The China-Singapore cooperation project landed in Chongqing, which is beneficial to local enterprises in Chongqing in all aspects. The China-Singapore (Chongqing) strategic connectivity demonstration project is the third inter-governmental cooperation project between China and New Zealand after Suzhou Industrial Park (1994) and China-Singapore Tianjin Ecological City (2007). The previous two China-New Zealand cooperation projects have played a very significant role in promoting the economic development of Tianjin and Suzhou. Taking Suzhou Industrial Park as an example, by the end of 2014, there were more than 5000 foreign-funded enterprises in the region. The output value of the park exceeded 200 billion yuan in that year. The establishment of Suzhou Industrial Park has greatly promoted Suzhou, which is still in the middle and lower reaches of Jiangsu economy in the 1990s, to become the leader of Jiangsu economy. The arrival of the China-New Zealand cooperation project in Chongqing may become one of the greatest benefits since Chongqing has been directly under the Central Government. The key areas of this cooperation project include, but are not limited to, financial services, aviation, transportation logistics and information and communications technology. We believe that Singapore's mature innovative development model will promote the transformation and upgrading of Chongqing's modern service industry. Chongqing local enterprises are expected to usher in historical development opportunities.
Caixin Group, a major shareholder of Guoxing Real Estate, has a heavy layout in Chongqing, with outstanding local competitive advantages, and will fully benefit from the landing of the China-Singapore cooperation project in Chongqing. Guoxing Real Estate, as its only listed company platform, will also usher in significant benefits. Caixin Group is a large local enterprise group in Chongqing, focusing on real estate, finance and environmental protection, with municipal engineering construction, actively promoting capitalization operation and mining investment, and has strong local competitive strength. Will fully benefit from the landing of the China-Singapore cooperation project in Chongqing. Guoxing Real Estate, as the only listed company platform under it, will usher in a good opportunity for development. after the completion of the fixed increase in September, the shareholding proportion of major shareholder Caixin Real Estate (wholly-owned subsidiary of Caixin Group) has increased from 29.90% to 59.65%. The absolute holding of Guoxing Real Estate has been realized. In the future, the strategic position of Guoxing Real Estate as the only listed company platform of major shareholders will continue to be strengthened: financial business. Caixin Group has successively participated in and invested in a number of financial enterprises, with an equity investment of nearly 2 billion yuan. In addition, Caixin Real Estate planned to sell a 24.09 per cent stake in Southwest Securities at a price of no less than 6.85 billion last year, a sign of its strength. In addition, the strong soft power of Guoxing Real Estate will also ensure that the company will fully benefit from this great benefit. The deep networking strength and far-sighted strategic layout of the core management team of major shareholders give the company strong local competitive strength in Chongqing. Ensure that the company will fully explore and grasp the many development opportunities in the future promotion of this project, and realize the expansion and strengthening of the listed platform.
Investment suggestion: the landing of the Sino-Singapore cooperation project in Chongqing brings great benefits to local enterprises, Guoxing Real Estate has obvious local competitive advantages, and its rich resources and strong soft power ensure its full grasp of this position. we are optimistic about the rapid development of major shareholders and continued strong support for listed companies. The company's EPS is expected to be 0.37, 0.47 and 0.55 yuan in 2015, 2016 and 2017, respectively, with a corresponding PE of 52, 41 and 35 times, maintaining a "buy" rating.
Risk hint: future sales fall short of expectations.