Beijing State Capital's high-end commercial real estate development operators have formed a two-wheel drive business model of real estate development and asset operation. The company is a subordinate enterprise of the State-owned assets Supervision and Administration Commission of Xicheng District of Beijing. at the beginning of its birth, the company developed Beijing Financial Street area and successfully built it into a national financial center. Since then, the company has gone out of Beijing and successively developed grade An office buildings and high-quality shopping centers in core cities such as Tianjin and Shanghai, with rich experience in the development of high-end commercial real estate. The company has established a two-wheel drive development strategy for residential development and holding business, and completed the layout of 17 cities in five major urban agglomerations across the country. Due to the epidemic and other factors, the company's revenue peaked in 2019 and returned to growth in 2021, with annual operating income of 24.2 billion yuan, which has returned to an all-time high of 92% in 2019.
Actively lay out the core urban agglomeration and have rich land reserves. Since the establishment of the layout strategy of the five major urban agglomerations in 2017, the company has actively expanded outward. In 2021, the sales amount reached 33.9 billion yuan, down 15.7% from the same period last year, but the sales area increased by 1.0% to 1.75 million square meters. It shows that the company can still achieve high-quality operating capacity of rapid turnover in the industry downward period. At the same time, the company's land acquisition strength rebounded 17.0% to 30.2%, by the end of 2021. The company has 2539 million square meters of land reserve, and the land reserve is sufficient.
Sitting on the core business assets, there is room for future growth. By the end of 2021, the company held properties in Beijing, Tianjin, Shanghai and other core cities with a rentable area of 1.06 million square meters, of which Grade An office buildings and high-quality shopping centers accounted for about 80%. At present, the commercial real estate market in Beijing and Shanghai is in strong demand and active. With the gradual improvement of China's public offering REITs system, the company's future growth space for holding business will also gradually open.
For the first time, the buy rating is given, with a target price of 9.10 yuan. We estimate that the EPS of the company from 2022 to 2024 is 0.61 pound 0.68pm 0.77 yuan. The company has many core assets, but the price-to-book ratio is only 0.5 times, which is seriously undervalued. With reference to comparable companies, we think that the company's price-to-book ratio can be repaired to 0.7 times, and the corresponding share price should be 9.10 yuan. Give buy rating.
Risk hint: the real estate market continues to decline, and the epidemic affects the development of the company's holding business.
