Main viewpoints
With the help of Xi'an High-tech Zone to maintain rapid growth
The actual controller of the company, Xi'an Hi-Tech (Group), is a large state-owned enterprise under "one set of personnel, two brands" with the Management Committee of Xi'an High-tech Zone, and the company is the real estate listing platform under (Group). High-tech real estate, the controlling shareholder of the company, is the carrier of urban supporting and infrastructure construction under Xi'an High-tech Zone; the problem of inter-industry competition among real estate companies within the High-tech Group is advancing in an orderly manner.
Improve the cultural real estate system and promote fast turnover and equity cooperation
Adhere to the strategy of "based on Xi'an, consolidate Shanghai, expand Shenzhen and develop Tianjin". By the end of 2012, it is expected to have an equity construction area of about 100 square meters and a land reserve of about 1.4 million square meters (excluding Liangjiatan). The company also integrates cultural elements into product marketing, property, brand and construction to increase premium space; improve the three major product lines and open equity cooperation to speed up project turnover. Benefit from Samsung's settlement of land reserve in high-tech zone in South Korea opens room for appreciation
In 2012, Samsung of South Korea settled in Xi'an High-tech Zone, becoming the largest foreign-invested high-tech project in the west, and attracting more than 160 supporting enterprises. The Hi-Tech Group and the company are expected to share the supporting facilities and land consolidation opportunities of Samsung in South Korea, especially this year's key municipal project Liangjiatan (20 square kilometers). The company is also expected to seize the second-level development opportunities from the Baqiao Science and Technology Park, Xincheng District Happiness Road and other projects involved in the first-level development of the group, and open up the space for land reserve appreciation.
Investment suggestion
The company's projects are concentrated in second-tier cities such as Xi'an, where the property market bubble is small, and benefit from institutional dividends such as high economic growth, population inflow and Samsung settlement in South Korea. Recently, the company has actively innovated capital operation, improved diversified financing channels, opened equity cooperation, and accelerated turnover. It is expected that the company's settlement income will accelerate in 2012-2014, and is expected to achieve an increase of 14%, 33% and 35%. The corresponding EPS is 0.36 yuan / 0.47 yuan / 0.62 yuan respectively, and the corresponding dynamic PE is 11X/9X/7X. In the medium term, Hi-Tech Group will continue to promote inter-industry competition among internal real estate companies. Taken together, we propose to give the company a rating of "outperforming the market".