Main points of investment
Event: sunshine shares achieved revenue of 234 million yuan from January to June 2016, down 31.77% from the same period last year; realized net profit of-136 million yuan; and basic earnings per share-0.18 yuan.
Comments:
The decrease in carryover leads to a decline in revenue, and the company's fundamentals are secure. Sunshine shares achieved revenue of 234 million yuan from January to June 2016, down 31.77% from the same period last year, mainly due to the small settlement area of the current period. The company's main settlement projects are Chengdu Jinshang Center Project and Tianjin Yangliuqing Luling Jingyuan Project Phase I. In the first half of 2016, the company took advantage of the good market situation in Tianjin and accelerated the elimination of sales. By the end of June, the subscription amount for the first phase of Tianjin Yangliuqing Project area An exceeded 100 million yuan, and the subscription amount at the end of July was about 200 million yuan, a substantial increase over the same period last year.
Speed up the disposal of existing assets. In 2016, the company continued to re-establish strategies for individual heavy asset projects and actively look for cooperative transfer opportunities in order to reduce the company's financial pressure as soon as possible. For the Shanghai Yinhe Hotel project, the company intends to speed up the cooperation and transfer of the project in order to adjust the company's overall asset structure and reduce financial costs. At the same time, for some loss-making projects, the company is working hard to negotiate for early termination.
The risk-free rate of return continued to decline, and the value of commercial properties held by the company increased significantly. In the first half of 2016, the rental rates of projects such as Sunshine Mansion and Chengdu Jiuyan Bridge increased significantly, and the company's rental income is expected to increase steadily. Benefiting from the continuous decline in the risk-free rate of return, the value of commercial property has increased significantly according to the discounted cash flow method. The company holds commercial properties are located in the core first-and second-tier cities, each year has a stable rental income of 200 million to 300 million yuan. From the accounting value, the investment real estate held by the company is worth 5.041 billion yuan, but the real intrinsic value is close to 7 billion yuan.
Investment advice: sunshine shares focus on commercial real estate development and operation, bring rich profits through the development of the whole industry chain, commercial properties are mainly distributed in the core first-and second-tier cities. The company's share price is 8.50 yuan per RNAV, and its current share price is significantly lower than that of RNAV. The company holds a large number of high-quality commercial properties, which will bring rich rental income and property appreciation for the company. Sunshine shares extremely strong margin of safety, restructuring termination can not conceal the real value, maintain the "overweight" rating.
Risk tip: monetary policy tightens.
