Event Overview
Jinke shares released the 2021 semi-annual report, the company achieved revenue of 43.97 billion yuan, year-on-year + 45.1%, to achieve a net profit of 3.71 billion yuan, + 2.5% year-on-year.
Profits have grown steadily, and profitability has declined.
In the first half of 2021, the company achieved operating income of 43.97 billion yuan, an increase of 45.1% over the same period last year, and its net profit was 3.71 billion yuan, an increase of 2.5% over the same period last year. The revenue growth rate was much higher than that of net profit, mainly due to the decline in settlement gross profit margin. In the first half of the year, the company's gross profit margin and net profit margin were 20.14% and 11.07% respectively, down 5.81pct and 2.98pct respectively compared with the same period last year.
Sales grow steadily and land acquisition tends to be conservative.
In the first half of 2021, the company achieved sales of 102.5 billion yuan, an increase of 18% over the same period last year, a sales area of 10.05 million square meters, an increase of 17% over the same period last year, and a rebate of 99.7 billion yuan, with a payback ratio of 97%. It has been in the forefront of the industry for many years in a row. In terms of land acquisition, the company added 39 new land reserves, with a land area of 8.35 million square meters, down 39.1% from the same period last year. The amount of land obtained reached 35.4 billion yuan, down 35.2% from the same period last year, accounting for 34.5% of the sales amount, a decrease of 28.4pct compared with the same period last year, and the intensity of land acquisition was significantly weakened, but remained at a reasonable level.
The "three red lines" are up to the standard, and the degree of financial security is improved.
By the end of the reporting period, the company's net debt ratio, asset-liability ratio excluding advance payments and cash-to-short debt ratio were 77.08%, 69.55% and 1.38%, respectively. Among them, the scale of the company's interest-bearing liabilities decreased from 110.6 billion yuan in the same period last year to 94.14 billion yuan, with a pressure drop of more than 16 billion yuan. In addition, the proportion of interest-bearing liabilities due within one year fell to 26.8 billion yuan, accounting for 28.5 percent. The interest-bearing debt due within one to three years is 52.47 billion yuan, accounting for 55.7%, and the debt structure has been continuously optimized. On the whole, all the indicators of the company's "three red lines" are up to standard, and the overall financial security is further improved.
Investment suggestion
Jinke shares have steadily increased performance, good sales performance, rich soil storage resources, and improved financial security. Considering the reasons for the increase in settlement items and the decline in profit margins, we have raised the company's 21-22 revenue forecast of 101.87 EPS1.62/1.91 yuan to 1153.33 billion yuan to 1153.33 billion yuan, downgraded the 21-22 year earnings forecast to 1.47 billion yuan, and added the 23-year profit forecast. Revenue is expected to be 162.39 billion yuan and EPS 1.80 yuan, corresponding to the closing price of 4.99 yuan per share on September 3, 2021, with PE 3.1max 2.8 times respectively, maintaining the company's "buy" rating.
Risk hint
Real estate regulation and control policies have been tightened, sales have fallen short of expectations, and project profit margins have declined.