Main points of investment:
On June 1, 2017, Wen Wei Po reported that on the afternoon of May 31, Huajian Digital Chuang (Shanghai) Technology Co., Ltd. (referred to as "Huajian Digital Chuang"), a subsidiary of East China Construction Group Co., Ltd., a leading enterprise in the field of architectural design in Shanghai, was officially established and settled in Shibei High-tech Park.
On the same day, Huajian Group released the first generation of virtual design institute platform product-"Yunhuajian" Beta version, which shares 7000 architectural designers, 480 design teams, 960 medium and large projects and 10800 engineering design and consulting service resources and information, and is the country's first digital collaborative platform for architectural engineering design projects. At the same time, Huajian Group signed strategic cooperation agreements with Microsoft Corp (China) Co., Ltd., Autodesk Inc Software (China) Co., Ltd., and Shengyu Holdings Group respectively to carry out all-round cooperation in the fields of holographic technology MR mixed reality, Internet software service model, BIM+FM platform product development and so on. Huajian Group actively seeks digital transformation and will build an integrated service provider with engineering design consulting as the core and providing high-quality comprehensive solutions for urban construction during the 13th five-year Plan period. Hua Jian Digital Chuang will focus on building three major business engines, namely "Internet + Design", "Digital + Architecture" and "Virtualization + Engineering", and explore new technologies such as Internet +, Internet of things, cloud computing, big data, AI (artificial Intelligence) and other integrated technology industry solutions such as BIM (Building Information Model), FM (facilities Management) and GIS (Geographic Information system), and eventually develop into an Internet platform company in the engineering industry.
Huajian Digital Chuang, an Internet platform company engaged in engineering design, which is owned by Huajian Group, was officially established. The basic functions, operation mode and data characteristics of the Shanghai data Exchange Center have become increasingly clear, and big data's medium-and long-term planning has gradually taken shape. Jing'an District issued measures to promote the industrial development of big data, focusing on the big data industrial base of Shibei High-tech Park.
Investment advice. Benefiting from the construction of data trading centers and scientific and technological innovation centers, equity investment is expected to grow rapidly. The company is located in the "boutique park" integrated operators, service integrators and investors, and has laid out 3.13 square kilometers of Shanghai Zhabei North High-tech Industrial Park and 5.2 square kilometers Nantong Science and Technology City Industrial Park. At present, the economy of Shibei High-tech Park is growing at a high rate of 30% a year, and the proportion of producer services in the park has exceeded 90%. The company holds a total of 1.18 million square meters of equity. At the same time, in the next five years, the north high-tech park in the city can develop 2.6 million square meters, and Nantong reserves 4200 mu of land. In recent years, the company has increased its investment in venture capital business, and its future development is promising. We estimate that the company's EPS in 2017 and 2018 will be 0.13 yuan (excluding rights) and 0.17 yuan (after rights removal). Considering that the company is within the scope of the Great Zhangjiang River, it is expected to enjoy favorable policies such as the construction of Shanghai Science and Technology Innovation Center and data Trading Center (with market uniqueness) in the future, and at the same time benefit from the merger of Jing'an and Zhabei districts, we give the company 70 times PE in 2017 and a "buy" rating corresponding to the target price of 9.1 yuan in the next six months.
Risk Tip: the company is facing the risk that the lease and sale is not as expected.
