Shunfa Hengye released its quarterly report for 2017, with operating income of 5.744 billion, up 104.85% from the same period last year, and net profit attributable to the parent company of 630 million, up 125.43% from the same period last year.
Profit margin continued to improve, revenue and net profit increased significantly: the company's revenue and net profit increased significantly in the third quarter, mainly due to the delivery of Miyazai Meicheng, Fuchun Fengjing, Ze Runyuan Phase II and Chunjiang Yueming projects, and the overall settlement volume for the whole year increased significantly compared with the same period last year. Although the company's sales management expense rate has slightly increased to 3.2% compared with 2016, it is expected that the volume and price improvement of settlement resources will continue, and the company expects the cumulative net profit attributed to shareholders of listed companies to increase by 80.64% over the same period last year. 101.81%. In terms of sales, the company realized cash flow of 2.285 billion yuan in the first three quarters of selling goods and providing labor services, down 40.45% from the same period last year. In order to comply with the trend of de-inventory in the market, there are no new projects for sale in 2017. at present, there is not much available for sale. in the future, we still need to pay attention to the progress of the project to replenish the inventory. Look forward to the transformation of the project: the company's projects are mainly concentrated in Zhejiang (Hangzhou, Tonglu), Anhui (Huainan), Jiangsu (Nantong) three provinces, most of the projects have been completed and delivered. The company's land reserve is mainly concentrated in Huainan, Anhui Province, with a total construction area of 513 million square meters, which is the guarantee of future performance. Because there was no new land in 2017 and the company made a series of financing actions last year, the company's financial situation improved significantly. The company's net debt ratio was-80% in the third quarter of 2017, reaching an all-time low in recent years. At the same time, the pressure on short-term debt was 0%, down 87 percentage points from the end of 2015. A good capital structure lays a financial foundation for future international expansion and possible new business models.
Overseas layout landed, Ju Neng City continues to advance: the company's long-term development strategic goal since 2016 is clear: to set the goal of the real estate construction of collective industries (environmental protection, energy conservation, intelligence, technology), resources and innovative life. Casting the Shunfa Hengye brand means that the company will not only be a residential developer in the future. The company cooperates with Wanxiang Group to increase overseas real estate investment and innovative project layout, which is expected to form a new growth point.
Profit forecast and investment rating: we expect the company's EPS to be 0.48 yuan in 2017 and 0.56 yuan in 2018, maintaining the "overweight" rating.
Risk hint: the real estate industry is subject to regulatory factors.