Description of the event
On the evening of March 7, the company issued a board resolution announcement announcing the establishment of Guangzhou Zhujiang Industrial Health Industry Management Co., Ltd. in a joint venture with Guangzhou Jianyuan Hospital Management Co., Ltd. The joint venture company has franchise rights for medical devices and medical treatment services, and its main business scope is old-age services and health management. Zhujiang Industrial holds 62% of the shares in the joint venture. The company's early research on the pension industry has finally been implemented into actual action.
Incident reviews
The layout of pension is in line with industry trends. The rapidly accelerating and irreversible aging of the population is nurturing a broad space for industrial investment. In recent years, medical, insurance, and real estate companies have extended their reach into the pension industry. Among them, the integration of real estate and old-age care has now become a hot transformation direction for many real estate companies. Pearl River Industrial's layout of real estate for the elderly is not an overnight event; this choice to cooperate with medical institutions is a strategic step.
The whole industry chain model of “real estate+healthcare” is worth looking forward to. The advance plan announced by the company is for United Jianyuan Company to establish a joint venture subsidiary. The latter is a wholly natural person owned company in Guangzhou whose main business is high-end medical consulting and hospital investment management. From the perspective of a joint medical company, Pearl River Industrial's development plan for the pension industry may not be a simple pension real estate. We have determined that the main purpose of Zhujiang Industrial and Jianyuan may be to use each other's medical management resources and combine the company's own real estate resources to create a pension model for the entire industry chain.
The real estate business is progressing steadily. Although the company's explosive growth from 2009 to 11 is over, steady growth in the real estate business can still be seen in the future. After a series of management and operational adjustments, the company has clearly accelerated the pace of land acquisition and financing in the past two years, and the sales scale has gradually increased. While we are deeply involved in residential real estate, the company's tourist real estate and pension real estate are also going hand in hand. Among them, in 2013, the company obtained the Hainan Wuyuan River Leisure and Tourism Resort project through equity investment and officially entered tourist real estate. The establishment of this joint company also marks the beginning of the company's pension real estate.
It may benefit from Guangzhou's state-owned enterprise reform. As the only listing platform under the Zhushi Group controlled by the Guangzhou State-owned Assets Administration Commission, in the context of a new round of state-owned enterprise reform and restart, the company is likely to achieve a breakthrough in major shareholders' support and institutional reform. It is also undoubtedly the subject of Guangzhou's state-owned enterprise reform.
Maintain recommended ratings. The current stock price is 6.62 yuan, and the RNAV valuation is 16 yuan. The value is as underestimated as the real estate sector. It is estimated that the company's EPS for 13 and 14 will be 0.95 yuan and 1.23 yuan respectively, and the corresponding PE will be 6.99 and 5.39 times, respectively, maintaining the recommended rating.
