Tsuhama Development recently released its 2007 semi-annual report: in the first half of the year, the company achieved main business revenue of 646 million yuan, an increase of 33.96% over the previous year; achieved net profit of 35.1 million yuan, an increase of 36.32% over the previous year; and earnings of 0.03 yuan per share. The main reason for the increase in performance was due to good sales of the Binhai Financial Street Phase I and Phase II real estate projects and Margaux Manor real estate projects developed by the company.
Strengthen the company's main real estate business. During the reporting period, the company completed the procedure for acquiring 37.6% of the shares of Tianjin Jinbin Yadu Real Estate Development Co., Ltd. held by Shenzhen Yuehua Investment Group Co., Ltd. After the acquisition, the company held a total of 94.8% of the shares of Jinbin Yadu Company, which is conducive to strengthening the strength of the company's main real estate business, improving the company's asset structure, improving asset quality and business capacity, which is in line with the company's main business development strategy.
The project is progressing well. The company's current projects include Margaux Manor, Kin-Chin Homeland, Jinbin Tengyue Building, 860 acres of land development in Meijiangnan, 110,000 square meters of land development in the Development Zone, 250,000 square meters of land development at Hangu Amusement Port, etc., with a total project reserve of about 1.2 million square meters. Looking at the present, the company's development of the above projects is stable. In the second half of the year, while ensuring the timely completion and timely sale of existing projects, including Tianze Garden in Dagang, Pearl River New Town, and Chinatown, it will focus on promoting the commencement and construction of the 110,000 square meter living area project in the development zone, Hangu, etc., to make rational use of the company's existing land reserve resources.
The location advantage provides opportunities for development. The Binhai New Area is the focus of Tianjin's future development. With the inclusion of the “11th Five-Year Plan” development plan, the country will continue to increase its investment in the Binhai New Area and increase investment in infrastructure construction in the new area. Along with the gradual improvement of supporting facilities in the Binhai New Area, demand for real estate products in the region will also continue to grow steadily. As a core real estate enterprise in the Binhai New Area, Jinbin Development faces unprecedented development opportunities.
.. There was a marked increase in the positions of the top ten tradable stocks. Compared with the quarterly report, the number and proportion of the company's tradable shares held by institutions has increased markedly. Although the company has developed steadily over the past few years, the popularity of many institutions also shows optimism about the company's future growth.
Risk warning. Policy risks of countries continuing to regulate the real estate industry: competitive risk of increased competition in regional real estate markets; risk of fluctuations in the impact of company project settlement on performance.
Give it an “increase in holdings” rating. Based on the development progress of the company's projects and the steady growth of other businesses, we forecast the company's EPS for 2007 and 2008 to be 0.07 yuan and 0.15 yuan respectively. Since the Binhai New Area is entering a new stage of unconventional development, and the company's leading real estate in the region, future development is certainly worth looking forward to. We estimate that the average PEG of comparable listed companies in the real estate industry in 2008 was 1.44, and the company's PEG in 2008 was 0.98, which is significantly lower than the average of comparable companies in the industry. Therefore, the company was given an “increase in holdings” rating.
