Comment on major events of Oupai Home (603833): Proposed issue of convertible bonds to raise investment to boost competitiveness

03/30/2020 0 Comment

Comment on major events of Oupai Home (603833): Proposed issue of convertible bonds to raise investment to boost competitiveness

Matters: The company issued a public issuance of convertible bonds on August 13, 2019.

The company intends to raise convertible debt to raise RMB total.

9.5 billion, 149 issued.

50,000 hands; six-year term, from August 16, 2019 to August 15, 2025; the initial conversion price is 101.

46 yuan / share.

Comment: Six-year convertible bonds are expected to optimize the company’s capital utilization efficiency.

The company’s convertible bonds each face value of RMB 100, issued at face value, with a term of six years, that is, from August 16, 2019 to August 15, 2025, with a coupon rate of zero in the first year.

4%, 0 in the second year.

6% for the third year.

0% for the fourth year.

5%, the fifth year is 1.

8% for the sixth year.


The conversion period is from February 24, 2020 to August 15, 2025; the initial conversion is 101.

46 yuan / share.

Within five trading days after the expiration of the convertible bond period, the company will 成都桑拿网 redeem all unconvertible convertible bonds to the convertible bond holders at a price of 110% of the par value of the convertible bonds (including the last index).

We believe that after the company’s convertible debt fundraising is in place, the company’s total assets and total debt will increase correspondingly, strengthen the company’s capital strength, and convert it into bond holders’ successive transfers of stocks in the future.The company’s capital structure and its ability to resist risks.

The controlling shareholder promised to prioritize the placement of 800 million, demonstrating shareholder confidence.

Prior to the issuance of the company’s convertible bonds, Yao Liangsong, the company’s controlling shareholder, held the company68.

With 54% of shares, Yao Liangsong promised to prioritize 800 million placements, accounting for 78 of its priority placement quota.

09%, 53 of this public convertible debt.


We believe that the large-scale subscription of the company’s major shareholders demonstrates the firm leaders’ firm confidence in the company’s healthy development in the future.

The implementation of the fundraising projects will help the company to improve its overall strength.

The company intends to invest in three major projects after deducting the issuance costs: (1) the second-phase construction project of the Qingyuan production base (total investment amount).

800 million, the planned use of raised funds of 400 million); (2) the second phase construction project of Wuxi production base (total investment).

3.5 billion, to use raised funds1.

9.5 billion); (3) Chengdu Oupai Smart Home Construction Project (total investment 21.

100 million, the proposed use of raised funds 900 million).

We believe that the three major projects of the reorganized company have been completed successively, and the company’s comprehensive strength will be further improved. After the implementation of the reorganized fund-raising project, new and expanded Chengdu, Qingyuan, Wuxi and existing Guangzhou will be established. Tianjin will effectively and timely meet the major regional sales markets in the countryDemand for orders, reducing logistics and transportation costs, and improving the price competitiveness of the company’s products; reorganization, after the implementation of the three major projects, relying on improved production equipment and production lines, the company’s product quality, production and delivery efficiency will promote improvement, which is beneficial to the company’s market expansion and increaseCompany competitive advantage.

The business of packaged home furnishings has a bright future and maintains the “strong push” level.

With the increasingly fierce competition in the custom furniture industry, the decoration company as an important traffic entrance is bound to become the focus of furniture companies.

We are optimistic about the future development prospects of the self-assembled European home furnishing business and the company’s ability to control and improve efficiency.

We maintain that the company’s net profit attributable to the parent for 2019-2021 is 18 respectively.



29 ppm, corresponding to 22, 19, and 16 times the current market capitalization PE. Considering the company’s advantages in traditional channels and the rapid development of the assembly channel, it will give 32XPE in 2019, maintain a target price of 144 yuan / share, and maintain a “strong””grade.

Risk Warning: Channel expansion competition is intensifying, information system development is less than expected, and the real estate market is changing rapidly.