The actual controller of Tsuhama's development is Teda Group. At the beginning of the listing, the company's business was scattered, and no leading industry with core competitiveness was formed. In 2003, the company began to gradually divest businesses with poor profitability and unrelated to the main business through equity transfer and sale methods, establishing a development strategy based on industrial real estate and focusing on commercial and residential real estate. The 2004 report shows that the company's real estate assets already accounted for 89.4% of the company's total assets.
The company currently has about 170,000 square meters of industrial plants, which can bring in about 51 million yuan in annual revenue, and industrial real estate is basically not affected by national industry regulation policies. The operating risk is low, but project cash flow is slow, and scale expansion requires higher capital operation efficiency. In the context of increasing regional land value-added, the development and sale method can quickly return capital and expand new projects to improve capital operation efficiency. Therefore, the company's momentum for large-scale expansion of plant leasing business is not strong. In the future, the company will focus mainly on commercial and residential development and construction.
The company is operating the financial district phase I and II, the Xiqing Villa, Tianyuanju and Dagang residential projects. It has also reserved 52,000 square meters of residential land in the 250,000-square-meter commercial and development zone in Hangu. Compared with the company's share capital, project resources are still insufficient. The company's earnings per share are low, and it is difficult to evaluate it using the relative profit margin method. If the net market ratio of companies with similar business is selected for comparison, the company's price should be between 2.19 and 2.3 yuan. The current valuation is basically reasonable.
The company's poor profitability is due to historical reasons. Business fragmentation at the beginning of listing lacked clear development goals, and the impact of Binhai New Area construction on the company's actual operation is still at the conceptual level, but in the long run, after divesting some businesses unrelated to the main business, the company has become the most representative real estate enterprise in the development zone. In the context of the country speeding up the construction of the Binhai New Area and with the support of major shareholders, business operations are on a healthy track. The current profit situation does not fully reflect its regional advantages. If financing channels can be broadened in the future, the company's performance is expected to accelerate.
