In 2010, EPS0.37 yuan increased by 19% over the same period last year, slightly lower than expected.
In 2010, the company achieved operating income of 1.197 billion yuan, an increase of 18.8% over the same period last year. The net profit belonging to shareholders of listed companies was 283 million yuan, an increase of 19.14% compared with the same period last year, slightly lower than expected. The reason is that there is a slight discrepancy between the settlement structure and our expectations, resulting in a deviation in the final net profit margin. The company has no dividend distribution plan this year.
Ample paper funds and strong performance lock-up
At the end of the period, the company has a book currency fund of 1.199 billion yuan, which is 17.56 times the sum of short-term loans and non-current liabilities due within one year, and the outstanding land payment at the end of the period is only 18.76 million yuan, so it can be judged that the company will have abundant operating funds in the coming year. The company received 1.676 billion yuan in advance at the end of the period, all of which were outstanding commercial housing sales, locking in 93% of our forecast income in 2011, with strong performance lock-in.
Real estate projects have high quality reserves, strong profitability and are little affected by regulation and control.
The company's land reserve is mainly distributed in the second, third and fourth-tier cities in Shandong Province, more than half of the land reserve is distributed in unlimited purchase areas, while the land reserve takes into account both commercial and residential, so on the whole, the company's operation is less affected by regulation and control. In addition, most of the company's projects are laid out in advance before urban planning and expansion, so the land cost is relatively low, and the average floor price of the project is less than 1000 yuan / square meters. in addition, the company attaches great importance to the construction of supporting facilities and landscape of the project, so as to enhance the value of the project and increase the profit of the unit. The net profit margin for the whole of last year was as high as 23.6%, higher than that of other leading companies in the industry.
Pay attention to the process of mining investment and maintain the rating of "cautious recommendation"
During the reporting period, the company established the dual main business development strategy of "real estate" and "mining resources", adjusted the structure of the board of directors, successfully built a domestic and international mining investment platform, and mining investment was gradually approaching. In view of the fact that the target has not yet been confirmed, we will not calculate the profit of the mining investment for the time being. Only considering the real estate business, we estimate that the company's RNAV is 10.68yuan, and the EPS is expected to be 0.55,0.72 and 0.90 yuan in the next three years, corresponding to the PE level of 30.9,23.4 and 18.7 times, the current stock price has reflected the positive expectation of some mining investment, maintaining the "cautious recommendation" rating, if the company makes further progress in mining investment in the future, it is expected that the stock price will have a better performance.
