AVIC Sunda (000043): Restructuring pricing in line with expectations
Event: The company recently issued an announcement to determine the transaction consideration for its shares issued to acquire China Merchants Property. The final appraisal price was 29.
90,000 yuan, corresponding to 杭州桑拿网 China Merchants Property’s 2018 net profit of about 20 times PE; after the completion of the issuance, the company’s total share capital is 10.
With 600 million shares, China Merchants Shekou will become the company’s largest shareholder, holding a total of 51 listed companies.
16% of the shares.
Reconstruction pricing is in line with expectations, and there is still room for improvement.
With reference to last Friday’s closing price, the new AVIC Sunda Property Management business corresponds to 34 times PE for 18 years; China Merchants Property promises that the net profit for 2019, 20 and 21 will not be less than 1.
15 megabytes, under conservative considerations, the new PE of China Aviation Sunda in 2019 is only 22 times, which is a space for mutual replacement with the leading property management 杭州夜网论坛 company in Hong Kong stocks.
Considering that the company is a rare high-quality property management target of A shares, the company has reason to enjoy the evaluation premium.
The tube area approaches 1.
500 million cubic meters, the property management leader set sail.
At present, AVIC Sunda has investment management area of 76.44 million and 70.82 million square meters, and the combined management area is close to one.
500 million square meters, and owns the dual genes of residential and institutional properties.
After the reorganization, as the only listed property management platform of China Merchants Group, the new AVIC Sunda will definitely receive its strong support. The company will fully benefit from the strong strength and diversified portfolio of China Merchants Group, and will be entrusted to manage four shopping malls.The only thing is the beginning.
Various factors have driven profit repair.
In 2018, the net interest rates of AVIC Property and China Merchants Property were 4, respectively.
9%, there is a gap in the net profit margin of listed property management companies.
With the completion of the reorganization transaction, the company will rely on China Merchants Group to improve the certainty of future scale growth. At the same time, the company will change the cost, brand center to the profit center of the subordinate housing companies, and use technology to empower and add value.The increase in per capita performance brought by the company, the company’s profit margin is expected to be repaired, the robe exceeded the original performance commitment target.
The progress of this profit repair has been verified many times in many Hong Kong stock listed property management companies.
Maintain the company’s buy rating, assuming that the reorganization is completed in 2019, and the performance of China Merchants Property is consolidated. It is expected that the company’s EPS in 2019, 2020 and 2021 will be 0.
91 yuan, corresponding to PE is 31, 22, 15 respectively.
Give the company’s property management business 25 times PE for 20 years with a target price of 18.
Risk warning: The profit repair is less than expected, and the incremental project delivery is too slow.