Summary of 2011 performance: the company achieved operating income of 1.627 billion yuan, up 30.2% over the same period last year; operating profit of 407 million yuan, up 19.25% over the same period last year; net profit belonging to the owner of the parent company was 405 million yuan, up 64.15% over the same period last year; and basic earnings per share was 0.38 yuan per share. No distribution, no increase this year.
The increase in performance is due to the increase in the carry-over scale and compensation. The company completed its restructuring in May 2009 and transformed into a comprehensive developer located in the Yangtze River Delta region of Ningbo (62%), Hangzhou (6%), Changshu (22%) and Taizhou (10%). The development products are mainly residential and office buildings. There are two reasons for the substantial improvement in the company's performance in 2011: 1. The scale of settlement has increased. The main carry-over projects of the company this year are the second and third phases of the Shanghu Central Garden project and the remaining rooms in Rong Anqin Bay, and the carry-over volume has increased significantly compared with the same period last year. 2. Get compensation from the government. The company is located in Gaoqiao Town, Yinzhou District, Ningbo, a commercial land and above-ground buildings are included in the scope of land requisition and demolition, the company obtained 112 million yuan in relocation compensation to be included in non-operating income.
Sales have soared. During the reporting period, the company mainly sold projects such as Shanghu Central Park, Ronghe Mansion, Ronan Washington, Rongan House, etc., with a total sales area of 165000 square meters, with a sales amount of 2.608 billion yuan, an increase of about 90% over the same period last year. The sharp increase in sales is mainly due to the opening of a number of new projects in the company in 2011, a substantial increase in available resources, and the introduction of preferential promotions for many projects. By the end of 2011, the company still received 1.952 billion yuan in advance, with a high degree of performance guarantee.
If you take the land carefully, you will expand the reserves in the Midwest. In 2011, the company sold only one commercial and residential plot in Ninghai County, Ningbo City, with a construction area of about 95000 square meters, and the total reserve of the proposed project under construction is about 1.13 million square meters. The company said that in the next three years, the expansion of land reserves will be concentrated in 2 provincial capitals (Hangzhou + X), 2 prefecture-level cities (Ningbo + Taizhou) and 2 county-level cities (Changshu + Ninghai). Another provincial capital city will be carried out in the central and western regions and inland provincial capital cities.
There is short-term debt repayment pressure. As of the end of 2011, the company's paper cash was 473 million yuan, up 182% from the beginning of the year due to a sharp increase in sales, but the coverage of short-term liabilities was still low, only 0.27. After deducting the amount received in advance, the real debt ratio is 58.72%, which is higher than the industry average.
Expand the industries of new energy and new materials. At the same time of disclosing the annual report, the company announced that it plans to set up a new material company in Ningbo, which will carry out research, inspection and investment in new material projects. the expansion of new industries is expected to open up new profit growth points for the company, but there are no specific investment projects at present.
Profit forecast and investment rating. We estimate that the company's EPS for 2011-2012 will be 0.44 yuan and 0.61 yuan. Based on yesterday's closing price of 7.02 yuan, the dynamic price-to-earnings ratio is 16 times and 12 times, which does not have the valuation advantage and maintains a "neutral" rating.
Risk factors: the sales settlement is not up to expectations, the downward sales lead to increased cash flow pressure, and there is great uncertainty in the research and development of new materials and new energy industries.