2010 performance is in line with expectations
In 2010, the company achieved a total operating income of 457.5179 million yuan, and realized the net profit belonging to the parent company of 518.9491 million yuan, equivalent to about 0.98 yuan per share, which fulfilled the profit commitment made by the company in the private placement, which is in line with our expectations.
The company is transforming to the "real estate + X" strategy.
In the annual report, the company mentioned that in 2011, while doing a good job in the main real estate business, the company will pay close attention to industries such as biomedicine, new energy, energy conservation, environmental protection and finance, and gradually cultivate the company's second main business. Therefore, we can judge that the company will transform and implement the "real estate + X" development strategy, which will help to smooth the risks of the real estate industry and improve the stability of the company's performance.
Profit forecast
Based on the assumption of the settlement process of the company's real estate project, we believe that the operating income of the company from 2011 to 2013 is 3.395 billion yuan, 4.392 billion yuan and 6 billion yuan respectively; the net profit attributable to the owner of the parent company is 619 million yuan, 803 million yuan and 985 million yuan; the corresponding earnings per share are 1.17,1.52 yuan and 1.87 yuan respectively; the valuation of PE is 14.36,11.06,9.02 times respectively.
Investment suggestion
Continue our strategic view of the real estate industry in 2011: when regulation and control become the norm, enterprises that implement the "real estate + X" strategy will become a bright spot, as we have said, since 2011, the top three companies in the real estate sector are all "real estate + X" strategy, so although the valuation level of gorgeous families is slightly higher than that of their peers, we still maintain the company's "buy" rating.
Risk hint: real estate industry regulation risk, "real estate + X" strategic risk