Stormwind Technology is optimistic that Straw Bear Pictures will establish Stormwind Pictures to enter the film and television industry chain

According to the merger and reorganization plan announced by Stormwind Technology, it will invest 1.08 billion yuan to acquire 60% of the equity of Caocao Bear Pictures. As a condition for the high-priced acquisition, Caocao Bear and Stormwind Technology signed a "gambling" agreement. Judging from the reporter's interview results with Storm Technology and Straw Bear Pictures, both parties are confident in achieving their performance targets. Feng Xin, CEO of Stormwind Technology, announced that he will soon establish Stormwind Pictures to create the entire industry chain from script creation or purchase to film production and distribution.

After a long wait, Stormwind Technology, which had been suspended for five months, finally resumed trading.

Judging from yesterday's trend, Stormwind Technology's "demon king" character has not changed, with a daily limit at the opening. The pressure of lifting the ban with a market value of 10 billion yuan is nothing more than a cloud in the face of fanatical funds. Who is happy with such a grand occasion?

The reporter noticed that Liu Shishi, who had just held a grand wedding, undoubtedly once again interpreted the meaning of a winner in life. The market value of Storm Technology, which is worth 150 million yuan, has reached 290 million yuan in just one day. With the large shipments of institutions yesterday, whether Stormwind Technology can continue the myth of the "Monster King" in the future is still a question mark.

150 million yuan "seconds change" 288 million

yuan According to the acquisition plan, Liu Shishi's shares in Caocao Bear Film can be divided into the following two parts.

Liu Shishi holds a total of 20% of Caocao Bear Pictures, but in the deal with Baofeng Technology, she only sold 12% of the shares, and the remaining 8% of the shares are still in her hands. If we only calculate based on the valuation of 100% equity of Caocao Bear Film at that time of 1.52 billion yuan, the corresponding value of the above 8% equity is as high as 122 million yuan.

Among the 12% equity sold, according to the restructuring plan, Storm Technology Company plans to pay Liu Shishi a transaction consideration of 64.8 million yuan in cash, and issue approximately 2.73 million shares to him. Based on the issue price of 55.46 yuan, the consideration for this part of the shares is 151 million yuan.

Among them, the issue price is particularly noteworthy. According to the acquisition plan, the issue price shall not be less than 90% of the average price of the listed company's shares in the 60 trading days before the pricing benchmark date. The issue price of 55.46 yuan is only 52.6% of yesterday's Stormwind's closing price of 105.41 yuan, which is almost a 50% discount.

It can be seen from the above that the "cost" for Liu Shishi to obtain approximately 2.73 million shares of Stormwind Technology was only 151 million yuan, and based on Stormwind Technology's closing price yesterday, the value of the above shares was approximately 288 million yuan.

The reporter noticed that the value corresponding to the above-mentioned equity is still paper wealth, and there are still variables whether it can be truly realized in the future. Baofeng Technology is a famous monster stock, and its share price valuation often ranks among the top of A-shares. The real answer will not be announced until three years later. However, yesterday's resumption of trading on Stormwind Technology was undoubtedly another gift for Liu Shishi, who had just gotten married.

According to the merger and reorganization plan announced by Stormwind Technology, it will invest 1.08 billion yuan to acquire a 60% stake in Caocao Xiong Pictures. For a film and television company that has only been established for about two years and has only filmed two TV series so far, the valuation of 60% of the shares and 1.08 billion yuan is surprising. Bi Shijun, CFO of Stormwind Technology, explained that the common valuation routine in M & A business is to determine the valuation scale based on the multiple of the P/E ratio, where the multiple depends on the profit growth rate; usually, an 18 times P/E ratio requires at least 30% per year. Profit growth rate is supported by the growth rate, while Straw Bear Pictures promises an annual profit growth rate of 40%. Therefore, the acquisition valuation of 1.08 billion yuan is reasonable.

In fact, as a condition for the high-priced acquisition, Straw Bear and Storm Technology signed a "gambling" agreement, promising that the cumulative net profit from 2016 to 2018 will not be less than 436 million yuan. If the profit does not meet the standards, Straw Bear Pictures will need to pay Storm Technology make up for the difference. However, judging from the reporter's interview results with Stormwind Technology and Straw Bear Pictures, both parties are confident in achieving their performance targets.

