In 2013, Wanda's income and shares should account for 1.35 billion and 1.9 billion Hong Kong dollars, down 51% and 18% compared with 2012.
Hengli City, the newly received Duodun project and the West Guilin Wanda Market project are the three projects that the company is working on, of which Hengli City is the main source of revenue for the company.
At the end of 2013, the net cash of Wanda's commercial land reached 191 million, while the total administrative regulations and regulations reached 1.83 billion and 1.64 billion respectively, and the ratio of obligation rights and interests reached 303% of the total population. Of course, the company has its own fund to meet the needs of project development and development. At the end of January 2014, the company raised 2.47 billion Hong Kong dollars through a rights issue, while its equity increased by 30% to 3.71 billion shares, thus bringing the face premium to more than 2.6 billion, showing a cash level.
On 5 June, Wanda Commercial property and Wanda Hong Kong set up a joint venture company, "Wanda Island", to develop real estate services on the continent. The first project in Wanda Island was the Spanish hotel in the Spanish capital, Chandry. Wanda Island will become the focus of development and source of income for Wanda's commercial land in the future.
The convenience of financing is precisely the main purpose of Wanda Holdings Hong Kong listed companies. In the future, Wanda's commercial land will raise funds through the development of foreign coupons and private funds, and there are significant differences in financing efficiency and financing costs. In the direction of business, the company focuses on the development of commercial property in southern China in the short term, and continues to expand overseas at the same time. In addition, we do not rule out the possibility of capital injection from Wanda in the future.
Our views.
In the short and medium term, the focus of Wanda's commercial real estate is on how to balance the investment in domestic and international financial resources, the financing of overseas operations, and the stability of the financial flows of existing mature assets. We believe that the company needs a certain amount of time to complete the service location, resource allocation and stable cash flow collection.
Make a suggestion
We believe that from 2014 to 2015, Wanda Industrial Land is in the process of sustaining capital investment and the cash flow is limited, and Hengli City will still be the main source of income in this year. Spain and Guilin Wanda are expected to generate sufficient sales cash flow in 2016. In addition, the continued financing may result in a negative impact on earnings per share. From our point of view, the financing value of the company is higher than the investment value in the short and medium term. We give Wanda property a "neutral" grade of HK $2.6 for 12 months, which is equivalent to 8 times the 2016 forward price-to-earnings ratio.