Ningbo City Investment Co., Ltd., the only listed platform company under Ningbo SASAC.
Ningbo Fidelity Co., Ltd. was founded in 1989 with a registered share capital of 1.445 billion yuan and total assets of 17.75 billion yuan. It is a state-owned listed company mainly engaged in residential development and commercial real estate operation and management, and also engaged in new building materials (cement). Ningbo Urban Construction Investment holding Co., Ltd., a subsidiary of Ningbo SASAC, became the controlling shareholder, holding 1.112 billion shares of the company, accounting for 76.95% of the total shares.
Ningbo withdrew from the city and set up a district to strengthen the construction of the central city. Haishu District expanded nearly 20 times to become the biggest winner.
Zhejiang Province has implemented the financial system of "province governing county" for a long time, and the financial and personnel rights of some county-level cities under Ningbo belong to the province. Economic fragmentation weakens the competitiveness of Ningbo city, the city center area is small and the financial resources are weak, and the process of urbanization lags behind. Recently, the Zhejiang provincial government officially issued the notice on the adjustment of some administrative divisions of Ningbo. Ningbo abolishes Fenghua city at county level and sets up Fenghua district of Ningbo city. After this administrative division adjustment, the area of Haishu District has increased by about 20 times, and the administrative division area is about 600 square kilometers (estimated), which has become the biggest winner of this administrative division adjustment, and the financial revenue of the district will increase significantly. Urban construction and project development will be further accelerated. The landing of this administrative adjustment is of great significance to speed up the process of urbanization, increase the construction of urban central areas, and accelerate the inflow of population from districts and counties to the central urban areas. As the only listed platform company controlled by Ningbo City Investment, Ningbo Fidelity is expected to play a more active role as a financing platform in the follow-up urban construction, and is expected to strengthen close cooperation with brother company Ningbo Haicheng Investment Co., Ltd.
The three major business sectors are balanced, real estate sales have picked up moderately, business operations have been stable, and cement profits have improved.
Ningbo has not been affected by the regulation and control policy for the time being. recently, the price of real estate sales has rebounded moderately, and the inventory has dropped obviously. the average sales price of commercial housing in the city has reached a new high of 15,000 yuan / square meter, and the period of elimination of commercial housing has been shortened to 5.62 months. the company is in the core business area of Haishu District, which has significantly benefited from the adjustment of administrative divisions and the inflow of population, and the retail business is expected to benefit from the consumer market at the end of the year. In the cement sector, policy efforts to promote infrastructure led to sales growth, while cement prices have risen significantly recently, and revenue and gross profit are expected to rise significantly.
It is estimated that the revenue growth of Ningbo Fidelity from 2016 to 2018 will be about 62.78%, 10.63%, 18.26% and 0.33 / 0.28, respectively, for Ningbo Fidelity. Corresponding to the 12-month target price of 18xpxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Risk hint
1 the commercial real estate faces the huge impact from e-commerce and the competition from the rapidly developing commercial complex in the surrounding area; 2 the competition in the residential real estate industry intensifies, and Ningbo is at risk of being listed in the list of regulation and control; 3 there is still excess production capacity in the cement industry, and it is uncertain whether the price increase can be sustained.
