In the first three quarters of 2011, the company achieved operating income of 840 million yuan, an increase of 210.72% over the same period last year; operating profit of 208 million yuan, an increase of 172.48% over the same period last year; net profit belonging to the owner of the parent company was 155 million yuan, an increase of 177.82% over the same period last year; and basic earnings per share was 0.64 yuan, with net assets per share of 4.26 yuan.
The main reasons for the substantial increase in performance are as follows: first, the increase in operating income is due to the settlement of the company's Pearl River Huacheng Project and Pearl River Garden Project in Changsha; second, the expense rate dropped significantly by 8.41 percentage points to 6.14% during the period.
The performance of sales rebate is better, but there is not much money left in advance. In the first three quarters, the company received 683 million yuan in cash for selling goods and providing services, an increase of 220.66 percent over the same period last year. At the end of the reporting period, the company's advance balance was 7 million yuan, down 95.71% from the beginning of the period.
Forecast a substantial increase in full-year results. As the third and fourth groups of the company's Pearl River Huacheng Project and the Pearl River Garden Project have entered the settlement period, it is expected that the net profit of this year will increase significantly compared with the same period last year under short-term insolvent pressure, and the asset-liability ratio is still high. At the end of the reporting period, the company's short-term loans and non-current liabilities due within one year totaled 100 million yuan, monetary funds of 797 million yuan, short-term insolvent pressure; the company's asset-liability ratio excluding prepaid payments was 59.8%, down 1.86% from the beginning of the period. but it is still high, and the long-term financial structure needs to be improved.
Profit forecast and investment rating. It is estimated that the company's EPS from 2011 to 2012 will be 0.73 yuan and 0.66 yuan respectively, with the previous day's closing price of 6.71 yuan, the corresponding PE is 9 times and 10 times respectively, maintaining a "neutral" investment rating.
Risk hint. The risk that the regulation time of the real estate industry is longer than expected; the risk that the sales and settlement progress of the company's real estate project is lower than expected.