Category: Money tips Release Date: 2007-03-08
Company 22, has completed the private placement announcement, the actual number of 6780 additional shares issuance price of 12.98 yuan / share. December 27, 2006, Shaanxi and radio and television and other 10 institutional investors are in cash paid subscription models. The additional 880 million yuan of funds raised, after deducting issuance costs, net of 860 million yuan.
Shaanxi Broadcasting allocation of 1660 shares, accounting for radio and television networks in this additional 24.48% of the total stock. The issuance is completed, Shaanxi Broadcasting radio and television networks to hold shares of 7667 shares, representing a total capital ratio of radio and television networks before the issuance of 42.73 percent from the fall to 36.80 percent, but still the largest shareholder of radio and television networks. The release of this object and the subscription number of additional shares in the following table:
The company raised the additional funds will be used exclusively for acquisition of Shaanxi Province, 11 cities and districts of the cable network assets to be acquired net assets assessment 10.99 billion; the same time, the company intends to June 16, 2007 before the completion of the acquisition a "ministry Dry net "cable assets, the net asset value of about 83.64 million yuan. Analysis of the company's issuance of the incident .. After nearly two years after the time finally completed, Shaanxi Province, 11 municipal and district cable network assets acquisition is also expected to be completed in the near future, the company also said that the acquisition of provincial networks will also be dry in one year to complete.
Issuance of completion of the acquisition the company transformed itself after the realization of the net assets of December 31, 2005 of 195 million rose to 1.075 billion, the main business will also be advertising agency into a cable network operators.
To communicate with the listed company, we understand that by the end of 2006 the number of cable television subscribers in Shaanxi Province is expected to 3.43 million, compared with 2005 increased by 45 million, exceeding our previous forecast of 300,000; the digital TV transition as originally planned, by the end of 2006 conversion of 20 million, planned in 2007 conversion of 65 million.
As the company's largest uncertainty has been eliminated, Shaanxi Province, the number of cable television subscribers increased faster than expected, thus increasing the company forecast net profit of 07,08 years, respectively, to 1.53 billion yuan and 183 million, corresponding to EPS were 0.74 million and 0.88 yuan, an increase in company's target price to 24.48 yuan, maintaining a "buy" rating.
The company's investment risk primarily lies in the future transformation of two-way cable network expenses. Enhance the value of the future of digital TV is still the VOD, online gaming, interactive value-added services, so the two-way cable network transformation is inevitable. At present the two-way cable network in Shaanxi Province transformation is only completed 10 million, so there are still 3.3 million did not complete two-way transformation. According to the current two-way transformation of the unit cost of 200 yuan / household basis, the future of the company a two-way transformation of the total expenditure will reach 660 million yuan.
