Core viewpoints
Jing'an core state-owned enterprises help Shanghai to build a scientific and technological innovation center. The company is the only high-tech park enterprise under the State-owned assets Supervision and Administration Commission of Jing'an District, which is strongly supported by the development strategy of the district government. The output intensity of land profit per unit of Shibei High-tech Park ranks second among 108 parks in Shanghai, second only to Waigaoqiao bonded Park. The Shanghai data Exchange Center was established in the park last year, and the company also has a state-level science and technology business incubator, Juneng Bay, to create a good environment for innovation and entrepreneurship, so that high-tech enterprises can gather in the park.
The location advantage is obvious, the property assets will face the revaluation. The park is the nearest high-tech industrial development zone to the center of Shanghai, with convenient transportation network and offshore traffic conditions. The park benefits from the merger of Zhabei Jing'an District and the rapid appreciation of property assets in the former Zhabei District. In 2015, hot spots in the Zhabei soil auction market frequently appeared, and the premium rate increased. The demonstration effect of "Jing'an House" will lead to the rise of house prices and rents around the high-tech park. The value of the high-tech park property held by the company will have the opportunity to be revalued, and it is expected that the sales price of property assets in the park will reach 12% CAGR in the next 3 years.
With the upgrading of the business model, equity investment has gradually entered the harvest period. Through its incubator Ju Neng Wan Company and volcanic Stone Equity Investment Fund, the company quickly reserves a large number of equity of start-up enterprises, constructs an enterprise life-cycle investment system, and will gain income through equity transfer in the future. break the current business operation mode of renting and selling industrial carriers. Among them, Virgin Creative IPO is coming, and Shibei Hi-Tech holds 18.2% of its shares. If Virgin Creative is successfully listed and the company gradually reduces its holdings, the equity investment will gradually enter the harvest period.
Financial forecasts and investment suggestions
For the first time, the overweight rating is given, with a target price of 21.39 yuan. We forecast that the company's earnings per share from 2016 to 2018 will be 0.20,0.31 and 0.42 yuan respectively. The comparable company has an average valuation of 69X in 2017, so it gives 69X to the company, corresponding to the target price of 21.39 yuan.
Risk hint
The company's sales fell short of expectations.
The project rental rate of the company is lower than expected.
The return on investment in start-ups is lower than expected.