Category: Money Tips Date: 2006-03-19
Event Description:
January 16, the National Tax Administration website for real estate development enterprises by value-added tax of land clearing "bottom line", the market generally concerned about the reservoir of the shares will have a negative impact; the same time, the company directed additional progress, and ProLogis (China) Development Company Limited cooperation and other issues are also more subject to market concerns. 1?7日，我们再次对公司进行了调研，就相关问题与公司有关人员进行了沟通?
Research Information Letters:
1, "on real estate development enterprises by value-added tax of land management issues related to the liquidation of the notice" the impact on the company's assessment of January 16, the National Tax Administration website, "on real estate development enterprises by value-added tax of land management issues related to the liquidation notice "(see appendix), requiring the liquidation value-added real estate projects.
We believe that the implementation of the policy will not share a significant impact on the reservoir:
First, although the shares and major shareholder of the reservoir has a large land reserve, and have a high added value, however, holds the land intended to operate warehousing operations, rather than sell or make real estate development, subject to the land value-added tax impact on the basic does not exist; Second, the company's history, sale, transfer, replacement of part of the land, according to our order information, mostly due to the Government in planning the relocation of reasons, does not belong to the scope of payment of land value increment tax; and third, the company's future will be further become bigger and stronger, land development and expansion of its fundamental; Meanwhile, ProLogis co-operation will mainly invest in land and warehouse facilities, further reducing the possibility of the sale of land and reduced the land value increment tax paid to the impact of performance of the company space. 2, the company warehouse logistics network layout of the country, is the leading storage and logistics industry.
At present, the company has a land area of 4.5 million square meters, the freight yard area of 1.44 million square meters, warehouse area of 850,000 square meters, special railway line of 114 km, storage and logistics facilities, the layout of the country, and in Tianjin, Nanjing, Wuxi, Wuhan, Xi'an and other places has the region's largest spot market.
At present, the affected industry, confusion, disorder and the impact of intense competition, the company has a market share, while less than 2%, but it is the industry for more than 10 times the second, the industry leading status significantly.
3, relying on a major shareholder and controller, with the overall public goal, the company has sustained extension-style room for growth.
The company's actual controller - China Chengtong Group, listed in the company established the beginning of the integration of warehousing and logistics operations within the system in order to achieve the objectives listed as a whole. At present, the major shareholder of more than 70% of the business has been through constant acquisitions into the listed company is expected to be completed in 2007 after the non-public offering, a major shareholder close to 50% of the land, 80% of the business will enter the storage shares, China Material Reserve Company assets will be transported initially listed as a whole to achieve short-term goals; expect that the remaining assets will be gradually into listed companies. In addition, the SASAC Chengtong Group, as the state-owned asset management companies selected the first batch of pilot units, will continue to accept the reorganization of the central SASAC to allocate enterprise assets, and logistics-related assets would be allocated in the Chu Shing Tong Group Corporation, and from the overall market context, this part of the assets, after finishing, the future, more likely to enter the listed companies. Sustainable resource acquisition advantages to insurance companies to continuously grow bigger and stronger through the extension type.
4, for the market, several issues of concern to the exchange and views (1) business in the future growth problems 1) material distribution business: the company will be divided into materials distribution business primarily business and logistics business. Distribution business supplies company's main business revenue accounts for more than 90%, mainly steel and other bulk distribution of the means of production. The business's future growth depends on the turnover rate of increase and expansion of the growth was robust.
2) Traditional logistics business: the traditional logistics services (warehousing, access to treasury operations) has been the company's business core. 2005 data show that, storage, access to bank accounts for company's two logistics business income revenue 734.3%. We believe that the bottleneck of storage facilities subject to intense competition, historical price factors, the company's traditional logistics business for future growth depends on increasing turnover rate, large shareholders and actual controllers of continuous injection of assets, as well as warehousing, access to treasury operations continue to enhance the level of fees, the annual growth above 20%.
