Shunfa Hengye released its mid-2016 report, with operating revenue of 2.15 billion, up 7.58% from the same period last year, and net profit attributable to the parent company of 240 million, up 9.41% from the same period last year.
The profit increases steadily, and the performance still has flexibility: the improvement of the settlement scale and quality of the company in the first half of the year promotes the stable improvement of the performance, and the reason why the increase of the company's net profit is greater than the revenue is as follows: 1. The profit margin of the company increased by 2 percentage points to 27% in the first half of the year compared with the same period last year, mainly because projects with better gross margins such as Hengyuan and Kangzhuang entered the settlement cycle. 2. The expense rate has improved, and the company's sales expense rate has decreased by 0.3 percentage points compared with the end of 2015. Although the sales area of the company has decreased slightly, the average sales price has increased from 15000 / square meters in 15 years to 17000 / square meters. According to our estimates, the value of the company's stock plus new goods is expected to exceed 10 billion in 2016, and we expect annual sales to exceed 6 billion.
The fixed increase was successfully completed, Zhejiang Hangmin premium participation: the company successfully completed the fixed increase in June 2016, raising a total of 1.6 billion yuan, the highlight of this refinancing is: 1, the strategic significance is clear, the company listed in 2009 for the first time equity refinancing; 2, the introduction of strategic investors, Zhejiang Hangmin full subscription to become the company's second largest shareholder, the subscription price is still 18.7% higher than the current price. The company's financial situation improved significantly in the first half of the year, with a net debt ratio of-41%, a record low in recent years, and a short-term debt pressure of 14%, down 73 percentage points from the end of 2015. A good capital structure lays a financial foundation for future international expansion and possible new business models.
Looking forward to the further promotion of internationalization, Ju Neng City introduces the opportunity: the company's future development ideas are gradually clear: 1, actively promote the cooperation of American real estate business platform. Wanxiang USA has rich experience in investing in the United States, and the cooperation with the major shareholder American platform will help to increase investment in overseas real estate, which is expected to form a new growth point and realize the linkage between domestic and foreign markets. 2. Actively participate in the construction of Ju Neng City, a major shareholder. In the next 10 years, Wanxiang Group will invest 200 billion yuan to build a universal innovative energy gathering city, which will include new energy components, batteries, passenger cars and other industries. As the core real estate platform of Wanxiang Group, it will play a core role in the development, construction and future operation of Ju Neng City.
Profit forecast and investment rating: we expect the company's EPS for 16-17 years to be 0.32 yuan and 0.40 yuan respectively, maintaining the "overweight" rating.