Central South Construction (000961): Focus on the development of the main industry to create a provincial sports theme town

Central South Construction (000961): Focus on the development of the main industry to create a provincial sports theme town

The event company announced two related-party transactions on September 30. Transaction one: The company intends to transfer 100% equity of Suzhou Zhongnan Center Investment and Construction Co., Ltd. to the controlling shareholder Zhongnan Holdings with a transaction amount of 4.

4 trillion, transaction 2: The company intends to purchase the controlling shareholder Zhongnan Holding’s Zhongnan Kediyuan Sports Culture Industry Co., Ltd. 100% equity and Zhongnan Industry City Development Co., Ltd. 100% equity, the total transaction amount is 0.

700 million.

The core point of view is the sale of the Central South Center project, which is conducive to focusing on the development of the main business.

The Suzhou South Central Project was awarded land in June 2012 with a total land price of 66.3 million yuan and a planned construction area of 36.

50,000 flats.

Based on the book value of the long-term equity investment, the company expects that the transaction will generate 2.

4.6 billion investment income.

As the Zhongnan Center is a 500-meter super-high-rise complex with a long development cycle and large capital occupation, we believe that under the current policy and tight funding environment, the company’s related transaction is conducive to resource concentration, focus on business development, and strengthen listed companiesPerformance stability.

Participated in the development of Haimen Football Town project, creating new growth poles.

Haimen Football Town, as one of the first 25 provincial-level characteristic towns in Jiangsu Province to be shortlisted for creation, is based on Zhongnan Kediyuan Football Club. It is a multi-functional one that integrates football events, training, sports intelligence, and health tourism.Sports themed characteristic town.

The company acquired two parcels of land in Haimen in August. The project locations are adjacent to the football town, and the planned construction area is 22.

1 and 9.

30,000 square meters, the land price is 3.

4 and 0.

700 million yuan, the floor price is 1532 yuan / flat and 707 yuan / square meter.

We believe that the repurchase of sports assets by the company’s equity acquisition will promote the development of the above-mentioned football town supporting land. The creation of sub-provincial sports theme towns has become a gap in the company’s characteristic town business, which is conducive to fostering newPerformance growth pole.

Financial forecast and investment recommendation Maintain BUY rating and target price.

00 yuan.

We forecast the company EPS to be 1 in 2019-2021.

10/1.

89上海夜网论坛/2.

33 yuan.

We expect the company’s performance growth in the next three years to be higher than the industry leader and second-tier developers of the same size. Therefore, the company is given an estimated premium of 30%. Based on the PE valuation of 8X in 2019 for comparable companies, the PE forecast for 10X in 2019 is maintained.Target price 11.

00 yuan.

Risks suggest that real estate sales are growing less than expected.

The extreme deterioration of the financing environment has caused the company’s capital chain to break.