In the first three quarters of 2013, the company achieved operating income of 726 million yuan, an increase of 13.11% over the same period last year, an operating profit of 112 million yuan, an increase of 17.77% over the same period last year, and a net profit of 70.78 million yuan belonging to the parent company, an increase of 18.99% over the same period last year.
An overview of fundamentals. The company's largest shareholder is Zhejiang Wolong Real Estate Investment Co., Ltd., with a stake of 43.32%. At present, the main layout of the company's buildings under construction is in Qingyuan, Wuhan and Shangyu area of Shaoxing, and the cost of obtaining land for the projects in the three places is relatively low. Due to the carry-over of Tianxianghuating and Qingyuan Wuzhou projects, the company's performance improved in the first three quarters compared with the same period last year, with a total operating income of 726 million yuan, an increase of 13.11% over the same period last year, and a net profit of 70.78 million yuan, an increase of 18.99%.
Financial pressure rose year-on-year. The company's final asset-liability ratio was 57.68%. Excluding accounts received in advance, the real asset-liability ratio was 52.72%, an increase of 6.05 percentage points over the same period last year, and long-term capital pressure increased. At the end of the period, the book monetary funds were 694 million yuan, up 141.82 percentage points from the same period last year. The ratio of "monetary funds / (short-term loans + non-current liabilities due within one year)" was 1.28, a decrease of 0.93,The company's short-term capital pressure slightly increased compared with the same period last year.
Release the refinancing plan and invest in the construction of indemnificatory apartment. The company issued a refinancing plan in August this year, which intends to raise no more than 600 million yuan by issuing corporate bonds to invest in the housing construction projects of Shangyu indemnificatory apartment and Wuhan "villages in the city". We believe that the company's fund-raising investment belongs to the category of indemnificatory apartment, which is in line with the policy guidance direction. Once refinancing is conditional to start in the future, the company's refinancing application is likely to be approved.
The project reserve is rich. The company's ending inventory is 2.486 billion yuan, an increase of 13.23% over the same period last year, accounting for 66.78% of the total assets. The project reserve is relatively rich. The land cost of the company is relatively low, and the current land reserve is about 2.44 million square meters, which can meet the development needs of the company for 3-5 years.
Profit forecast and investment rating. We expect the company's earnings per share from 2013 to 2015 to be 0.12,0.15 and 0.19 yuan respectively. According to the latest closing price, the corresponding dynamic price-to-earnings ratio is 25 times, 20 times and 16 times respectively, maintaining the company's "neutral" investment rating.
Risk hints: real estate regulation and control policy risk; refinancing process is blocked risk.