Main points of investment:
The company is the local leading enterprise in Guangxi department store industry, with the advantage of scale.
The extension expansion of the company's fund-raising projects is conducive to the improvement of the scale.
The company's Nanbai Building is worth 2 billion yuan, supporting the company's market capitalization.
Summary of the report:
The company is a local leading enterprise in Guangxi department store industry. The company is the largest commercial retail enterprise in Guangxi, mainly operating department stores, and has opened a number of department stores in Nanning, Yulin, Guigang and other places, involving theme department stores, home appliances and supermarkets.
The reform of the company's state-owned equity is over, and the ownership structure is stable. Nanning Peining Asset Company, the major shareholder of the company, had planned to sell all its shares in the company and withdraw from the company's operation, bringing about the management turmoil of the company. After the equity restructuring, the increase of major shareholders' holdings and private placement, the major shareholder Nanning Peining assets Company regained effective control over the company and stabilized the company's operation.
The company takes the fund-raising project as the core and launches a new round of extension expansion. The company collects and raises funds to build the World Trade Center West Shopping Center, and cooperates the Hezhou far East International City project through management and export, laying the foundation for the company's "368" strategy at an early date.
There are difficulties in raising the company's gross profit margin and controlling expenses, which will put pressure on net profit. Due to the lack of strong brand support and the high proportion of home appliance sales, the company's gross profit margin is lower than the median of the industry; the personnel burden caused by the company restructuring and the increase of sales rates brought about by competition lead to difficulties in cost control.
The company's Nanbai Building is worth 2 billion yuan, supporting the company's market capitalization. The construction area of Nanbai Building is 80,000 square meters, and the overall property value is about 2 billion yuan. At present, the market capitalization of the company is only 2.614 billion yuan, and the premium rate relative to the property value is only 131%, which does not fully reflect the premium of the company's operating capacity, and is underestimated to a certain extent.
Profit forecast and company valuation. From 2012 to 2014, the EPS of the company was 0.12,0.14,0.15 yuan respectively, with a neutral rating for the first time, with a target price of 5.20 yuan.