Main points of investment:
We will strengthen the layout of first-and second-tier cities, initially form a national layout, and have abundant reserves on hand. The company has a land area of 2.8282 million square meters and a planned construction area of 5.696 million square meters. Since the second half of 15 years, the company has actively strengthened the layout of key first-and second-tier cities and continued to promote national layout. The business characteristics at the group level will also assist the company's national layout.
Cinda listed to break the shackles of cooperation between the company and the group. In the early days of its establishment, China Cinda was subject to policy constraints and could not give full play to the synergy and linkage effect between the company within the group and Cinda Real Estate. China Cinda completed its shareholding reform in 10 years and successfully landed on the Hong Kong Stock Exchange in 13 years, indicating that China Cinda, which is equal to the main body of the company's market, has independent decision-making ability and is responsible for its own profits and losses, has lifted the shackles of internal cooperation. In the future, the branches and subsidiaries of the group can make full use of the advantages of customers, products, brands, channels, business capabilities and other advantages to achieve business network coordination, customer coordination, business development coordination.
China Cinda needs the real estate development platform of Cinda Real Estate, which has a broad space for cooperation. China Cinda's mode of operation of non-performing assets is divided into acquisition and disposal and acquisition and reorganization. In the two business development models, China Cinda mainly plays the role of value revaluation and risk reset, and guides the suppliers and demanders of funds to complete the transaction. China Cinda itself is not involved in the process of physical asset disposal. The physical asset disposal business is usually handled by its real estate subsidiary, Cinda Real Estate. The company has a strategic position in the group. According to the latest data, China Cinda's housing-related non-performing assets totaled 132.141 billion yuan, accounting for 47.49% of all non-performing assets, so it is imperative for the company to cooperate with the parent company.
The financing side, the land project side and the service revenue side adopt a three-pronged approach to help the company develop against the market. Financing side: the company can be based on the group's diversified financial platform and make full use of the group's capital resources and asset management experience to help the company acquire land; land project side: the company can achieve low-cost and leveraged land acquisition through internal related transactions; service income side: investment funds enjoy high returns and obtain trustee income, professional consulting income and capital construction income by giving full play to their professional advantages.
Investment rating and valuation: cover for the first time and give an overweight rating. We estimate that the company's operating income from 2016 to 2018 will grow by 24.7%, 13.9% and 15.6%. The net profits attributed to the parent company are 940 million yuan, 1.04 billion yuan and 1.15 billion yuan respectively, and the corresponding EPS are 0.62,0.68,0.75 yuan respectively. With reference to the comparable company's 16-year valuation, company and industry history PE, we give 10.5 times PE, corresponding to 16-year stock price: 6.51 yuan, RNAV estimates the price is 5.95 yuan, to provide marginal support, to give an overweight rating.
