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【长城证券】G穗珠江:处于上升拐点

長城證券 ·  Jul 18, 2006 00:00  · Researches

As an established listed real estate company, G Sui Zhujiang used to be small in scale and slow to develop. The period from 2000 to 2005 was a process of continuous restructuring of the company. The company is currently qualitatively changing in various aspects such as asset structure, investment capacity, talent pool, and profit growth points compared to the past. Taking the launch of a new project as an opportunity, the company stands at a turning point in history, and profits will increase dramatically in the next few years. The Pearl River New Town project is an extremely critical project for the company. It is a major landmark project in the company's development history, bringing huge value increases to the company. Guangzhou has successfully bid to host the 2010 Asian Games and is about to begin large-scale urban infrastructure construction. Guangzhou's economic and social development has also advanced by leaps and bounds, changing rapidly. The company faces significant development opportunities over the next few years. The company currently has a project reserve of 614,000 square meters, mainly distributed in the two cities of Changsha and Guangzhou. According to the current distribution and current status of the company's projects, the development strategy formulated by the company is: base in Guangzhou, expand Changsha; expand real estate development, consolidate real estate management, and strive to develop into an influential listed real estate company with excellent market performance in the Pan-Pearl River Delta region. The rapid growth of local real estate development enterprises in Guangzhou and the entry of foreign companies have intensified competition in the real estate market. Due to its small scale, the company's brand and management resources cannot fully play their role, economies of scale cannot be fully reflected, and there is no obvious competitive advantage. The company plans to implement targeted additional distribution, with the majority shareholder participation portion, and distribute the rest to strategic investors. The capital raised was mainly used to purchase 512 acres of land following the Changsha project and shares in the Hainan Sanya villa project, which is the majority shareholder. Judging from the comparison of price-earnings ratios, G-Sui Zhujiang began in 2007 due to a sharp increase in performance, and the price-earnings ratio had a clear advantage. Combined with the absolute valuation method, RNAV has a valuation value of 9.3 yuan per share, which is a significant discount from the current stock price of 5.03 yuan. Therefore, a recommended investment rating is given.

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