Matters: according to the company's three-quarter report, the total operating income from January to September was 586 million yuan, an increase of 65% over the same period last year, and the net profit belonging to shareholders of listed companies was 76 million yuan, an increase of 82% over the same period last year. Realize EPS 0.24 yuan (after additional issuance and dilution), net assets per share as of the end of September 4.86 yuan. The results are in line with the results forecast of the three quarterly reports.
Peace viewpoint:
Chongqing project has entered the settlement cycle, with high performance growth: the company released a third-quarter report that the net profit attributed to shareholders of listed companies from January to September was 76 million yuan, an increase of 82% compared with the same period last year. From July to September, the net profit is expected to be 8 million yuan, an increase of 201% over the same period last year. The company's substantial growth in the third quarter is mainly due to the Chongqing project "Guoxing." The North Bank Jiangshan has entered the settlement cycle.
Sales grew high and gross profit margin declined: in the first three quarters, the company received 880 million yuan in cash for selling goods and providing services, an increase of 44 percent over the same period last year. At the end of the period, the advance account received by the company reached 1.15 billion yuan, an increase of 47% over the same period last year. The gross margin of settlement sales in the third quarter was 26.5%, down from 40% at the end of half a year, mainly due to the low gross margin of apartment products that were sold at reduced prices in the third quarter. Gross profit margin is expected to pick up in the fourth quarter as residential projects are settled in the fourth quarter.
The private placement of major shareholders has been completed, helping to speed up the operation of the company: the initial public offering plan of the company has been completed, and the proportion of shares held by major shareholders has risen to 59.65%. The improvement of the controlling shares of major shareholders will strengthen the operating mechanism of the company. in fact, after the announcement of the private placement plan, the company has used a variety of means to supplement the land reserve and enhance the strength of the existing real estate business, and the development of the company has been in the acceleration stage. The company has recently completed the renaming of the company and the change of management, bringing new impetus to the development of the company.
Open the business imagination space, the value of the platform will be gradually reflected: we judge that after the completion of the fixed increase, the company's operating efficiency and strategic planning will make substantial progress. We estimate that the diluted EPS of the company in 2015-2016 will be 0.36 and 0.43 yuan respectively, corresponding to 52 and 44 times of PE. Although the company's diluted performance valuation is higher than the industry average, we are optimistic about the platform value and soft power of the future company after straightening out the operating mechanism, and maintain the "highly recommended" rating.
Risk hint: the risk of declining profits in the real estate industry.