桑拿

Zhongbai Group (000759): Major shareholders and Yonghui sign cooperation memorandum to try to improve profitability

28/03/2020

Zhongbai Group (000759): Major shareholders and Yonghui sign cooperation memorandum to try to improve profitability

The company ‘s largest shareholder Wuhan State Assets and Yonghui Supermarket signed a “Memorandum of Cooperation”. The company announcement 南宁桑拿stated that the company ‘s largest shareholder Wuhan State Assets and Yonghui Supermarket (601933).

(SH) At the request of the National Development and Reform Commission, they reached consensus on the company’s actual controller, corporate governance, business management, and future development direction, and merged the “Cooperation Guide”.

Commitment to promote the company’s management reform and improve profitability. The two parties made a promise in the cooperation memo to further promote the internal market reform of the company. In the future, the chairman of the company will be appointed by Wuhan State-owned Assets Management, and the general manager will be appointed by Yonghui Supermarket.produce.

In the future, the company’s management team’s personnel selection and salary increase will be further market-oriented, while supporting the company’s employee equity incentive through repurchase.

The two parties will promote the optimization of the company’s business processes and ensure the cooperation and collaborative development with Yonghui Supermarket in all aspects of the company’s operations, in an order that will not affect the company’s marketization and independence.

Strive to increase the company’s main business net interest rate to 2 within three years.

5% (Company 1-3Q2019 net profit is 0.

36%).

Yonghui cancels part of the tender offer plan and does not seek real control of the company. On April 12, 2019, Yonghui Supermarket announced that it would like to see the company’s future development prospects, promote strategic cooperation and business synergy between the two parties, and issue part of the tender offer to the company.Plan to acquire no more than 10 companies.

14% equity.

In this cooperation guide, Yonghui Supermarket decided to cancel the tender offer plan for the above-mentioned part and maintain the company’s existing actual controller unchanged.

Yonghui Supermarket currently holds a total of 29 companies.

86% of the shares, of which Yonghui directly holds 5%, through its subsidiary Chongqing Yonghui Supermarket Co., Ltd. holds 15 shares.

02%, through its subsidiary Yonghui Logistics Co., Ltd. holds 9杭州夜网 shares.

84%.

With its leading management capabilities, Yonghui helped improve the company’s main business and promote the company’s profitability.

Taking into account the effects of the business synergy between the two parties and the possible new impact on the company, it will take time to show, we maintain the company’s fully diluted EPS for 19-21 is 0.

08/0.

08/0.

The forecast of 09 yuan maintains the rating of “overweight”.

Risk warning: The effect of cooperation with Yonghui is not as expected, and the effect of store upgrades is not as expected.