Event: the company issued an announcement on the cancellation of delisting risk warning and other risk warnings of the company’s shares and the continued implementation of other risk warnings and temporary suspension of trading. After the delisting risk warning and other risk warnings are cancelled this time, other risk warnings will continue to be implemented. The abbreviation of the company’s stock will be changed from ” Hna Infrastructure Investment Group Co.Ltd(600515) ” to “St basis”, and the daily rise and fall limit of the stock price will still be 5%.
At present, we have got rid of the debt burden and embarked on the battle lightly, and the performance of 22q1 is good. Since 2020, due to the superposition of covid-19 epidemic, the airport and real estate business have been impacted, the operating income of HNA foundation and 20 subsidiaries has decreased, and the debts are largely overdue. In September 21, the company issued the investor’s equity adjustment plan, which increased 20 shares for every 10 shares to implement the increase of capital reserve, which is used to offset the debts of listed companies, introduce war investment, etc. Through the overall reorganization of HNA, the occupation of non operating funds, undisclosed guarantee and performance compensation of HNA’s basic shareholders and their related parties have been properly solved, and the shareholder structure has been optimized. At the same time, the company’s operational high-quality assets have been retained. Under the environment of multiple outbreaks in the country in the first quarter, the company performed well in Q1 2022, realizing an operating revenue of 1.189 billion yuan and a net profit attributable to the parent of 75.09 million yuan.
Focus on the subsequent rent deduction negotiation with China free Riyue Plaza. In terms of commercial business, by the end of the 21st century, the company had 16 self-owned commercial projects, with a total rentable area of about 449400 m2, including about 31700 m2 of airport commercial rentable area and 417700 m2 of real estate commercial rentable area. Among them, Haikou Riyue Plaza provided the site lease for the duty-free shop in Haikou Riyue Plaza, with a business area of 19505 m2. We expect that the negotiations are expected to lead to further improvement of commercial business. The company sits on the core holding property resources of dayingshan CBD in the center of Haikou. With the landing of Hainan free trade port, the scarcity of core property resources is expected to gradually highlight.
The tax-free business grew strongly and is expected to usher in considerable development relying on the resources of controlling shareholders. There are two main forms for the company to participate in the tax-free business, one is the form of equity investment, and the other is the form of providing site lease for self-owned properties. The tax-free business in the form of equity investment includes Haikou Meilan Airport duty-free shop (outlying island duty-free), China Phoenix Airport duty-free shop (outlying island duty-free) and Hainan HNA China duty-free (Port duty-free). In 2021, the company’s tax-free and commercial business realized an operating income of 490 million yuan, including 305 million yuan of investment income from equity investment in tax-free business, about 169 million yuan of rental income from leasing of duty-free shops provided by self-owned properties, and 57 million yuan of rental income from duty-free pick-up points. In the future, the company is expected to actively layout the offshore duty-free market in combination with its own airport operation, property management and other resource advantages, or form a benign interaction with other business forms and form a new growth point.
The carry over of real estate business is gradually smooth, and the transformation focuses on the airport industry. The company’s real estate business achieved an operating revenue of 1.123 billion yuan in 21 years, a significant decline from 4 billion yuan in 20 years and 8.7 billion yuan in 19 years. The contracted sales area is 73800 square meters and the contracted sales amount is about 1.112 billion yuan. Due to the impact of bankruptcy and reorganization, the company has no new construction area in 21 years, while 22 under construction and land reserve projects, covering an area of more than 6000 mu, had been completed by the end of 21. By the end of the 21st century, the area of land to be developed by the company was 1.4922 million square meters, and the planned capacity construction area was 2.5426 million square meters. If the cap is removed, we expect that the sales and carry forward of real estate business may return to the right track. In the future, the company’s real estate resources are expected to gradually converge to the airport industry, and continue to grasp the market opportunities such as Hainan free port policy and airport economic development.
Investment suggestion: in 2021, the company got rid of the overload debt and went into battle with light equipment, realized the rapid integration with Hainan holdings, returned to the track of steady development, and the subsequent decapitation is on the way. The company holds a large number of high-quality real estate and properties in Hainan Province, especially in Haikou City, and deeply participates in the tax-free business of Hainan’s two major airports and outlying islands. In the future, with the further opening of the tax-free business pattern of outlying islands, the company is expected to continue to obtain performance increment.
Risk tips: policy regulation risk, the recovery of Hainan tourism is not as expected, the company’s operation risk, the uncertainty of the company’s hat removal, the risk of senior personnel change, other risks of debt restructuring of related companies, etc
