Royal Court International (000056) in-depth research: controlling the expansion mode of asset light commercial operation
Core point:
Acquisitions and operations make today's Royal Court International a success
The predecessor of the company was Shenzhen businessmen. In September 2015, the company was renamed Royal Court International from Shenzhen businessmen. The major shareholder of Royal Court Group was Zheng Kanghao, a Chaoshan businessman. By the end of the first quarter of 2017, the company had held 572 million shares of listed companies, accounting for 49.89% of the company's total share capital. Years of commercial real estate operation experience is a valuable asset of Royal Court International, and the support of major shareholders for listed companies is the core driving force for the development of the company.
The main mode of future development is to build a comprehensive operation service platform with commercial operation as the main body and expand the endogenous and external asset light model. By building a dual platform of property management+content service, we can realize the rapid promotion of brand and management. Self owned properties are becoming more mature:
The Imperial Court Plaza is the core asset of the company. As a large-scale commercial complex with a rental area of 80000 square meters, even though it is located in the core business district of Futian, Shenzhen, it has taken passenger flow incubation and improving rental rate as its core priorities since its opening 14 years ago. At present, the project is basically full rent, and after 17 years, the rent level is expected to further increase. A variety of M&A projects: since 16 years ago, the company has increased the leasable area of newly held properties by a total of 80400 square meters through sublease and acquisition. The exploration of the asset light business model will help the company expand its future projects. Joining hands with Greentown to develop property management: The company has entrusted 315000 square meters of commercial property projects of major shareholders, and managing 1.3 million square meters of stock projects and future incremental projects through cooperation with Greentown will be a major focus of the company's performance and income growth.
It is estimated that the performance in 2017 and 2018 will be 0.25 yuan and 0.35 yuan respectively, and the rating of "buy" will be given for the first time.
According to the calculation of the Company's equity incentive performance commitment, the scale of net profit in 2017, 2018 and 19 years was 290 million, 470 million and 700 million respectively. On the basis of current projects and resource reserves, the asset light resource expansion mode of the company will provide strong support for the growth of future performance. Pay attention to the pace of expansion of new projects in the future and the progress of cooperation with large-scale real estate enterprises.
Risk warning
The property is concentrated in the core business district of Futian, Shenzhen, and the future performance growth is highly sensitive to rent.
