Zhitong Financial APP learned that China Merchants released a research report saying that the first Fushou Garden (01448) "highly recommended" rating, the target price of HK $7.80, investors are advised to actively pay attention. As a leader has more advantages in the integration of industry resources, and the current rich reserve of cemetery resources can support years of development, with the integration and optimization of M & A projects and the improvement of the structure of the old park, the revenue end is expected to maintain stable growth for a long time.
According to the report, the trend of China's aging population and changes in population structure have given rise to the demand for funerals; at the same time, the urbanization rate and cremation rate have increased year by year, promoting the growth of demand for commercial cemeteries. At present, the policy audit of operational cemeteries is becoming more and more strict, which raises the entry threshold of the funeral industry, and the leading advantage of funeral enterprises is more obvious. In recent years, funeral service institutions have been growing steadily all the year round. Under the background of strong supervision, the highly decentralized pattern of the domestic funeral industry is prominent, and there is a broad space for industry integration. Fushou Garden, as the leader of the private funeral industry, is in a leading position in terms of scale and profitability.
The bank mentioned that in recent years, the company has expanded in different places and settled in blank provinces through strategic mergers and acquisitions and is integrating regional industry markets, and its rich reserve of cemetery resources can support its development for many years. At the same time, thanks to customized services and scale effect in graveyard development, the company has created rich tomb-shaped tomb products at full price, leading the industry in the product end, cooperating with the business ecology of the layout of the whole industry chain, and developing steadily for a long time.