to further merge and reorganize the surrounding gold enterprises.

Investment Proposal

We forecast that after the company's asset reorganization is approved, the earnings per share from 2012 to 2014 will be 0.02 yuan, 0.57 yuan and 0.9 yuan respectively. Corresponding to the current PE price of 548.2, 23.8, 15.2 times respectively, maintain the "recommended" rating.

Risk warning

1. The company's asset reorganization progress is not as expected or the company's major asset reorganization still has the risk of not being approved; 2. The price of gold has fallen sharply; 3. The company's mine construction and labor costs and other reasons led to the increase of mineral gold costs; Mineral development risk; 5. Risk that the construction progress of gold mine under construction is not as expected; 6. Risk of prospecting within the scope of prospecting rights.

(Galaxy Securities)

Plastic Industry Video