Pudong Jinqiao 1--3Q16 performance of 0.42 yuan per share, lower than expected Pudong Jinqiao announced 1--3Q16 results: operating income of 1.1 billion, down 3.6% from the same period last year; net profit belonging to the parent company was 470 million, up 24.6% from the same period last year, corresponding to a profit of 0.42 yuan per share.
The real estate settlement slowed down and the leasing business was stable: the company's real estate sales settlement income in the first three quarters was 140 million yuan (confirmed sales income in the third quarter was 0), rental income was 850 million yuan, and hotel apartment income was 100 million, year-on-year changes were-32.4%, 1.1%, 19.1%. The company's comprehensive after-tax gross profit margin during the period was 60.0%, up 7.3 percentage points from 52.7% in the same period last year, mainly due to the lower land value-added tax and the impact of revenue change in the current sales project.
Investment income increased significantly: the company recorded an investment income of 66.76 million yuan during the period, an increase of 98.2% over the same period last year, mainly due to the receipt of 58.08 million yuan in dividends from Oriental Securities during the period, a significant increase from 24.89 million yuan last year.
The net debt ratio has increased: the company's net debt ratio at the end of the period was 46.8%, which was 7.9% higher than that at the beginning of the period, but it was still at a low level; the cash on hand at the end of the period was 960 million yuan, which was lower than the sum of short-term loans and non-current liabilities due within one year. There is a certain degree of financial pressure.
Trend of development
The Shanghai Lingang project is expected to boost performance: the company won the "Dazhi Road" project at the end of 2015, with a total of 11 properties for R & D factories, with a total construction area of about 130,000 square meters, further replenishing the industrial real estate resources reserve of the free trade zone. At the same time, the company's Lingang Biyun 10 project under construction will also be pre-sold in the fourth quarter, and the company's real estate development business revenue is expected to return to growth.
Profit forecast
We keep our 2016 earnings per share forecast unchanged for 17 years.
Valuation and suggestion
At present, the company's share price corresponds to 35.9 Universe 26.5 times the 17-year price-to-earnings ratio of 2016 Compact. We maintain a neutral rating and a target price of 19.00 yuan, which is 0.89% lower than the current share price. At the same time, it maintains the B-share recommended rating and the target price of $2.2, corresponding to 27.6 to 20.3 times the price-to-earnings ratio of 2016.
Risk.
The macro-economy is declining.