Event: the company announced its semi-annual report for 2016, with an operating income of 874 million yuan, an increase of 124.83% over the same period last year, a net profit of 68.5 million yuan for shareholders of listed companies, an increase of 8.00% over the same period last year, and a net asset of 1.938 billion yuan for shareholders of listed companies, an increase of 18.22% over the same period last year, with a basic EPS of 0.08 yuan.
De-chemical speed up, sales growth, the first-line layout landed steadily. In the first half of the year, the company's real estate business sales revenue reached 679 million yuan, an increase of 164.18% over the same period last year, accounting for 71.61% of the revenue scale; of which 651 million yuan was confirmed for real estate sales, a year-on-year increase of 177.16%; as of the end of June, the company received 1.128 billion yuan in advance accounts, an increase of 29.70% over the beginning of the year, and has reached 75.2% of the company's 16-year 1.5 billion revenue target. At present (as of the end of June), the company's real estate can be sold with an area of 4511 thousand square meters and a pre-sale area of 1298 thousand square meters (of which 411 thousand outstanding resources are from Jinan Tianye Center).
The company has clearly sought to enter the front line in 15 years. After the Yangtaishan project in Shenzhen was landed in June, it was announced on July 25 that it intends to invest 2400 million shares in cash to set up Beijing Tianhui Real Estate, and the first-line layout will be increased. In the current period, while the company's real estate business accelerated inventory removal, gross profit margin decreased by 16.9 pct compared with the same period last year, mainly due to the fact that there is no high gross margin in the current period and the decrease in the number of medium-and high-margin projects formed by commercial and residential settlement. We expect that with the obvious cost advantage of the Shenzhen project and the release of Jinan core high-quality commercial resources, the quality of revenue will be greatly improved. no, no, no.
The income of Mingkal Mine has increased by nearly 60%, and the territory of precious metal resources has been expanded rapidly. In the first half of the year, the company's mining revenue reached 195 million yuan, an increase of 58.25% over the same period last year, accounting for 20.56% of the revenue. Among them, Mingal achieved revenue of 195 million yuan, an increase of 56.14% over the same period last year, and a net profit of 76.99 million yuan, an increase of 174.93% over the same period last year, mainly due to a 25% increase in gold prices in the first half of the year and an increase in sales of rare element ores with higher value. The company's gold plate is closely seeking to search for high-quality mineral sources in Australia, and gradually achieve rapid expansion of resource reserves and production capacity by means of epitaxy. On August 17, the company announced that it had acquired the Australian gold production Pajingo project, and after the acquisition, the company's gold and metal reserves will increase to 257.4 ounces, which we estimate may contribute nearly 600 million yuan in sales each year, which is expected to gradually increase the proportion of revenue contribution.
If the financial industry does not change its original mind, it is expected to continue to feed the main industry. The financial business achieved 74.26 million yuan in revenue, accounting for only 7.8% of the revenue, but the gross profit margin was as high as 79.6%, an increase of 17.63 pct over the same period last year, mainly due to the new merger of Tianye small loan and Boshen lease. Although the company's 3.2 billion increase in the first half of the year ended due to changes in the policy environment, the company took over again to participate in the establishment of the Hengxin Fund and did not change its mind. We believe that the future contribution of financial business to profits should not be underestimated, at the same time, it can well feed the real estate and mining industry, and the synergy effect is significant.
Investment advice: the company reported three rounds of performance in real estate, mining, finance and venture capital, and the results of the division system were obvious. in the first half of the year, the company set foot in big venture capital, focusing on the medical and Internet fields. and nearly $90 million to participate in the 360 privatization process accelerated, short-term catalysis is clearly visible. We reiterate that the reasonable valuation of the company is 19.5 billion (and the gold extension and first-line land appreciation have not been taken into account), and the corresponding target price is 22.03. it is estimated that the EPS for 2016-2018 will be 0.20,0.27,0.34, and the corresponding PE will be 73.1X, 53.9X and 42.6X, maintaining the "buy-A" rating.
Risk hint: the performance fell below expectations and the price of gold fell.
