Main points of investment
Established in August 1993, Hainan Expressway is one of the most important provincial listing platforms in Hainan Province. at present, the company's main business is real estate, transportation and service industry. The largest shareholder of the company is Hainan Transportation Investment Holdings Co., Ltd., with a shareholding ratio of 25.21%. The actual controller of the company is the Hainan Provincial Department of Transportation, which belongs to Hainan local state-owned assets management agencies.
With regard to future development, the company said that it would conduct an in-depth study on the industrial orientation of "Great Tourism and Great Health" and the development path of "the combination of industry and finance", and actively explore the integration project of large-scale tourism and health industry. integrate and optimize various elements such as hotel, tourism, real estate and health, and create a new comprehensive project model.
The real estate business has great intrinsic value and deep potential in the future. The intrinsic value of Hainan high-speed real estate business is huge, with 432000 square meters of tourism service land in Wanning City and 135900 square meters of industrial land in Qionghai City, as well as a 25% stake in Hainan Aerospace Investment Management Co., Ltd. the company's main project Hainan space launch site has a total area of 407.19 square meters. The long March 7 carrier rocket was successfully launched in Wenchang on June 25, and it is expected that the land will be increased in the future. In addition to the above projects, the company's existing projects are mainly located in Haikou City and Qionghai City, Hainan Province, with a saleable value of 2.023 billion yuan, which is expected to contribute about 780 million of the net profit in the next 4 years.
The company has a strategic stake in Hainan Aerospace Investment Management Co., Ltd., holding a 25% stake in the company. Hainan Aerospace Investment Management Co., Ltd. is the carrier of comprehensive strategic cooperation between China Aerospace Science and Technology Corporation and Hainan provincial government, responsible for the construction of aerospace theme park and Hainan space launch site matching area project. At present, Hainan Aerospace Company is hiring intermediary agencies to carry out the overall planning and design of the aerospace theme park project.
On June 17, 2016, the China Securities Regulatory Commission approved the IPO application of SAIC. The company currently holds 59.25 million shares of SAIC Group, accounting for 25% of the total share capital before the issue and 18.75% after the issue. The net profit of SAIC in 2015 was 69.5738 million yuan, which is about 51.5 times the average valuation of comparable companies in the same industry. Taking into account the premium of new shares, we think that the reasonable market value of SAIC after listing is about 45-5 billion yuan, and the reasonable value of the shares held by Hainan Expressway is 8.4-940 million yuan.
Investment suggestion: Hainan high-speed real estate has great intrinsic value and holds a stake in Hainan Aerospace Investment Management Co., Ltd., which is also responsible for the development of nearly 8000 mu of land in Wenchang. The long March 7 carrier rocket was successfully launched in Wenchang on June 25, and it is expected that the land will be increased in the future. The company participates in many high-quality companies such as Haiqi Group (which has been approved by IPO), Hainan Sea Control small loan and so on. We give the company an "overweight" rating.
Risk hint: sales in the real estate market are not as expected.