Core ideas:
Enterprises with old benchmarking, stick to it and move forward
Hubei Fuxing Technology Co., Ltd., formerly known as "Hanchuan Steel Wire Rope Factory in Hubei Province", was restructured on June 8, 1993. A joint stock limited company was established by directional offering. In June 1999, the company was listed on the Shenzhen Stock Exchange. In 2001, the company invested to set up a holding subsidiary, Fuxing Fitch, to enter the real estate industry. As of the first half of 17 years, the company has total assets of 44.27 billion yuan and net assets of 9.68 billion yuan. Many years of real estate development experience, especially the deep participation in the development and construction of urban village projects, has reserved a large number of high-quality marketable resources for the company.
Go out of Hubei and look at the whole country
In the past 14 years, the company has not obtained any land reserves in the open market, and has not seized the opportunity of the liberalization of capital market financing to complete its expansion. 17 years is a year of change in the company's attitude. since the second half of the year, the company has shown a strong demand for scale growth, the expansion of land in other places to increase sales growth, and put forward an equity incentive plan with a target of 20 billion in 2019. At present, the equity incentive plan has been approved by the general meeting of shareholders. In terms of project expansion, enter Shenzhen to obtain commercial projects, at the same time layout Chengdu, start the Phoenix Valley old-age industrial base, land prices have a strong competitiveness. Since the beginning of 18 years, the company's Chengdu and Beijing projects outside Beijing will become a new sales growth point.
It is estimated that the EPS for 17 and 18 years will be 1.11 yuan and 1.44 yuan respectively, maintaining a "buy" rating.
In terms of valuation, by the middle of 17 years, the reserve size of the project on hand reached 7.73 million square meters, and the net added value of equity was 10.7 billion yuan. Plus the company's net assets of 9.68 billion yuan at the end of 16, the total NAV scale was 20.4 billion yuan. Regardless of this fixed increase plan, the NAV level per share is about 21.50 yuan per share. According to the latest closing price, the discount rate is as high as 41.76%. With the acceleration of the pace of performance release, the company's value will also increase.
Risk hint
Sales are greatly affected by the policy of Wuhan, and there is uncertainty in the progress of foreign project development in Hubei Province.