Main points of investment
Event: the company announced that its revenue from January to September 2015 was 586 million yuan, an increase of 65.25% over the same period last year, and its net profit was 76.1974 million yuan, an increase of 82.01% over the same period last year.
Comments:
Both revenue and net profit increased significantly, and the release of results accelerated. The company achieved a net profit of 76.1974 million yuan in the third quarter, an increase of 82.01% over the same period last year, mainly due to the carry-over of some products of the north bank Jiangshan project. The company achieved rapid performance growth in the third quarter, mainly due to losses in the third quarter of 2014 and an increase in settlement this year, while the company's acquisition of Xubin Real Estate brought more non-operating income, resulting in an increase in net profit. At present, the company's main settlement project is the Jiangshan project on the north bank of Chongqing, which was acquired earlier, the land cost is only 251 yuan / square meter, and the overall settlement gross profit margin is high. We expect that with the gradual settlement of the north bank Jiangshan project, the company's performance will be accelerated.
Caixin Group is strong and rich in resources, and attaches great importance to Guoxing Real Estate as its only listed company platform. With the help of the strong strength of major shareholders, Guoxing Real Estate has made rapid progress in new business development. In August 2015, Caixin Group established a contract energy management company through joint investment. In September, the company cooperated with Pangu Group Co., Ltd., Chongqing Kuoye Trading Co., Ltd., and agreed that the three parties would cooperate closely around the whole industry chain such as land acquisition, development, operation and later start-up incubation and financial services of the "Internet + E-commerce Industrial Park" project. We firmly believe that Guoxing Real Estate will continue to benefit from the extensive resource layout and strong comprehensive strength of Caixin Group in the future.
Investment suggestion: we are optimistic about the rich resources of Guoxing real estate shareholders to support the development of listed companies. It is estimated that the company's EPS in 2015, 2016 and 2017 will be 0.37, 0.47 and 0.55 yuan respectively, and the corresponding PE will be 50.5,39.8 and 34.0 times respectively, maintaining a "buy" rating.
Risk hint: future sales fall short of expectations.
