In the first quarter of 2010, the company achieved operating income of 1.26 million yuan, down 53.23% from the same period last year; net profit belonging to the parent company was 347 million yuan, an increase of 55 times over the same period last year; and basic earnings per share was 0.66 yuan.
The performance mainly comes from the investment income of 479 million yuan: during the period, the performance of the company's main business is mediocre, and there is basically no project settlement, and the substantial increase in net profit is mainly due to the transfer price of 788 million yuan and investment income of 479 million yuan from the transfer of 31.52% equity in Hongsheng company. After the completion of the transfer, the company still holds 20% of Hongsheng's equity, which is measured by the equity method after the cost method is changed. as a result, the book value of long-term equity investment increases by 89.8% compared with the beginning of the period, to 1.072 billion yuan. If this part of the stake is sold, it will bring the company an investment income of about 300 million yuan and an after-tax profit of about 250 million yuan.
The performance target for 2011 is 3 billion yuan. At present, the lock of the advance payment on the performance is relatively small: at the end of the first quarter, the account received in advance is 654 million yuan, which is about 98 million yuan higher than that at the beginning of the period.
The advance money mainly comes from Suzhou "gorgeous family Taishang Lake" and "Huijing Tian Di" projects.
Presale accounts currently target 22% of the performance target.
The project reserve is small, but the project profitability is very strong: at present, the company mainly has two large-scale projects: "gorgeous Family Taishang Lake" and "Huijing Tiandi" (51% equity), with a planned construction area of 1.09 million square meters and an equity construction area of about 1.02 million square meters. In addition, the major shareholder holds a 49% stake in Jindui Real Estate (the main development project) and promises to transfer part or all of it to the listed company when the conditions are ripe. The profitability of these two projects is very strong: the saleable area of the "Huijing Tiandi" project is about 100900 square meters, and the sales price can reach 60, 000 square meters. After all sales, it is expected to achieve sales revenue of 4.5 billion yuan, resulting in a net profit of about 1 billion yuan. Taishang Lake project is a townhouse or single-family villa, settlement gross profit of about 50%. In addition, the company still holds a 20% stake in the Xintiandi project and is expected to make a profit in the form of equity sales in the future, with a return on investment as high as 50%. The company plans to start construction of 210000 square meters in 2011, complete 296000 square meters, according to the average annual settlement of 200000 square meters, the project reserve can maintain the steady development of the company in the past five years.
Actively develop the second main business: in order to avoid the risk of fluctuation in the real estate industry, the company uses Shanghai gorgeous family investment company as a platform to pay close attention to and actively invest in biomedical, new energy, energy conservation, environmental protection and financial industries. In 2010, it acquired a 100% stake in Guangdong Huafu Investment for a total price of 555 million yuan, and acquired a 40% stake in Huatai Great Wall Futures indirectly, with an initial investment cost of 240 million yuan and a profit or loss of 10.71 million yuan in 2010. The company plans to achieve an equity investment plan of no more than 2 billion yuan in 2011.
Maintain the investment rating of "overweight". We predict that the company's earnings per share in 2011 and 2012 are 1.22 yuan and 1.48 yuan respectively, according to the company's recent closing price of 18.23 yuan, the corresponding dynamic price-to-earnings ratio is 15 times and 12 times respectively. Maintain the investment rating of "overweight".