YOUNGOR'S "Drag" Property: Long Hidden Value

Despite the impact of real estate regulation in 2010, YOUNGOR's main real estate business revenue increased by 32.22% over the same period last year, and net profit fell 42.99% year-on-year.

But Shenyang Wanguo believes that YOUNGOR has basically completed the layout of the Yangtze River Delta, and is expected to successfully pass the 2011 regulation year. In 2013, 2012 and 2013 will enter the settlement period.

Looking at the latest three years' annual reports, in 2008, 2009 and 2010,

Simply from the earnings data, the drag on the company's performance is the real estate business.

However, due to the implementation of land value-added tax liquidation, the increase in land appreciation tax is 500 million yuan (569 million yuan in 2010 and 48 million yuan in 2009), which will result in a decline in net profit of the business.

But from the annual report, it is found that the profits of the company in the coming year have been "hidden", and will be released in 2011, and will be very beautiful.

In 2010, the company's business tax and its additional tax were 970 million yuan, and only 350 million yuan in 2009. Why does business tax and additional growth rate go so far beyond revenue?

The secret is that the increase in land value added tax is 500 million yuan, the business tax in 2010 is 350 million yuan, in 2009 it was 260 million yuan, only increased by 90 million yuan; the land value added tax in 2010 was 569 million yuan, in 2009 was 48 million yuan, increased 521 million yuan.

This has been confirmed from the company's cash flow. In 2010, YOUNGOR's real estate business realized a pre payment of 11 billion 900 million yuan, an increase of 66% over 2009, significantly exceeding the company's settlement income in 2010.

The company's operating net cash flow in 2010 was 3 billion 458 million yuan, and in 2009 it was 1 billion 185 million yuan, with a growth rate of 191%.

However, a large amount of advance payments on account will be settled in 2011 as sales revenue (the 2011 confirmed delivery is Sun City Phase 1 and city hall, Long Island garden is uncertain).

The company's current real estate business has achieved rolling development, and the development of cash flow has seen a virtuous circle.

While maintaining a high share of the market in Ningbo, we will promote the Yangtze River Delta on average every three years into a city.

In terms of long-term value, the company's

An analysis of the proceeds from the two industrial land conversion to commercial land is expected to yield more than 10 billion yuan.

Conservative estimate, assuming that the company developed high-rise residential, floor area ratio of 2.5, the land pfer fee per square metre, plus Jianan cost of 8000 yuan, the sales price of 20 thousand yuan / square meter, the consolidated tax rate of 40%, the company will get a net profit of 10 billion 200 million yuan.

This part of the expected revenue is not reflected in the company's statements, so the company's real estate business has a long-term implicit value.

The price earnings ratio of fast consumer clothing companies such as Smith Barney is about 50 times, and Hongkong listed Lining is experiencing a performance decline with a P / E ratio of about 10 times.

According to the data, the price earnings ratio of low growth clothing listed companies is 20~30 times.

If we give the company 20 times the value of its valuation, the clothing business will be valued at 14 billion yuan, plus the company's 12 billion 200 million yuan currently available for sale of financial assets, the total value of 1 billion 100 million yuan trading financial assets will be 27 billion 300 million yuan, which is the same as the current market value of the company.

This means that the current value of the company reflects only the value of clothing and investment business.