This report is read as follows:
Xiongan New area accelerates the integration of Beijing, Tianjin and Hebei, and the company is one of the core beneficiaries of the coordinated development of Beijing, Tianjin and Hebei. Kang Travel Empire has gradually taken shape, set foot in the vast blue sea field of the navigation industry, the large financial industry system has taken shape, and the valuation has a margin of safety.
Main points of investment:
Maintain the overweight rating and maintain the target price of 17.17 yuan. The company's sales exceeded expectations and increased its EPS to 1.26,1.67 yuan in 2017 / 18, with the target price corresponding to a multiple of PE13.6 in 2017.
Benefiting from the integration of Beijing, Tianjin and Hebei and the recovery of the third and fourth-tier property market, the company has entered a period of rapid expansion of scale and performance. With the increasing maturity of the company park, travel, navigation, finance and other industries, diversified business is expected to form a good supplement to the main business, and the company's performance is expected to take off.
We believe that the year of the company's adjustment has passed, at this stage is at a new starting point, the scale and performance are expected to continue to grow at a high speed, the potential for new business is endless, and the company should take off.
1) the company's performance is expected to usher in an explosive period. The company is rooted in Hebei, the layout of the national leader.
With sufficient reserves, rapid expansion and active access to land, and undertaking the historic opportunity of Beijing-Tianjin-Hebei integration, the value of resources will be comprehensively enhanced to provide support for scale and growth.
2) enter the travel + navigation industry, the "scenery" is unlimited, at the same time, the business of the industrial park is gradually developing, and the ability to obtain resources is further strengthened. Diversified business will not only provide new resource support for the main business, significant synergy, but also will accelerate to become the company's new main business, accelerate performance release and provide new profit points.
3) performance and valuation are expected to improve across the board. Davis double-click is just around the corner. On the one hand, the rise in house prices in the Beijing-Tianjin-Hebei region brought about by the integration of Beijing, Tianjin and Hebei has opened up room for the company's performance to rise, and the performance has entered an explosive period; on the other hand, the company's current price is only about 7 times of the 2017 PE, which mainly reflects the valuation of the company's real estate sector. And the company as the A-share "travel + navigation" only target, in line with the trend of consumer upgrading, the valuation is expected to usher in further improvement.
Expected catalyst: the expansion of diversified business is accelerated, and the growth rate of performance exceeds expectations.