Backed by the Beijing State-owned assets Supervision and Administration Commission, the Beijing area is rich in high-quality resources: the predecessor of the Electronic City Group was Beijing Electronic City Co., Ltd., and the Beijing Municipal Government approved the "Beijing Electronic City Plan" in 1994. And approved the establishment of Beijing Electronic City Co., Ltd. as the main body to undertake the task of transforming the old industrial base of the electronic city. In 1999, with the approval of the Ministry of Science and Technology and the State Council, the old industrial base of Electronic City was incorporated into Zhongguancun Science and Technology Park; in the same year, the Management Committee of Beijing Electronic City Science and Technology Park was set up to work with the company. In 2009, Electronic City and Zhaowei Technology carried out asset exchange and issued shares to buy assets, and successfully reorganized and listed. "Electronic City shares" as an industrial real estate operator to the public.
At present, the largest shareholder of Electronic City is Beijing Electronics holding Co., Ltd., with a total stake of 47.61%.
The main park real estate has begun to expand actively in recent years: before 2013, the electronic city was in the stage of regional development, and the main park and commercial real estate projects were concentrated in the Jiuxianqiao area of Beijing. The company's cross-regional development stage was from 2013 to 2018, during which the company expanded to other regions such as Shuozhou, Tianjin, Xiamen, Kunming and Nanjing through brand building, model replication and science and technology industry agglomeration. export science and technology innovation park projects to the national region.
Positive strategic transformation to science and technology services: the company has focused on the field of industrial real estate for many years and has accumulated rich experience in industrial real estate development, construction and operation management. At the same time, with its own unique space resources, industrial resources, customer resources and other competitive advantages, the development scale of business sectors such as "science and technology innovation gathering", "smart city" and "science and technology city renewal" continues to grow. In recent years, on the basis of science and technology space services, we have continuously explored and developed science and technology incubation, science and technology finance and other scientific and technological innovation services, comprehensively promoting the strategic transformation to "science and technology services". Further increase the company's significant progress in the transformation of science and technology services, such as the active introduction of 5G and integrated circuit design industry, building industrial funds with Guoshou, and so on.
Sufficient reserves for projects under construction and proposed projects can effectively support future sales and income: by the end of June 2019, the company has a total construction area of 2.4513 million square meters for projects under construction and a total construction area of 899000 square meters for the proposed project. can effectively support the company's future development phase of sales and income carry-over.
Sufficient equity incentives demonstrate the confidence of management growth: on April 10, 2019, the company issued a draft stock option incentive plan, which intends to grant 11.186 million stock options to the incentive targets, accounting for 1.0% of the total issued share capital, of which 10.068 million shares are granted for the first time, accounting for 0.9% of the total share capital and 90.0% of the total stock options granted under the incentive plan. 1.118 million shares are reserved, accounting for 0.1% of the total share capital and 10.0% of the total stock options granted under the incentive plan. A total of 92 incentive objects were awarded in the first phase, including senior managers, core backbones and core business personnel, with an exercise price of 6.78 yuan per share. On June 15, 2019, the equity incentive plan was approved by Beijing State-owned assets Supervision and Administration Commission and is the first real estate enterprise under Beijing State-owned assets Supervision and Administration Commission to promote equity incentive.
Give the company a "recommended" rating: with the gradual settlement of the development and sales part of the company and the gradual rental of the self-owned part, and considering the sale of 4.039 billion yuan of asset packages involved in the proposal of the company to join the fund and the motion on the sale of assets to the fund by wholly-owned subsidiaries and related transactions passed by the shareholders' meeting on November 21, 2019, we estimate that the company's operating income in 1921 will be 24.76,46.42 and 6.449 billion yuan respectively. The net profit of homing is 3.64,4.76 and 651 million yuan, corresponding to PE 13.5X/10.3X/7.5X. Considering that 1) the company has many years of experience in park development and operation, 2) the asset layout and quality are high, 3) it is expected to further benefit from the reform of state-owned enterprises in the future, 4) equity incentives demonstrate confidence and the valuation is at a low level. We give it a "recommended" rating.
Risk hint: regulation and credit policies tightened more than expected, the prosperity of the industry continued to decline, and the effect of corporate expansion was less than expected.