New Taisho (002968): Leader in Non-Residential Property Segmentation in the Southwest China Market

New Taisho (002968): Leader in Non-Residential Property Segmentation in the Southwest China Market

The company’s initial public offering on the small and medium board on November 19, 2019, with an issue price of 26.

76 yuan / share, issue price-earnings ratio of 22.

99 times, the actual amount of funds raised was 479.28 million yuan, becoming the second property stock of A shares after Nandu Property.

  Deeply plowing the market in Chongqing and surrounding provinces, non-residential 杭州夜网 property services are the main business: the company was established in Chongqing in 1998 and opened its national layout in 2012. It has entered 16 cities and 28 cities.

The company’s business is concentrated in the southwestern region, and it is second only to Longhu Property and Jinke services in the Chongqing market.

Chongqing’s market revenue accounted for 78 in H1 2019.

6%, 61% in tube area.

1%; non-residential property revenue and area under management both exceeded 86%, which is the company’s main business.

The company has strong market-oriented development capabilities in non-residential property sectors such as government agencies, schools, and airports, and has outstanding ability to acquire high-quality key projects. It has a reputation for ownership in the southwest and has formed obvious business barriers.

  Located in the middle echelon of listed property companies, the strength has increased rapidly in recent years: the company ranked 18th in the list of China’s top 100 property service companies, and the company’s area of management in 2016-2019H1 increased from 44.68 million square meters to 58.38 million square meters.

From 2014 to 2018, the company’s revenue from 3.

8.4 billion to 8.

The net profit attributable to mothers increased from 3141 million to 88.08 million yuan, and the four-year CAGR of revenue and net profit attributable to mothers reached 23 respectively.

13% vs. 29.


  The profit margin is stable, and future growth is expected: Under the relatively high proportion of manpower-intensive special management business, the company’s gross profit margin remained at a stable level in 2014-2018. In 2018, the net profit rate of return to mother, ROE, ROIC were9.

94%, 37.

10%, 33.

78% are in the middle and upper reaches of comparable companies with stable profit margins.

After listing, it will fully benefit from capital empowerment, and the per capita performance and profit potential of new business formats will be fully tapped.

  The company’s schools, institutions, stadiums, and other property sub-tracks may take over residential and commercial properties in the future and become potential sub-fields. The company will fully benefit from its leading 杭州夜生活网 and first-mover advantages.

  Earnings forecast and rating: We expect the company’s EPS for 2019-2021 to be 1.

54 yuan, 1.

93 yuan, 2.

45 yuan (considering supplementary equity), the first coverage is given a buy rating.

  Risk Warning: The national layout is slower than expected; the expense rate during the expansion is too high.