I. Overview of events
Guangming Real Estate announced on November 28,29,30, 2018, the company won residential land in Shanghai Fengxian Nanqiao New Town, six land in Huzhou and residential land in Wuhan, respectively.
II. Analysis and judgment
Make efforts to acquire land at the end of the year and enrich the land reserve
Guangming Real Estate announced on November 28 that the company successfully won the Nanqiao New Town site in Fengxian District, Shanghai, with a land area of 42600 square meters, with a total land price of 1.228 billion yuan, and the company's equity ratio was 55%. This time, the land company has jointly carried out cooperative development with relevant local institutions in Fengxian, which will help to reduce the development cost. On November 29th, the company announced that the company successfully won six pieces of land in Huzhou, with a land area of 2189,000 square meters and a total land price of 1.351 billion yuan. it is the first time that the mature "urban village" model in Jinshan District and Fengxian District in Shanghai has been copied for the first time. The company announced on November 30 that the company successfully won plot P (2018) 107 in Wuhan, with a land area of 66800 square meters and a total land price of 405 million yuan. This land acquisition reflects the company's strategy of obtaining the land layout of the country's key cities.
The cost of financing is controllable and there are various channels.
On November 13, the company announced that the transfer of the ABS at the end of the purchase was approved, with a total amount of no more than 700 million yuan. On November 27, the company announced that all the funds raised for the second phase of the 2018 long-term limited rights medium-term notes (perpetual bonds) issued by the company have been received for a period of three years, with a total planned issuance of 325 million yuan and an actual total issuance of 650 million yuan. the coupon rate is 6.25%. The company relies on Guangming Group, has a strong ability to obtain financing, has various channels, and the overall financing cost is at a reasonable level.
Rely on Guangming Group to seek diversified development
On the basis of strengthening the main business and with the support of Guangming Group, Guangming Real Estate is striving to become a diversified development and operation platform, as well as a comprehensive group integrating real estate, investment, industry and finance.
III. Investment suggestions
Bright real estate profitability continues to improve, steady growth in sales, at the same time, cold chain logistics and other diversified business has more room for development. The company is actively expanding, with Shanghai as the core to expand to the surrounding hot cities. It is estimated that the company's EPS in 18-20 years will be 1.47,1.77,1.96 yuan, corresponding to 2.6pm PE 1.9times, and the company's highest, lowest and median PE in the past three years will be 71.3max 2.8max PE 12.2 times respectively, maintaining the company's "recommended" rating.
Fourth, risk tips:
The regulation and control of real estate continued to be tightened, and diversified development was not as expected.
