Main points of investment
The interim results of 2016 are in line with expectations: the annual revenue of pattern in mid-2016 was 5.362 billion yuan, an increase of 47.7% over the same period last year. The increase in turnover was mainly due to the increase in property management income and the building area delivered by development properties. The gross profit was about 1.48 billion yuan, an increase of 27.5% over the same period last year; the gross profit margin was 27.6%, down 4.4 percentage points from the same period last year, and the decline was mainly due to the increase in the proportion of property management services provided by the contracting system with lower gross profit margin. The net profit belonging to the shareholders of the listed company was 266 million yuan, an increase of 28% over the same period last year, the net profit margin was 5%, and the medium-term performance was in line with expectations.
Contract sales maintain scale: from January to June, the company realized contract sales of 4.811 billion yuan, an increase of 18.9% over the same period last year, with a contract sales area of 448000 square meters. The monthly contract sales in July were 2.89 billion yuan, and the cumulative contract sales from January to July were 7.7 billion yuan, achieving the annual contract sales target of 64%. The land reserve of the company is sufficient, and the construction area of the planned land reserve is 16.77 million square meters, of which the property planning floor area of the signed framework agreement is 9.95 million square meters, and the first-tier cities account for 43.2% of the land reserve.
Our point of view: pattern year is the vanguard of the transformation in the real estate company. Centering on the theme of comprehensive community operation and service, the company has built two service platforms: colorful Life and Meiyi Home, and completed the strategic transformation of real estate, hotel and commerce. We have created a "community +" business ecosystem, established a financial service engine, and the company will devote itself to building a comprehensive financial holding group based on community services. From the valuation point of view, the company is currently 4 times PE, dividend yield of more than 4%, other innovative business development space, it is recommended to pay attention to.
Risk hint: real estate destocking is not as expected, macroeconomic growth is slowing, and business transformation is not as expected.