AVIC Sunda (000043) Important Matters: Reorganization approved by SASAC for non-residential property management leading
The restructuring plan was approved by the SASAC, China Merchants has become the largest shareholder, and the leading property management company of central enterprises took shape. On September 10, AVIC Sunda issued an announcement that the company intends to purchase 100% equity of China Merchants Property by issuing shares to purchase assets.Reply of the State-owned Assets Supervision and Administration Commission of the State Council on Issues Concerning Assets Reorganization of AVIC Sunda Co., Ltd., the State-owned Assets Supervision and Administration Commission agreed in principle to the company’s overall plan for asset reorganization.
On September 4, China Merchants Shekou announced that China Merchants Shekou had completed the payment of cash to purchase AVIC Sunda Co., Ltd. 22 held by AVIC International Holdings Co., Ltd.
As of September 4, 2019, AVIC Sunda 22.
35% of the shares have been transferred to China Merchants Shekou. China Merchants Shekou (China Merchants Department) currently holds AVIC Sunda 22.
35% of shares, has become the company’s largest shareholder, China Merchants Group has become the actual controller of the company; China Aviation Technology Shenzhen (AVIC) holds AVIC Sunda 20.
62% of the shares, the company’s second largest shareholder; Shenzhen AVIC Development (Poly) holds AVIC Sunda.
17% of shares, the company’s third largest shareholder.
The company’s reorganization is progressing smoothly, and the leading non-residential property management leaders of central enterprises are gradually taking shape.
The reorganization pricing is full of sincerity, and the agency leaders and commercial giants have joined forces to jointly create a non-residential property management leader.
The price of 60 yuan / share issuance of shares to purchase China Merchants Shekou, Shenzhen China Merchants Real Estate held a total of 100% equity of China Merchants Property, the transaction price is about 29.
9 trillion; which promises a CAGR of 12-16% for the 19-22 year performance. Considering the expansion of the scale stability of China Merchants Property and the deterministic improvement of the net interest rate under the reform of physical efficiency, it is expected that the performance will be completed in excess of the probability; the purchase price corresponds18PE and 19PE are 20 times and 19 times respectively (if the 19-year performance growth rate reaches 30%, the corresponding variable is 15 times). Compared with leading estimates and considering their scarcity, the pricing is sincere.
After the completion of the transaction, 3 new shares will be added.
9.3 billion shares, with a total share capital of 10.
6 billion shares, the shareholding ratio of China Merchants rose to 51.
2%, becoming a controlling shareholder, the proportion of shares held by AVIC is 13.
0%, as the second shareholder, the proportion of Poly shares will reach 4.
5% is the third shareholder.
AVIC Sunda’s deep-cultivating property management system is rich in property investment services (70.82 million square meters of management area, residential and non-residential areas respectively).
9%), and has a large number of commercial properties with China Merchants Department, AVIC Sunda and China Merchants Properties have joined forces to build a leading 夜来香体验网 non-residential property management leader.
The combined performance is expected to increase in quantity and quality, and the property management performance in 19 is expected to exceed 4.
200 million, previously over + 36%. Currently, AVIC Real Estate and China Merchants Property Management area are 76.34 million square meters and 70.82 million square meters, respectively, which is +43 compared with the end of 18 years.
After the merger, the tube area reached 1.
4.7 billion cubic meters, becoming a leader in non-residential property management.
It is expected that the resource support of the subsequent investment promotion department and the expansion capability of the merger of AVIC Property itself will lead to a steady increase in the management scale of the company after the merger.
At the same time, considering that the net interest rate of AVIC Properties and China Merchants Property in 2018 was only 4.
4% and 5.
0%, the previous top 100 average 8% continued to expand the improvement space, the introduction of China Merchants Group to actively promote the reform of China Merchants Property, clearly shifted from “cost center” to “profit center”, subsequent gross margin improvement and expense ratio improvement will promote net interest rate repair.
Therefore, the combined results are expected to increase in volume and price.
Among them, 19H1, AVIC property net profit1.
3.0 billion, previously +35.
9%, with a net margin of 5.
2%, ten years +0.
6pct, expected 19-year performance is expected to exceed 2.
3.4 billion, previously over + 43%.
In 19Q1, the net profit of China Merchants Property was zero.
4.1 billion, with a net interest rate of 5.
6%, +1 from earlier 18 years.
0pct, it is expected that the 19-year performance is expected to reach 1.
8.7 billion, the total property management results of AVIC Property and China Merchants Property is expected to reach 4.
2.1 billion, previously + 36%, and the possibility of exceeding expectations.
Investment suggestion: Reconstruction is approved by SASAC, non-residential property management leader takes shape, and “strongly promoted” rating AVIC Sunda gradually transforms real estate development business, strategic key property management high-quality track, and deeply cultivates institutional property management, and China Merchants PropertyThe combination of strong and strong, the area of the tube after the merger reached 1.
4.7 billion cubic meters, is expected to become a leader in non-residential property management, and increase the background of China Merchants Group, and gradually expand the scale to provide sustainable protection.
The promotion of China Merchants Property’s positioning will gradually shift from “cost center” to “profit center”. At the same time, it will follow up or through organizational reform to improve per capita performance, promote the promotion of profitability, and achieve quantitative and qualitative improvements.
We maintain an estimated 19 years and a combined property management performance of 20 years will be 4 respectively.
2 billion, 5.
500 million, considering the company’s dual scarcity, based on a 20-year target PE of 30 times, maintaining a target price of 18.
25 yuan, “strong push” level again.
Risk reminder: Property management is developing less than expected and profit margins are rising less than expected.