Liu Xiaofeng, general manager of Straw Bear Pictures, told reporters that this year Straw Bear Pictures will start filming at least four dramas. These four dramas will be broadcast in 2017 and 2018. These four dramas are enough to complete all profit targets in 2017., and even a large part of the 2018 profit target will be achieved, and the two TV series that have been filmed and broadcast will achieve this year's profit target.

"As long as the general environment of the film and television market remains unchanged, I am optimistic about achieving my performance goals." Liu Xiaofeng said.

Bi Shijun also said that there is "no problem" for Caocao Bear Pictures to fulfill its performance commitments. According to him, the profit of the single episode of "Shushan War 1" that has been filmed is between 3 million and 4 million yuan, and the net profit of the department's TV series is close to 200 million yuan. Liu Xiaofeng said that filming of "Shushan War 2" will also start this year. Currently, an agreement has been reached with TV stations and online broadcast platforms on the purchase price, and the profit is expected to be equally considerable. "I think the film and television works of the" Shushan War "series alone are enough to achieve the three-year profit target." Liu Xiaofeng said.

Stormwind Technology and Straw Bear Pictures will also engage in VR content in the field of cooperation. Bi Shijun revealed that it is expected that in mid-April this year, Storm Technology and Straw Bear Pictures will jointly establish a VR film and television production company. The initial investment scale of Storm Technology is expected to be more than 10 million yuan. The new company is responsible for producing VR film and television works.

In addition, in addition to laying out TV dramas, Stormwind Technology also announced that it will enter the film industry. At the press conference that day, Feng Xin, CEO of Stormwind Technology, announced that he would soon establishStormwind Pictures to create the entire industry chain from script creation or purchase to film production and distribution.

Behind

the trading limit of hot money from institutional shipments, Storm Technology is the hard work of hot money and the large-scale shipments of institutions.

The after-hours Dragon and Tiger List shows that among the top five with the largest sales amounts, institutions occupy the top four, with shipments reaching 210 million yuan for the first position, and the same large amount of sales for the second position, reaching 110 million yuan.

However, hot money that is accustomed to licking blood is still buying in large amounts. The top five with the largest buying amounts are all occupied by hot money from various sources, including the well-known CITIC Securities Hangzhou Siji Road and Huatai Securities Shenzhen Yitian Road Rongchao Business Center, which bought 53.2 million yuan and 42.2 million yuan respectively.

The reporter noticed that while the value of Liu Shishi's equity soared, stock prices are still the most concerned issue for investors. On March 24, after one year of listing, Stormwind Technology ushered in a climax of lifting the ban on 127 million shares. If calculated at the price of 95.83 yuan at the time of the suspension, the value of this part of the equity is as high as 12.2 billion yuan. Judging from yesterday's market, institutions chose to leave but hot money was not afraid of selling pressure. In addition, the transaction volume throughout the day reached 2.12 billion yuan, and the turnover rate reached 30.76%.

Faced with a huge number of banned shares, the Shenzhen Stock Exchange also gave inquiries. In response to this, Stormwind Technology responded that as of the date of issuance of the reply to the inquiry letter, among the shareholders, directors, supervisors and senior managers of Stormwind Technology whose shareholding ratio is more than 5%, the 21.56 million shares held by Harmony Growth, the 3.1769 million shares held by Wei Chanyuan, and the 1.21 million shares held by Wang Gang were all unlocked in March 2016. Feng Xin's shares will be unlocked. The lock-up period will be lifted in 2018. The remaining restricted shares will be unlocked in October 2016.

The company conducted interviews with shareholders and relevant personnel holding more than 5% of the shares to further understand their willingness to reduce their holdings in the future. Relevant personnel said that as of March 24, 2016, there is no clear plan to reduce the holdings. In the future, a decision will be made whether to reduce the holdings based on factors such as capital market conditions, company's operating performance, and its own financial status, and in accordance with the initial commitment and relevant requirements of current regulations.

As of now, the P/E ratio of Stormwind Technology has reached 910 times. At the time of its suspension, the GEM index was 2527 points. Then, the market fell sharply in January 2016. The GEM once reached 1841 points in early March. As of yesterday's close, the GEM index is 2199 points, which is still a big gap from the beginning of Stormwind Technology's suspension.

Editor: vian