3) The warehouse receipt collateral business:, due to its excellent resources, vast market space, the lack of competitors, the business was launched, more than 100% annual growth rate. The company warehouse receipts pledged to carry out supervision of business in the country's largest and best. 2005 report data showed that the business income of 8.75 million yuan to achieve, an increase of 243%. According to investigations and studies, taking into account the Company's affiliates, subsidiaries statistical caliber issue, the amount should be higher than their actual income statement data; 2006 revenue contribution will be in 2000 million per; expected in 2007 rose by more than 100% more likely to . Meanwhile, the strong profitability of the business, the cost is mainly labor costs, a conservative estimate the level of gross margins above 60%. The company carrying out the business of a more cautious, using step by step approach, we believe that the rapid growth, the performance of the company's future growth is expected to become a bright spot.
4) spot trading market operations: The main storage and access to library business partner to carry out the growth momentum, the company has established a national steel market. In 2005, the business turnover of 1,500 billion yuan and income of 60 million yuan, accounting for company's logistics business about 10% of revenue, expected future annual growth rate of 30% or so. In the long term, the company expected the support of Ministry of Science and pilot development of a logistics platform for electronic trading, when the introduction of the fund if the credit of steel products to help customers complete the payment, the reservoir will eventually be upgraded shares purchase and sale of steel pricing power, which Share the reservoir may become a major domestic steel sales monopoly.
5) Transport Distribution business: the company uses to attract other transportation companies or joining in the form of an effective complement its own relative shortage of transport resources in the market against the backdrop of constant norm, growth rate and good room for growth. 2005 revenue in 59.63 million yuan, an increase of 28% rate of increase in the next few years, more than 30%.
Comprehensive analysis that the company's expansion and extension-type content-type growth, working together, expects an annual growth rate of future performance will be maintained at about 30%.
(2) The prospects for cooperation with ProLogis, according to the strategic framework agreement signed by both parties, combined with ProLogis mode of operation and the status quo of China's capital market is expected to possible modes of cooperation are:
Reserve and major shareholders of shares in kind (land resources and storage resources) mode funding, ProLogis way to fund investor to set up a joint venture company; joint venture company will operate mainly logistics real estate joint venture construction of logistics center will be sold according to actual needs ProLogis's funds, and then the Central Reserve stock, or a joint venture company's anti-rent.
We believe that the process of cooperation with ProLogis, the company can benefit from the following aspects or:
1) ProLogis customers in the world top 500 enterprises mainly through cooperation, companies can share the high-end ProLogis customer base and improve the company's current clients are mainly in the low-end of the status quo; 2) the parties anticipated cooperation, the two sides will jointly established management team, which will bring advanced management experience the company will help integrate existing resources to improve the operational efficiency of the company's assets.
3) make an inventory of the company's existing land resources and storage facilities. Company's current land resources are mainly used for storage and use of yard, and not for sale. Through the two-way joint venture, the company primarily be invested in land resources and storage facilities, to achieve the company's appreciation of land value; the same time, can improve the company's storage facilities, construction standards, management standards, technical standards, enhance profitability.
According to Proos strategic development plan, in 2008 prior to 2 billion U.S. dollars investment in China. Currently, ProLogis has been set up project team, is the reservoir of shares of the eastern coastal region of the land and storage resources, research site, is expected in the first half, or will have a specific action. We believe that the co-operation with ProLogis has room for imagination.
(3) The company's private placement progress. Due to the recent issuance of enterprise applications for more directional, the company private placement is in the stage of waiting for approval.
5, the risks associated with tips. Continue to prompt investors concerned about the storage and network management integration process risks faced, steel market and steel prices caused by fluctuations in the performance of volatility.
6, maintains the rating. We maintain our previous company in 2006, 2007 EPS0.14 yuan, 0.18 yuan outturn forecast, maintain our company's valuation analysis. Details please refer to the January 8, 2007 in-depth research reports.
