Main points of investment
Masters Construction is a leading construction enterprise in Jiaxing City, Zhejiang Province. The company has been operating continuously for more than 50 years since its inception, and has developed rapidly since the restructuring of township collective enterprises in 2001. In 2015, the company achieved an income of 4.425 billion yuan, a net profit of 98.52 million yuan, a total asset of 4.106 billion yuan and a net asset of 774 million yuan. The company's main business is the general contracting of housing construction projects such as residential and commercial real estate. The company is currently in a period of business transformation, and will actively expand to advanced models such as construction industrialization and design and construction general contracting in the future, and is expected to get more project opportunities under the promotion of PPP policy. At the same time, the company has filed A-share IPO. Considering that the company is undergoing business adjustment and transformation, we expect its performance in the next 1-2 years to be dominated by steady growth, with a net profit of about 1.2 / 140 million yuan in 2016 and 2017, corresponding to the current stock price PE of 8.1 ppm, with a low valuation level. Investors are advised to keep an eye on it.
The management team is highly qualified, and the company has complete business qualifications. The management team of the company all come from the first line of construction and have profound qualifications. The company is the most qualified construction enterprise in Zhejiang Province, and the contracts for housing construction projects that can be undertaken are not restricted.
Start the transformation in an all-round way and actively welcome the change. The company is gradually adjusting the customer structure, and actively arranging in the frontier areas such as construction industrialization and design and construction general contracting, and the transformation process has been started in an all-round way.
The popularity of the PPP model is expected to bring new business opportunities. At present, more and more government infrastructure investment is carried out through the PPP model, the company has strong business capacity and standard operation, and is expected to be favored by the government and get more project opportunities.
Risk hint: the progress of new business development is slow, and the RMB continues to depreciate.
