Event:
We went to Wuhan Hanshang Group recently for research and investigation, and communicated with relative employees on its operation status and development strategy.
Our Analysis and Estimation:
Turnover of 21 Shopping Center keeps growing rapidly.
Two shopping centers are future growth points of the company.
Wuhan International Convention & Exhibition Center generates a steady income source.
Impact of other businesses is limited.
Expenditures of three funds are extremely high.
Investment Suggestion
“Neutral” rating is given for the first time.
We forecasted the company’s net profit in 2008-2010E to keep narrow. Since the two shopping centers need a cultivation period of two to three years, although they are to put into operation in 2011, it is hard for the group to go through the difficult operation status in the short term. Although the company’s future development depends on operation status of the two shopping centers, it should mainly focus on resources operation and control of expenditure at the moment. We hereby give “Neutral” rating for the first time to the counter.