Gelonghui, November 29丨First Shanghai released a research report, according to estimates, the development business NAV of Green View China Real Estate (0095.HK) is about 23.1 billion yuan. In terms of investment properties, assuming stable and mature operation of existing operating properties as well as the construction industry, the estimated increase in valuation is estimated to be about 6.4 billion yuan. After considering the net debt, the company's diluted NAV was HK$7 per share. Based on the phased development and pre-sale of the Baishizhou project and the gradual transformation of other high-quality old renovation projects, the company's overall scale and profit level will leap forward. The target price is HK$2.10, giving it a “buy” rating.

According to the research report, as of the first half of 2022, the company currently has more than 16 million square meters of land reserves, mostly located in Tier 1 and 2 cities such as Shenzhen, Zhuhai, and Hong Kong to support the company's development over the next 10 years. Among them, the Baishizhou project has a total planned area of about 3.58 million square meters, which is conservatively estimated to contribute about 150 billion yuan. According to the progress of construction, it is expected that sales will begin in mid-2023. At the same time, the research report said that the company earlier introduced a capital injection of about 2.3 billion yuan from Vanke, which will help further strengthen the company's short-term liquidity and enhance project safety. As of mid-2022, the company's debt has been settled steadily, and the refinancing plan is progressing smoothly. The Baishizhou Project Group has granted 20.7 billion dollars in special credit, which is conducive to safeguarding the development and construction of the Baishizhou project.

According to the research report, although the company's short-term performance is subject to fluctuations in the carry-over cycle of old reform projects, considering that in the future, with the entry of the Baishizhou project into the market, the company's profit growth will be in a steady process of improving. The bank expects sales for the full year of 2022 to be the same as last year, providing a guarantee for the company's short-term performance.