There are mainly two modes in the company's regional development: one is the commercial + residential model, the other is the industrial + commercial + residential model. Toloka project and Dujiangyan project emphasize the first mode, while Jishan Software Park and Yangzhou project emphasize the second mode.
Regional development projects can bring long-term and stable returns for the company. One is the stable income of the first-level land development, and the other is that in the follow-up secondary development, the company can obtain long-term stable costs, so as to expand the profit level. ① takes the first model as an example, the Torrega project can bring a steady profit return of 4-5 years for the company. In 2008, the company began to develop the northern region of Torrega. Considering that the 2007 sales will begin to be delivered after 2008, we expect the project to bring a stable source of profits to the company in 2008-2011, with an average annual profit of about 0.15 yuan. ② takes the second model as an example, Jishan Software Park is currently entering the first phase of project sales, and subsequent projects drive commercial and residential layout for industrial construction, with a construction area of about 6 square kilometers, which is expected to bring profits around 2010.
The successor project of regional development is stable. ① Nanjing Metro Holdings 55% of Yangzhou Guangling New Town project, the planned area of 11 square kilometers of Guangling Industrial Park has entered the start-up stage, the company will receive a stable return of 8% from primary land development, we estimate that it can contribute about 0.02 yuan per share; if we participate in the follow-up secondary land development, it is expected to bring a profit return after 2010. ② Nanjing Metro holding Dujiangyan Metro Development 100% stake, mainly commercial + residential model, covers an area of about 540mu, currently mainly for preliminary work, is also expected to generate profits after 2010. If confirmed over a period of five years, we estimate that the average annual profit is about 0.05 yuan.
The environmental protection industry is another stable source of profit for the company, and it is complementary to regional development. At present, ① 's garbage power generation project steadily contributes about 30 million yuan to operating profit. ② waste power generation, sewage treatment, greening and other services are conducive to the improvement of the overall ecological environment quality in the process of regional development. At present, in addition to participating in the above-mentioned environmental protection industry in Zhongxin Eco-city, the company will also have the opportunity to inject this model into other regional development projects.
The company's above-mentioned regional development model is expected to continue to expand to second-and third-tier cities. Although the financial equity investment will bring the volatility of the company's performance in 2008, and the profit process of the Zhongxin Eco City project can not be accurately predicted, considering the profit situation of regional development, our company raised its earnings per share in 2008, 2009 and 2010 to 0.37 yuan, 0.52 yuan and 0.56 yuan, and maintained a short-term "wait-and-see" and long-term "recommended" investment rating.