Shanghai Disneyland will formally open on June 16. As a large scale project with total investment of 34 billion yuan, Shanghai Disneyland likely brings not just a journey for the tourists, but also the expansion of various industries, including the service industry, tourism industry and information industry. Industry insiders believe that this event is expected to affect the nerves of the capital market once again. Investment opportunities on Disneyland related themes are also expected to spring up.
Since the beginning of June, Disneyland concept sector has again outperformed the market, hitting an overall growth of nearly 2 percent, while SSE Composite index hiked just 0.36 percent during the same period. 36 component stocks in this sector have surged in June. Zhejiang Haers Vacuum Containers Co., ltd. (002615.SZ), Shanghai Ya Tong Co., ltd. (600692.SH) and Guangdong Kinlong Hardware Products Co., ltd. (002791.SZ) have in total gained 10.22 percent, 10.18 percent and 10.09 percent respectively during the period. Other stocks also experienced remarkable increase during the period: Shanghai Lujiazui Finance& Trade Zone Development Co., Ltd. (600663.SH), Palm Eco-town Development Co., Ltd. (002431.SZ), Jiangxi Special Electric Motor Co., Ltd. (002176.SZ), Dazhong Transportation (Group) Co., Ltd. (600611.SH), Shanghai Tongji Science & Technology Industrial Co., ltd. (600846.SH), Shanghai Jin Jiang International Industrial Investment Co., Ltd. (600650.SH), Shanghai Jielong Industry Group Corporation Limited (600836.SH), Shenzhen Jieshun Science and Technology Industry Co., Ltd. (002609.SZ) and Zhejiang Kaier New Materials Co., Ltd. (300234.SZ) have increased by 8.66 percent, 8.65 percent, 7.24 percent, 7.06 percent, 6.58 percent, 5.47 percent, 5.43 percent, 5.43 percent and 5.07 percent respectively.
For capital flows, 13 Disneyland related stocks have recorded net capital inflows from big orders (more than 500 lots or 50,000 shares) in June. Jieshun Science and Technology Industry ranks the first in terms of net capital inflows from big orders, reaching 62,625,000 yuan. Tongji Science & Technology Industrial ranks the second, receiving capital inflows of 43,923,000 yuan in total from big orders during the period. Shanghai Dragon Corporation (600630.SH), Ya Tong and Dazhong Transportation (Group) also witness capital inflows of 36,306,300 yuan, 36,133,300 yuan and 32,261,300 yuan in aggregation respectively from big orders during the period. Besides, several other companies also see net capital inflows from big orders in the period: Lujiazui Finance& Trade Zone Development, Shenzhen Beauty Star Co., ltd. (002243.SZ), Shanghai Shentong Metro Co., Ltd. (600834.SH), Shanghai Pudong Road& Bridge Construction Co., Ltd. (600284.SH), Shanghai Jiao Yun Group Co., Ltd. (600676.SH), Shanghai International Airport Co., Ltd. (600009.SH), Shanghai Jinjiang International Hotels Development Co., Ltd. (600754.SH) and Shanghai Bailian Group Co., Ltd. (600827.SH) have received 25,004,100 yuan, 20,515,300 yuan, 18,305,700 yuan, 11,878,300 yuan, 11,854,400 yuan, 11,020,500 yuan, 8,018,900 yuan and 510,200 yuan respectively.
In this regard, securities companies, including China Merchants Securities, Northeast Securities and Changjiang Securities, are optimistic about the performance of Disneyland concept stocks. Northeast Securities pointed out that good news for Disneyland theme start to realize, and it can drive the development of other industries. Region-based tourism will become a hot spot in the future.
In the recent month, securities companies have granted positive ratings such as “buy” and “outperform” for 14 Disneyland related stocks and given the target prices of such stocks. In terms of the room of price hike, Yango Group Co., ltd. (000671.SZ), Shanghai Maling Aquarius Co., Ltd. (600073.SH), Huayu Automotive Systems Company Limited (600741.SH), Jinjiang International Hotels Development, By-health Co., Ltd. (300146.SZ), Shanghai Oriental Pearl Media Co., Ltd. (600637.SH), Beijing Shiji Information Technology Co., Ltd. (002153.SZ) and Shanghai International Airport are likely to gain over 3 percent. In particular, Securities companies expect Yango Group to increase by 78.19 percent in terms of its share price, and Maling Aquarius to surge by 72.75 percent.
Specifically, Haitong Securities indicated that Yango Group stick to the strategic layout of “3+1+X”, and actively obtain lands through diversified ways, thus its value reserve is highly secure. In addition, the company has determined preschool education as its second growth pole. By virtue of years of accumulation of educational resources from the biggest shareholder, this segment has clear profit-making model and huge potential of development in the future. It is estimated that the earning per share of the company in 2016 and 2017 will be 0.59 yuan and 0.75 yuan for 2016 and 2017 respectively. In 2016, its PE ratio is expected to be 18 times, with target price of 10.62 yuan per share. It was given a “buy” rating.
Zhongtai Securities pointed out that Maling Aquarius has already seen a turnaround. It is estimated that revenue of the company will reach 25.2 billion yuan, 27.4 billion yuan and 30.1 billion yuan for 2016 to 2018, representing year on year growth of 106 percent, 9 percent and 9 percent respectively; net profits attributed to shareholders of the parent company will be 550 million yuan, 630 million yuan and 700 millin yuan respectively, up 237 percent, 14 percent and 11 percent year on year; and corresponding earning per share will be 0.59 yuan, 0.67 yuan and 0.75 yuan. The near-term market capitalization of the company is expected to be 14 billion yuan. And the initial target market capitalization in the medium term is expected to be 20 billion yuan, and corresponding share price is 21.3 yuan. The “buy” rating thus enhanced.
By Adam Zhang
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