Financial Street (000402) Company Tracking Report: Sales increased by 30% with steady growth in operating profit

Financial Street (000402) Company Tracking Report: Sales increased by 30% with steady growth in operating profit
Key points of investment: slight increase in revenue and net profit increase by 8.72%.In 2018, the company achieved total operating income of 221.1.3 billion, a decrease of 13 compared with the same period last year.35%; net profit attributable to shareholders of listed companies is 32.6.9 billion yuan, an increase of 8 over the same period last year.72%; realized reduction in budget benefits of 1.09 yuan, an annual increase of 7.92%. The company’s 2018 profit distribution plan to shareholders is based on the company’s total share capital of 2,988,929,907 shares as of December 31, 2018 as technology, and a cash payment of 3 yuan (including tax) for every 10 shares. Margins have increased and debt ratios have increased.The company’s gross sales margin in 2018 was 48.60%, an increase of 19.19 units; net sales margin is 18.26%, an increase of 2 over the same period last year.18 averages.Benefiting from the emergence of project investment value, project cost control and improvement of the structure of the current settlement project, and other factors, the real estate business gross profit margin of the main business in 2018 increased by 20.42 up to 45.77%, leading to a significant increase in sales gross margin.As of December 31, 2018, the company’s assets and liabilities supplemented 74.96% increase by 1 each year.88 units; net debt increased by 184.25%, a significant increase of 33 per year.43 units. Sales increased by 30%, and new starts increased by 207%.In 2018, the company achieved a sales contract value of about 30.7 billion yuan, a year-on-year increase of 30%, a record high.In 2018, the company’s resumed construction area was 5.5 million square meters, an increase of 51% per year; of which, the newly started construction area was 3.38 million square meters, an increase of 207% year-on-year; the completed area reached 1.07 million square meters, which gradually decreased by 40%.In 2019, the company plans to realize an area of approximately 7.73 million square meters of restarted construction, of which approximately 3.55 million square meters of newly started construction.The substantial increase in the company’s newly started floor area has broken the replacement basis for future saleable supply reserves and settlement. The five major urban agglomerations have been cultivated, and land reserves have steadily increased.In 2018, the company added 3.56 million square meters of equity construction area (including 2.48 million square meters of above-ground equity area), realizing an equity investment of 19.1 billion U.S. dollars, and the average land price of above-ground equity areas was approximately 7,6杭州桑拿网99 yuan / square meter.Settleable resource planning construction area of 15.33 million square meters (corresponding to the planned equity area of 12.61 million square meters) Investment proposal: Maintain “higher big city” rating.We expect the company’s net profit attributable to shareholders of the parent company to be RMB 37 in 2019 and 2020, respectively.1.4 billion, 41.25 ppm, corresponding EPS is RMB1.24, 1.38 yuan.As of April 08, 2019, the company closed at RMB 9.10 yuan, corresponding to PE in 2019 and 7, respectively.34 times, 6.59 times, corresponding to 19 years PEG value is only 0.59.We give the company 8-9 XPE in 2019 with a 6-month reasonable value range of RMB 9.92-11.16 yuan, a discount of about 41 from the previous RNAV.2% -47.At 7%, we maintain the “Initial Market” rating. Risk warning: The company’s project sales and settlement are lower than expected.

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