In the first half of 2013, the company achieved operating income of 1.181 billion yuan, an increase of 77.95% over the same period last year; operating profit of 330 million yuan, an increase of 79.17% over the same period last year; net profit belonging to the owner of the parent company was 247 million yuan, an increase of 79.5% over the same period last year; and basic earnings per share was 0.78 yuan.
Fundamental description. The company is one of the earliest comprehensive real estate development enterprises in Guangzhou, mainly engaged in real estate development, investment, property leasing and management, and the projects are mainly distributed in Guangzhou and Changsha. The largest shareholder of the company is Guangzhou Pearl River Industrial Group Co., Ltd., with a stake of 27.11%; the actual control is Guangzhou SASAC.
Two projects boost the company's performance. The company's operating income in the first half of the year was 1.181 billion yuan, an increase of 77.95% over the same period last year, and the net profit was 247 million yuan, an increase of 79.5% over the same period last year. The performance growth is mainly due to the increase in sales settlement of the Guangzhou Pearl River Garden Project and the Changsha Pearl River Huacheng Project. In the first half of the year, the company's Pearl River Garden project added contracted residential area of 12500 square meters, sales reached 770 million yuan, currently uncontracted residential area of 36500 square meters; Pearl River Huacheng newly signed residential area of 2800 square meters, contracted apartment area of 1600 square meters, by the end of the reporting period, the residential part of the Pearl River Huacheng project has been sold out, the remaining unsold apartment area of 6900 square meters.
The long-term financial pressure increases, while the short-term financial pressure decreases. The asset-liability ratio at the end of the period is 63.61%. After excluding accounts received in advance, the real asset-liability ratio is 61.03%, an increase of 6.02% over the same period last year, and the long-term capital pressure is increased; the book currency fund at the end of the period is 1.943 billion yuan, an increase of 70.84% over the same period last year. "monetary funds / (short-term loans + non-current liabilities due within one year)" is 43.18 times, an increase of 2.42 over the same period last year, and short-term financial pressure decreased.
The future development strategy is clear. The company will adhere to the strategy of giving priority to residential and commercial real estate development, while developing pension, tourism and other diversified real estate, and adopt "one core and two wings", that is, the investment layout with Guangzhou as the core and Hunan and Hainan as the two wings, relying on property management to provide cash flow for real estate development. The company's ending inventory was 2.63 billion yuan, an increase of 68.42% over the same period last year, accounting for 53.14% of the total assets.
Profit forecast and investment rating. We expect the company's earnings per share from 2013 to 2014 to be 0.80 yuan and 0.93 yuan respectively. According to the company's latest closing price, the corresponding dynamic price-to-earnings ratio is 9 times and 8 times respectively, maintaining the investment rating of "overweight".
Risk hint. 1, industry competition risk; 2, macro-control policy risk.