The company is a leading developer and supplier of large-scale commercial logistics centers in China. As of July 31, 2013, the company has simultaneously opened eight commercial logistics center projects in six provinces and autonomous regions of China, six of which are large commercial logistics centers. According to the data of Savills, as of the same day, the company ranked second in China in terms of the number of large commercial logistics centers, while according to the estimates of large commercial logistics centers and the total uncompleted construction, the company ranks third in China. As of the same day, the company has a total land of 7.5 million square meters.
The company is in charge of
(1) occupy a leading position in the market for the development of China's large commercial logistics center; (2) a successful business model, focusing exclusively on small and medium-sized enterprises and an attractive market position; (3) the company's strategic positioning can fully grasp the major market opportunities and the strong support of the government; (4) acquire a large amount of expensive land at a competitive cost; (5) strengthen the development and implementation of large projects (6) the management of the rich is supported by the strong support of the investors of the leading institutions.
Overview of the industry
In recent years, thanks to the continued growth of the economy, the demand of China's commercial property industry has increased steadily. According to the data of the State Statistics Bureau, the complex annual growth rate of commercial real estate investment between 2007 and 2012 was 27.3%. The annual growth rate of the construction of real estate projects is 20.1%, the complex annual growth rate of completed new commercial real estate projects is 10.9%, the compound annual growth rate of sold real estate projects is 10.8%, and the average annual growth rate of commercial property sales is 9.3%.
Since 2007, China's total commercial real estate under construction and completed industrial and commercial real estate have enjoyed strong annual growth, with the performance of the third-and fourth-tier cities being the most outstanding. The proportion of commercial real estate under construction in third-and fourth-tier cities has increased from 48.8% in 2007 to 60.4% in December 2012.
Between 2007 and 2012, the growth rates of sold real estate properties in third-and fourth-tier cities were 72.6% and 98.3%, respectively. In 2012, three-and four-tier cities accounted for 68.0% of the total sales of noodles sold in the year. The price of commercial real estate in all cities has been rising steadily since 2007. From 2007 to 2012, the average annual growth rate of sales in third-and fourth-tier cities was 10.8% and 10.8% respectively, which was basically the same as that in first-tier and second-tier cities in the same period. In 2012, the average sale of commercial real estate in first-tier cities was 18650 yuan ╱ square meters, while that in second-tier cities was 11831 yuan ╱ square meters, that in third-tier cities was 8004 yuan ╱ square meters, and that in fourth-tier cities was 6793 yuan ╱ square meters.
The merchant logistics center is a market where a large number of merchants or merchants gather in an organized way to display and sell goods. According to the data of Savills, China's commercial logistics center market developed rapidly between 2000 and 2011. During this period, the total area of business logistics centres has more than doubled, and the total sales volume of merchants has increased more than fourfold.
During the period from 2008 to 2011, the annual growth rate of total annual sales of merchants was 16.1%. In addition, the growth rate of construction area is faster than that of the total number of commercial logistics centers, so it can be seen that large-scale commercial logistics centers have been established one by one during this period. Over the past few years, China's growing demand for durable and non-durable consumer goods, building materials and other industrial products has promoted the development of commercial logistics centers.
According to the data of China's State Statistics Bureau, China had more than 80000 commercial logistics centers at the end of 2011. In terms of the type and size of commercial logistics centers, the business of commercial logistics centers in China can be highly dispersed. According to the type of products sold, merchant logistics centers can be classified as "integrated" 2 or "professional". The multi-merchant logistics center specializes in selling a single category of goods for small scale, such as agricultural products, commodity products, hardware, building materials and ceramics.
China's Commodity Trading Market Statistics Annual report 2012 defines the distinction between "integrated" and "specialist" commercial logistics centers. In 2011, the total number of specialist logistics centers and the total annual sales volume accounted for 73.0% and 80.4% of the market, respectively. From 2008 to 2011, the annual growth rates of total sales of merchants in integrated and specialist business logistics centers were about the same, with an annual growth rate of 16.2% and 16.0%, respectively.
Profit ability and duty number
From 6.430 million yuan, or 70.4%, in the six months ended June 30, 2012, to 1.898 million yuan in the six months ended June 30, 2013, mainly due to the fact that the people's income in the six months ended June 30, 2012 was reduced from 6.397 million yuan to 1.872 million yuan in the six months ended June 30, 2013. The operators mainly come from the independent transaction exhibition area of the Yulin merchant logistics center, the consumer logistics center and the retail logistics center, as well as the joint transaction exhibition area of the retail logistics center. Gross profit increased from 2.991 million yuan, or 68.9%, for the six months ended June 30, 2012, to 9.30 million yuan for the six months ended June 30, 2013. The company registered $1.932 million for the six months ended June 30, 2013 and $885 million for the six months ended June 30, 2012.
Collection purpose
About 90 per cent (or about HK $1425.2) of HK $15,3866 million (calculated at HK $2.15 per share) from this collection will be used for expenditure related to future development activities, including (I) projects under construction and outstanding projects under development, and (ii) investment in other development projects under the Framework Agreement, including funds for the collection of land use rights. And about 10% (or about HK $158.4) will be used for financial assistance and other general business operating purposes.
Valuation
According to the IPO HK$1.85 to 2.45, Yide International's 2012 price-to-earnings ratio is 26.4-35.0 times, and the price-to-earnings ratio is 2.2-2.5 times. Among the similar shares, 1668.HK has a price-to-earnings ratio of 5.02 times and a price-to-price ratio of 0.8 times. Yide International valuation is obviously high, but the company said that as of December 31, 2013, it will distribute no more than 50% of the core profit to the stock market, coupled with the recent new stock market performance, so it will be speculative.
Negative factor
(1) rely on China's economic growth; (2) limited economic history; (3) be vulnerable to changes in relevant government policies and measures of China's real estate industry; (4) be highly regulated and regulated by a large number of Chinese national and local laws and regulations; (5) be subject to the impact of the peaks and troughs of property delivery plans. (6) the impact of the peak and trough of the property delivery plan is significant; (7) the land developed by the logistics center project of the partner may not or may not be available in a commercially acceptable manner; (8) the failure to obtain any preferential regulatory treatment (such as government assistance and preferential collection treatment) for the project in the future may have a significant adverse effect on services, operating conditions and business performance. (9) the development and business logistics centers in China's limited cities are easily affected by the supervision and economic conditions of the areas concerned.
