Beijing airport economic core area and its cooperative industrial park have great potential for development. The company is the main body of Beijing Tianzhu Airport Economic Development Zone. The latter consists of two areas An and B, with a total planning of 6.6 square kilometers. In March 2014, Beijing Airport Economic Core Zone was approved to be established with a master plan of 178 square kilometers (the initial plan is 56 square kilometers, which is composed of the former Beijing Tianzhu Airport Economic Development Zone, the former Beijing Airport Logistics Base and the former Beijing Guomen Business District). After the establishment of the core area, the policy advantages of the Capital Airport, Tianzhu Comprehensive Free Trade Zone and Zhongguancun National Independent Innovation demonstration Zone will be superimposed. Great efforts will be made to develop air-facing modern service industries and strategic emerging industries, such as air transport, bonded logistics, headquarters commerce, industrial finance, cultural creativity, business exhibitions and so on. The development goal of the future core area is to promote the transformation and upgrading of the airport economic zone to the core area of the Capital International Aviation Center. In addition, the company also undertakes the development and construction of the surrounding areas of the core area, including: Zhaoquanying Town Project, Beixiaoying Town Project, Mulin Town Project, Longwan Town Project, Dasungezhuang Town Project.
The company is the only listed company in the air-facing economic park in China, and its industrial policy has obvious advantages. The company was established in March 2000 and is the only air-facing park listed company in China. In March 2004, the company was listed on the Shanghai Stock Exchange. Over the years, the company has carried out deep ploughing in the Beijing Airport Economic Core Zone and its cooperative industrial park adjacent to the Capital International Airport. the scope of business covers the development of the whole industrial chain of airport parks, such as park development and construction, leasing, construction, real estate development and property management, and promotes the region to move forward into Beijing's "airport city". The strategic goal of the company is to become the leader of China's airfront real estate. At present, the company belongs to five secondary development reserve projects, with a total equity construction area of 277000 square meters. In addition, the company also has a first-class land development project of 3900 mu in and around Beijing Airport Economic Zone.
The company will increase the introduction of CDF, which holds 16% of the shares, which is conducive to the company's development of equity investment business. In April 2015, the company plans to issue additional shares to CDF, raising a total of 600 million yuan to repay bank loans. After the completion of the fixed increase, CDC will hold 48 million shares of the company, accounting for 16%. CDF is mainly engaged in investment and investment management business. By the end of 2014, CDF had invested in more than 300 projects and managed assets of more than 120 billion yuan. Relying on the government background, brand credit, professional ability, customer network and other resource advantages of the China Development Bank, it currently has four major business sectors, such as new urbanization, industrial investment, overseas investment and fund business. We believe that the strong strength of CDF will help the company to develop equity investment business and industrial real estate expansion in the future.
Performance forecast and valuation recommendations: we expect that the company will achieve EPS of 0.18 yuan and 0.24 yuan respectively from 2015 to 2016, corresponding to RNAV of 20.03 yuan. As of November 30, the company closed at 14.38 yuan, corresponding to a PE of 79.9 times in 2015 and 59.9 times in 2016. Considering that the company is the main body of the construction of Beijing Aviation City and will benefit from the cooperation with CDF, we give the "buy" rating for the first time with RNAV 20.03 yuan as the company's target price for the next six months.
Risk hint: the industry faces two major risks: interest rate hike and policy regulation.
