This report is read as follows:
Profit margins rebounded slightly in the third quarter, and it is expected that the downward land window of the market will give the company an opportunity to catch up against the trend, with a greater focus on promoting the rapid expansion of commercial real estate after the verification of the product line in the spring breeze, and the value is expected to be revalued.
Main points of investment:
Maintain the overweight rating and maintain the target price to 6.20 yuan. The gross profit margin in the third quarter was generally stable, and the carry-over profit increased significantly compared with the same period last year, which was basically in line with our expectations. It maintained a growth rate of-/ 16% and a growth rate of-/ 16% and 18% from EPS to 0.31 and 0.36 PE in 2021-2023, with a target price of 6.20 yuan and a current price corresponding to 10.6 times PE in 2021.
The net profit of homing in the first three quarters was 1.12 billion, an increase of 47% over the same period last year, in line with market expectations. Revenue in the third quarter increased by 40.3% compared with the same period last year, and the comprehensive gross profit margin rose slightly by 1.7 pcts to 33.4% compared with the first half of the year. The overall profit margin showed signs of stabilizing, and the loss-making items are expected to be basically cleared. Maintain the judgment that performance bottomed out and rebounded in 2021, and the layout of high-energy cities makes the company's overall performance manageable.
During the downward period of the market, the company has a better window to get the land. After the personnel adjustment is completed in the first half of 2021, it is expected to start again during the market downturn. In the third quarter, 950000 square meters of land are built, and the layout is mainly concentrated in the long-term ploughing cities of Chongqing, Xi'an and other companies. the current land market is cold, giving the company the opportunity to take the core land against the trend. Under the guidance of hundreds of billions of sales targets, it is expected that we can better grasp the opportunity to take land against the trend.
The product line in the spring breeze is further verified and the commercial value is expected to be revalued. The second product of the product line in spring breeze was successfully opened in Suzhou Dayue spring breeze, with a total passenger flow of 200000 on the first day and total sales exceeding 18 million yuan, further verifying the success of the product line. And the product line covers 25-45-year-old people with stronger spending power, there will be more space. With the acceleration of business expansion, the company's operational advantages will continue to be recognized by the market, and high-quality expansion is expected to usher in a revaluation of commercial real estate value.
Risk hint: commercial and residential business coordination is not as expected.