Zhongzhou Holdings released its annual report of 8.11 billion in operating revenue, an increase of 61 per cent over the same period last year, and a net profit of 260 million, down 35 per cent from the same period last year.
The three-year strategic goal ends perfectly: the company has achieved a carry-over of 7.3 billion in the current period, 54% of which is located in Shanghai, and although the settlement scale has accelerated, the downward trend of gross profit margin has not changed. For the whole year, the company achieved a sales area of 850000 square meters, with a sales amount of 10.6 billion yuan, an increase of 104% and 43% respectively over the same period last year. While completing the plan at the beginning of the year, it also announced the smooth completion of the three-year strategic goal. According to our tracking, the current saleable value of the company is more than 20 billion, and the Sungang project is on schedule. At the same time, some of the equity mergers and acquisitions projects are expected to be launched in 2017. we expect the company to continue to break through and move towards 15 billion in 2017.
The layout structure continues to be optimized, and the acquisition of South China City tries not to follow the usual path: the company strides forward to more cities while optimizing the advantages of Guangdong, Chengdu and Shanghai in 2016. In the whole year, the land area increased by 207,000 square meters, with a floor area of 515,000 square meters. At the same time, with the rising heat of the land market, it also brings opportunities for revaluation of the company's stock resources. The company's golden platform project is revalued by 21.5 billion according to the value of equity land, and the scarcity is highlighted. In addition to traditional access to projects, in October 2016, the company plans to acquire 23.20% of the shares of South China City Holdings Co., Ltd. Although it is regrettable that the transaction eventually failed due to changes in the market environment, this acquisition attempt demonstrates the company's determination to expand into industrial real estate, and we look forward to more M & An and expansion efforts in the future.
The incentive mechanism has been gradually improved: in the past 15 years, the company has started the incentive mechanism twice, while in the past 16 years, the company has also begun to try out the project follow-up investment mechanism. In the past 16 years, the company clearly proposed to explore new business development and think about enterprise transformation, including real estate service industry based on property management, industrial real estate and the extension of "real estate + finance". The smooth implementation of the incentive mechanism will also add impetus to the company's growth and transformation.
Profit forecast and investment rating: we expect the company's EPS from 2017 to 2018 to be 0.71 yuan and 0.94 yuan respectively, maintaining the "buy" rating.