Main points of investment
Event: sunshine shares was allowed to issue 800 million yuan of corporate bonds to qualified investors in private. At present, the first phase of the issue has been completed, with a scale of 400 million yuan, a maturity of three years, and a coupon rate of 8.1 percent.
The cost of capital for interest-bearing liabilities fell further. The bonds raised in the current issue of Sunshine shares are mainly used to supplement working capital and repay loans from other financial institutions, and the specific use will be determined according to the company's capital needs and other actual conditions. The company also has some high-interest loans before. After the issuance of corporate bonds, the company's working capital has been further replenished, and some stock high-interest loans can be replaced, which will help the company to save financial costs and reduce the cost of capital for interest-bearing liabilities.
The risk-free rate of return continued to decline, and the value of commercial properties held by the company increased significantly. Benefiting from the continuous decline in the risk-free rate of return, the value of commercial property has increased significantly according to the discounted cash flow method. All the commercial properties held by the company are located in the core first-and second-tier cities, with a high rental rate and a stable rental income of 200-300 million yuan every year. From the accounting value, the investment real estate held by the company is worth 5.041 billion yuan, but the real intrinsic value is close to 7 billion yuan.
The margin of safety of the company is sufficient, and the real value of the company cannot be concealed by the termination of reorganization. Our previous series of reports one based on the book value of the company's investment real estate to calculate RNAV, because the company's book value estimate is more conservative, so the previous RNAV estimate is more conservative. If we instead use the discounted cash flow method to revalue the company's expected rental income in the future, we estimate that the company's real RNAV is 6.34 billion yuan, equivalent to 8.50 yuan per RNAV per share, and the current stock price is 28% discount to RNAV. The margin of safety is sufficient.
Investment advice: sunshine shares focus on commercial real estate development and operation, bring rich profits through the development of the whole industry chain, commercial properties are mainly distributed in the core first-and second-tier cities. The company's share price is 8.50 yuan per RNAV, and its current share price is significantly lower than that of RNAV. The company holds a large number of high-quality commercial properties, which will bring rich rental income and property appreciation for the company. Sunshine shares extremely strong margin of safety, restructuring termination can not conceal the real value, maintain the "overweight" rating.
Risk tip: property sales fell sharply.
