Beijing Urban Construction (600266): Superior integration of resources for urban construction and housing

Beijing Urban Construction (600266): Superior integration of resources for urban construction and housing

Core Views Beijing Urban Construction Group’s official website disclosed that on the morning of November 7, the Beijing Municipal Party Committee and Municipal Government reorganized the merger and reorganization of four municipal management enterprises, announcing the implementation of the merger and reorganization of Urban Construction Group and Zhuozhu Group, and the free transfer of state-owned assets of Beijing Zhuozhu Group.Transferred to Beijing Urban Construction Group.

Beijing Urban Construction, as a listed platform that undertakes the Group’s primary and secondary development, and a pioneer enterprise in Beijing’s shed reform, gradually integrates and undertakes total high-quality resources, and strengthens the primary and secondary development market resource endowment.

Increase EPS for 2019-2021 to 1.

02, 1.

15.1.

27 yuan, maintaining the “overweight” level.

  The first-level development resources are abundant, and the consolidation of Beijing’s interior shed reform leader district. Beijing Zhuhai General Group was established in 1992 and is one of the construction leaders of the Beijing State-owned Assets Supervision and Administration Commission.

There are 8 first-level development projects in 2019Q1 (mainly located in Beijing and Tianjin), involving a reconstruction area of about 39.9 million square meters. The planned total investment is 132.6 billion yuan, the investment has been completed 45.7 billion yuan, and the income has been gradually realized., Gross profit 9.

5 billion.

Beijing Urban Construction is a listed company that undertakes the first- and second-tier development of the group and a pioneer enterprise in Beijing’s shed reform. There are 8 hand-shed renovation projects in 2019H1 with a total construction area of 6.88 million square meters and a planned total investment of 1034 megabytes. It is expected to be integrated after the reconstruction is completed.We will consolidate high-quality resources, consolidate the leading zoning reform in Beijing, and contribute to stable income while activating the linkage space.

  Beijing-Tianjin secondary development is expected to be the icing on the cake. In total, land development business is mainly Beijing affordable housing and commercial housing, which are mainly located in Beijing and Tianjin. In 2018, the land business achieved revenue of 12.9 billion (guaranteed housing 22).

500 million + commercial housing 106.

100 million), previously +66.

4%, sales of commercial real estate achieved 77.

600 million, +76 a year.

4%.

As of the first quarter of 2019, the total construction area of residential housing under construction was 125.

10,000 square meters, the total construction area of commercial housing under construction is 119.

40,000 square meters, commercial housing land reserve 73.

70,000 flat.

At the end of 2018, Beijing’s unfinished construction project reserves of about 4.5 million square meters. The integration of the group brought the company’s resources in the Beijing-Tianjin area to integrate resources.

  Equity investment has driven high growth, and investment and expansion efforts have increased. The revenue for the first three quarters of Beijing’s urban construction revenue was +38.

8% to 106.

600 million, net profit attributable to mother + 168 for ten years.

0% to 18.

The increase in performance was attributable to the increase in the carry-over of development business and the recognition of the revenue from the Huairou shed reform project.

800 million fair value change income, holding the listed company’s stock equity method to calculate investment income8.

4 billion.

The first three 杭州桑拿 quarters of development business achieved sales area of 49.

30,000 flats, -9 a year.

4%; realized sales amount of 100.

200 million, previously +9.

4%; supplementary soil storage 45.

50,000 square meters, +96 a year.

1%.

The company’s investment in investment has been strengthened, and the company’s sales are expected to continue to grow steadily.

  Primary and secondary development + diversification of equity investment, maintaining the “overweight” rating company’s third quarterly report is expected to continue growing growth, long-term net profit is expected to continue, we expect that the high growth in equity distribution investment will continue, and increase the return to motherhood in 2019-2021.Net profit to 19.

2, 21.7, 23.

900 million (previous value was 15.

4, 18.

0, 21.

1), corresponding EPS is 1.

02, 1.

15.1.

27 yuan.

  Refer to comparable companies for July 2019.

2 times PE estimate, we believe that after the reorganization is completed, the company’s first- and second-level resource endowment advantages will gradually develop and grow in the regional market, with growth expectations and a 2019 PE valuation of 8.

5-9.

5 times, target price 8.

67-9.

69 yuan (previous value was 10.

78-11.

76 yuan), maintaining the “overweight” level.

  Risk reminders: The scale of first-tier cities is strict; the first-level development and shed reforms increase the pressure on the capital chain; changes in the fair value of financial assets lead to increased performance; group reorganization and resource integration are uncertain.