Chinese architecture: The biggest concern of the world's largest construction contractors

June 5 last year, China Construction Co., Ltd. (hereinafter referred to as China Building) through the Securities and Futures Commission issued a review, according to the Chinese construction Prospectus Declaration, its plan issued no more than 12 billion shares, raise funds 42.6 billion yuan, for major project contracting projects, ordinary residential real estate development projects, purchase construction machinery and equipment,　　Infrastructure investment projects, steel structure processing base projects and replenishment company liquidity. The company's director of the office told reporters that the current amount of fund-raising and use did not occur a major change. As to whether the market is concerned about the imminent listing of Chinese buildings, the person said "in the SFC notice." In the near future, China's architectural secretary Mengqingyu said, "will certainly actively strive for IPO restart after the first listing." "China Construction is the main sponsor of China Construction Engineering Corporation, jointly sponsored by China Petroleum Group, Baosteel Group and Sinochem Group in 2007." Investors may have little knowledge of Chinese architecture, but must be familiar with the projects they undertake.　　Water Cube, CCTV new site, Shanghai Global Financial Center, Pudong International Trade mansion are its masterpiece. Chinese architecture is China's largest building real estate integrated enterprise, the world's largest residential engineering builders, operating performance and profitability in the forefront of the industry, the main business including housing construction projects, international engineering contracting, real estate development and investment, infrastructure construction and investment and design survey.　　Currently listed in the Shanghai and Shenzhen cities of the real estate and construction companies are not related to the scope of Chinese architecture.　　Data show that China's construction of 2007 years of operating income of 168.3 billion yuan, real estate development and investment-oriented Vanke A (000002) 2007 revenue for 35.5 billion yuan, domestic building leading Shanghai construction (600170) is 25 billion yuan. It is worth mentioning, however, that the net profit of Chinese construction to the parent company is not high. The net profit of 2007 is 4.917 billion yuan, if the total share capital of the first 18 billion shares is calculated according to the IPO, the earnings per share is 0.272 yuan, and the earnings per share after the IPO is 0.1639 yuan.　　Taking into account the 2006 new and old row after the initial offering price of the construction company's IPO price is 26.43 times times, and considering China's construction as a large-cap stock, its IPO price may be between 3.7 to 4.1 yuan/share. In addition, from the Chinese construction prospectus, it is faced with a higher risk of receivables than the similar listed companies.　　China Construction 2007, 2006 and 2005 Accounts receivable balance is 33.6 billion yuan, 29.72 billion yuan and 26.59 billion yuan, the above three year net profit is 4.92 billion yuan, 2.41 billion yuan and 1.4 billion yuan respectively.　　Then look at Shanghai Construction and Vanke a 2007 accounts receivable, Shanghai construction for 3.15 billion yuan, the net profit of 300 million yuan, Vanke a accounts receivable for 865 million yuan, net profit of 4.48 billion yuan. However, China's construction of 2007 years of accounts receivable in 74%Age is within a year, that is to say, in 2008, this part of the account should be recovered, and thus from the debt to profit, but last year the financial crisis spread, the housing market downturn, the project payment may lead to some of the bad debts produced. In addition, the international project contracting business is the advantage of Chinese architecture, but under the financial crisis, these international projects may bring the exchange rate risk to Chinese architecture.　　However, since 2007, China's construction projects abroad to undertake the benefit is not too good, 13 have to undertake international projects, the total net profit of the subsidiary is 86.59 million Yuan. China Architecture 2007 2006 2005 net profit: 4.916 billion yuan 2.411 billion yuan 1.395 billion yuan to be issued: 12 billion shares proposed to raise funds: 42.6 billion yuan estimated price: 3.7-4.1 yuan main business: Housing construction projects, international engineering contracting, real estate development and investment,　　Infrastructure construction and investment and design survey risk tip: Accounts receivable accounted for relatively high, there are exchange rate risk of similar shares: Vanke A (000002), Shanghai Construction (600170), Poly Real Estate (600048), the Gold Group (600838), Cofco Real Estate (000031) Equity shares: PetroChina (601857), Baosteel (600019)