Mainly in construction business, with futures and other business.
The company's main business is the construction industry, and also engaged in futures business, kitchen cabinet manufacturing and tourism hotel business. At present, the construction business accounts for the largest proportion of the company's income, and the futures brokerage business is the company's main source of profit.
Deeply participate in the construction of airport new town and enjoy the policy dividend
The airport new city is an important strategic deployment of Sichuan Province and Chengdu, and it is an industrial new city developed and built by the comprehensive transportation hub of Chengdu's second international airport-Tianfu International Airport under Chengdu's "eastward" strategy. it is the "second main battlefield" for Chengdu to build a national central city that fully embodies the new concept of development. The management committee of the high-tech zone will widely adopt the PPP mode to carry out the municipal construction of the airport new town. According to the requirements of the management committee, the company, as the only state-owned listed company under the management committee of the high-tech zone, should fully and deeply participate in the construction of the airport new city, especially in infrastructure and other construction PPP projects.
The company plans to join with other domestic first-class construction central enterprises, financial capital and other institutions to invest in the establishment of PPP fund, we can see that the high-tech zone management committee gives great support to the company, so that the company has a certain say in the construction of the airport new town. After the establishment of the fund, the company can obtain construction business income, management fee income and later operating income. In the first quarter of 18 years, the company has won three large orders in the new town, with a total investment of 970 million yuan, accounting for 169.28% of the company's 17-year operating income. In addition, the market space for landscaping in Airport Metro is still large, and the company seizes the opportunity to set up Airport Metro Garden Co., Ltd with Airport Group and Sichuan Provincial Construction Institute, which has a strong advantage in the new city garden market. will improve the company's business performance.
There is room for the appreciation of land and real estate, and the futures subsidiary or the new opportunity subsidiary Beit futures has been impacted by the market recently, and its performance has declined. In order to enhance its competitive advantage, the company has increased its registered capital to 320 million and set up a risk management subsidiary to open up new profit sources. In recent years, the increase of futures varieties will help the company to expand its business scope and increase futures brokerage fees. If the recent listing of the three futures companies listed smoothly will become a new hot spot in the market, the shadow stock valuation of the company as a futures company is expected to be improved. In addition, the company continued to purchase land in 2005-08, with a book value of about 66 million. Only considering the land area disclosed by the company at present, the amount is about 780 million according to the market value. If it can circulate freely, there is a lot of room for appreciation.
Investment suggestion
The company is the only state-owned listed company under the Management Committee of Chengdu High-tech Zone, which has incomparable advantages over other construction enterprises. With the establishment of the PPP fund and its deep participation in the construction of the airport new city, the company will enjoy the policy dividend and the growth rate of the company's construction business will increase significantly in 2018 and 2019. It is estimated that the EPS of the company from 2018 to 2020 is 0.15,0.30,0.58 yuan per share, and the corresponding PE is 53.0,26.7,14.1 times respectively. The PEG of the company is 0.55, which is less than 1 and is in the middle and lower reaches of comparable companies. Taking into account the future growth of orders, low market capitalization and large room for performance improvement, the valuation has room for improvement, the company's target price is 10.63 yuan, corresponding to an 18-year PEG of 0.74. Coverage for the first time, giving a "overweight" rating.
Risk hint: the growth rate of fixed asset investment is declining rapidly; business development is not as expected.
