Second-term housing enterprise leader Xiao Hong back China's construction will exceed Vanke

Investor newspaper (analyst Xu Xiaoning) a year!　　June 5, 2008, wearing the Shenzhen King Mansion, CCTV site, "Water Cube," the Halo of the contractor, China Construction Co., Ltd. (Chinese architecture, the same below) 12 billion shares issued a a-share issuance program. Although it was only half a year from China's construction, but the company in the form of approval to obtain the listing qualification, which is enough to make the industry feeling a lot, because under the CSRC "IPO shares and listing management measures," Nineth stipulates: "The issuer since the establishment of the company, the duration of business should be more than 3 years, Except with the approval of the State Council.　　"Even though China has been building lightning, it has been nearly a year since the IPO was frozen," he said. Today, IPOs are expected to reopen in the near future, said Mengqingyu, the Chinese construction board secretary, who has already met and is the biggest financier: "We are sure to aggressively seek the first listings after the IPO restarts." "Asked whether to submit the relevant supplementary material to the SFC, Mengqingyu said, is still awaiting the SFC's notice."　　As to whether the size of the listing will be adjusted, he said it is not convenient to open. The House enterprise eldest brother small red raises returns according to the Chinese construction to disclose the prospectus, the company proposed to issue 12 billion shares, plans to raise the fund 42.6 billion yuan. The funds raised will be used for major project contracting, real estate development, Construction machinery Purchase, foundation Investment, five major projects of steel structure processing base and 6 billion RMB for supplementary company liquidity after deducting the issue fee.　　Once released, it will be the largest real estate enterprise IPO ever made in the history of a shares. It is worth mentioning that China's construction also wholly owned by China Overseas Group Limited, which holds the Hong Kong listed companies China Overseas Development (00688.HK) 52% of the Equity and China Construction (03311.HK) 62% of the equity.　　Therefore, China's construction of the shares of the IPO is considered by the industry as a small red chip back. We expect Chinese construction 2008 net profit will reach 5.806 billion yuan, 2009 net profit will reach 8.865 billion yuan, 2007-2009 year compound growth rate is 50.84%, according to current 18 billion total share capital calculation,　　Earnings per share of 0.322 yuan, if the company in the A-share market issued 12 billion new shares, then the issuance of earnings per share is diluted to 0.194 yuan. In the current a-share market, construction and real estate development listed companies are about 28 times times the average P/E, the calculated price of 5.43 yuan.　　Given the new shares premium, 32~35 multiples of the price, the price is 6.21~6.79 yuan. Direct benefit 4 trillion investment in China building is the main sponsor by China National Petroleum Corporation, Baosteel Group and Sinochem Group. Among them, China Construction Corporation held 94% shares of the company before the release, which is the controlling shareholder and the actual control person. At the same time, China's construction as the world's largest residential construction contractors, in 2008, the "WealthFu, "the world's Top 500" enterprises ranked No. 385, is the only Chinese region to receive the award of the construction enterprises. From the company's pre-disclosed prospectus (report), the main business of China's construction mainly includes housing construction, real estate development and investment, infrastructure construction and investment and design survey and other four parts.　　2007, China's construction of a total operating income of 168.306 billion yuan, an increase of 26.35%, achieve net profit of 3.897 billion yuan, an increase of 51.77%, of which, 2005-2007 year net profit compound growth rate of 58.44%. From the composition of operating income, the company's housing construction project income accounted for nearly 80% of the operating income, 2007, the company to achieve housing construction business income of 135.163 billion yuan, accounting for up to 79.65%. Another major business of the company's real estate development and investment 2007 years a total income of 16.448 billion yuan, accounting for the company's operating income 9.69%. It is noteworthy that, although the housing construction project revenue accounted for nearly 80%, but the business of the company's profit contribution has declined, 2007-year profit accounted for 36.25%, compared with the 2005 decline of 19.27%; In contrast to the real estate development and investment business, although accounted for less than 10%,　　But the business profit ratio is as high as 53.46%, up 16.52% compared with 2005.　　In addition to the two aforementioned operations, the company's infrastructure construction and investment and design survey accounted for 2007 years of business income, respectively, 7.41% and 1.19% respectively, compared with the 2005 increase in the basis of 2.05% and 1.07%. According to the growth of the company's business over the years, we expect that there will be significant growth in construction, real estate and infrastructure operations under the government's 4 trillion investment stimulus package and with the housing market warming.　　Construction, real estate development and investment, infrastructure construction and investment and Design survey 2007-2009-year compound growth rate of 23.2%, 32.62%, 64.99% and 42.05%, total operating income composite growth rate of 29.61%.　　Gross margin more than Vanke taking into account the structural characteristics of China's main business structure, we in a-share listed companies, the selection of construction industry leading enterprises in Shanghai and real estate development and investment representative company Vanke A for comparative analysis of corporate performance. From the operating income alone, the Chinese building nearly 170 billion yuan of income is 6.73 times times the Shanghai construction, is Vanke a 4.74 times times, well-deserved the title of China's largest builders. However, although China's huge construction revenue is enviable, but its net profit is dwarfed, nearly 170 billion yuan of sales income of less than 4 billion yuan net profit, net sales rate is slightly higher than Shanghai, but far below the level of Vanke up to 41.99%. The main reason is that the relatively low level of profitability of the building engineering business accounted for the proportion of operating income is too high, nearly 80%, but also caused the company MaoLow interest rates. However, it is more practical to compare the building engineering and real estate development and Investment branch business with Shanghai construction and Vanke. In terms of gross profit, the gross profit margin of China's building, whether it is building engineering or real estate business, is higher than the above two companies, of which, China's 2007-year building construction project gross profit margin of 8.38%, 3.02% higher than Shanghai construction, and real estate development and investment business is not inferior to Vanke A, 2007 gross profit margin of 43.42%, higher than Vanke a 1.33%.　　The company's gross profit margin is higher than the benchmarking enterprise shows the company's advantages in these two businesses. It is noteworthy that China's construction assets and liabilities ratio is higher, at the end of 2007, 84.32%, higher than Shanghai construction and Vanke A, however, because the construction industry is characterized by a large flow of debt, the end of 2007, the company's current liabilities accounted for 80.9% of the total liabilities, because of higher current liabilities, Does not constitute a significant impact on the assets themselves.　　With cash (including transactional financial assets) as a proportion of total assets of three companies to see the adequacy of China's construction funds, but less than Shanghai engineering and Vanke A level, the expected capital pressure will be eased after the listing. Disclaimer: This article only the representative's personal opinion, and Phoenix. 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