Category: Money tips Release Date: 2006-10-25
Highlight the competitive advantage: The company is currently China's largest wholesale market, one of the developers, a subsidiary of China Commodity City market, was founded in 1982, is the founder of China's earliest professional markets, have a certain first-mover advantage; Yiwu small commodity wholesale market in the world of labor-intensive industries to China, the biggest beneficiaries of the transfer, the market has 43 industries, 1,900 categories, 40 million products, almost covering the arts and crafts, hardware, daily necessities, textiles, clothing and all other daily-use industrial products; a wide range of goods of radiation, goods sold in over 212 countries and regions to reach 60% of the strong export-oriented degree is China's commodity circulation, research and development, exhibition center and an important export bases.
Growth prospects clear:
International Trade City, a program guide price by spaces will expire in September 2007 is International Trade City, a program guide price of 1,100 yuan / square meters, is the market price of commercial spaces sublease rental prices far higher than the government guidance several times, We expect the new rental prices will be upgraded may be related to two flat.
The company's now has three hotels: Sil-Metropole Hotel, Mall Hotel, Ocean Hotel. One Ocean Hotel, put into operation in October 2005 four-star hotel, with a total construction area of 27,000 square meters, has 280 suites. As the location adjacent to the Trade City, the occupancy rate of 90% or so. Ocean Grand Hotel in 2006 full year earnings contribution for the company, the hotel business in 2006 will have a substantial increase in revenue.
China Commodity City market by Huangyuan market, Binwang Market, China Yiwu International Trade City, composed of three markets. International Trade City, the existing two-part, two 2 phase was put into operation in October 2005. 3 International Trade City market construction has already begun and is expected to be 2008 "11" before completion.
The company plans to build two Convention and Exhibition Center, the location in the Meihu Exhibition Center next to the building is expected to open in 2007, Yiwu Small Commodity Fair held in 2008 prior to operational.
We believe that the company's growth prospects become increasingly clear in the next five years, will maintain 30% net profit growth, expects EPS were 06-08 years of 2.40 yuan, 2.95 yuan, 3.90 yuan (3.90 yuan per share in 2008 earnings taken into account 3-month profit contribution of the market). In view of the company's extensive visibility, steady growth, obviously the international competitive edge, we continue to give the company "overweight" rating.
