Full of endogenous power, the development has entered a new chapter. The approval document for the company's non-public offering officially landed, and the major shareholders subscribed for an increase of not less than 14.92 yuan. After the completion of the fixed increase, the proportion of their shares will increase to more than 40%, and the interests of large shareholders and minority shareholders tend to be consistent. As the only listing platform for major shareholders, the development determination and support of major shareholders will be fully released, and the development is about to enter a new chapter. Maintain the company's overweight rating with a target price of 22 yuan, corresponding to an increase of 13.5 times PE before 2016.
Business release is accelerated and asset quality is excellent. The company's asset-liability ratio is only 9%, and the quality of core assets such as financial equity is excellent. The demand for urban expansion in Xingning City continues to grow, and the company actively participates in the first-level land development of the southern new town, and is expected to contribute an average annual land transfer income of 2.4 billion yuan in the next five years.
At the same time, it will also accumulate experience in PPP cooperation with the government to lay the foundation for obtaining a larger volume of first-class land development projects in the future. EPS is expected to be 1.63 and 2.05 yuan in 2016 / 17, with a growth rate of 255% and 26%, respectively.
There is plenty of room for growth and diversified development can be expected. Before the fixed increase, the market capitalization of the company is only about 5.7 billion yuan. After the fixed increase, the paper cash has increased significantly, opening up the space for the growth of the market value in the future. The participating companies are highly qualified, among which Yunshan Motor has entered the eighth batch of "vehicle purchase tax-exempt New Energy vehicle Catalog" of the Ministry of Industry and Information Technology; Dading Mining has paid a dividend of 59.103 million yuan, significantly improving the company's profitability. Given that the company has plenty of cash on hand, the trend of diversified development will accelerate in the future, the expansion of emerging industries is expected to push up the company's current low valuation, and the primary development business will boost performance growth. Davis double-click soon.
Risk hint: there is some uncertainty in the coordinated development of major shareholders and the first-level land development business.