Company profile.
Broadcom Ltd and Jingfa Real Estate of Jiaotong University are subordinate enterprises of Xi'an Economic Development Group. Broadcom Ltd of Jiaotong University plans to replace all assets and liabilities with 100% equity of Economic Development Real Estate. At present, the preliminary plan for asset reorganization has been conditionally approved by the merger and reorganization Review Commission of the Securities Regulatory Commission.
The four advantages of economic development real estate.
Location advantage: the company's location advantage is mainly reflected in two points: first, Xi'an is the only core city in the "Guanzhong-Tianshui" economic planning area, is the policy support area; second, Xi'an real estate market as a whole is relatively healthy. Location advantage means that Xi'an 's investment will increase and the speed of urban construction will continue to accelerate; it means that Xi'an will receive economic policy support (investment, fiscal and taxation and financial policies). At the same time, the healthy development of Xi'an real estate market will also receive policy support.
Location advantage: benefiting from the rapid development of the Economic Development District and the northward relocation of the government, the property market in the north of the city has grown rapidly, and it has become one of the hottest sectors in the real estate market in Xi'an. The company's land reserve is located in the core area of Xi'an North Jingkai District, the west side of the new administrative center, with good profit prospects.
The potential resources are rich and the imagination space is huge: the company's potential resources: Changan Changning New area project, conservatively estimated that there are more than 1000 mu of land. Major shareholder Economic Development Group Resources: the Economic Development Group cooperates with the Lintong District Government to develop and build Lintong New area (planned area of 30 square kilometers), and will build major infrastructure and public supporting projects in the new area. The actual controller of the resources of the management committee of the Kaikai District: 31 urban village renovation projects, with a land area of 4680 mu, have been demolished and relocated.
Valuation advantage: at present, the stock price of 17.42 yuan is 11.2 times and 7.7 times the 10-year and 11-year dynamic PE respectively, while the 10-year and 11-year dynamic PE of the industry is 16 times and 12 times respectively. In addition, the company's 2010 NAV revaluation of 18.25 yuan per share, with a high margin of safety.
Investment advice.
The company has obvious advantages and huge room for development. And the company is a rare listed company with "four excellent" companies with "policy support, performance support, undervaluation, huge space for development and imagination", given a "buy" rating. The target price within one year is 25 yuan per share.
Risk factors.
Asset restructuring approval has not yet been obtained, the real estate market system risk.
