EPS1.08 yuan in the first half of 2018, a year-on-year increase of 374.5%

In the first half of 2018, the company achieved an operating income of 5.948 billion yuan, an increase of 82.43% over the same period last year, and a net profit of 718 million yuan, an increase of 374.52% over the same period last year.

Significant growth in sales and positive expansion

① sales increased significantly: in the first half of 2018, the company achieved sales area of 520100 square meters, an increase of 110.7% over the same period last year, and sales of 5.954 billion yuan, an increase of 90.7% over the same period last year. ② is active in expansion: in the first half of 2018, through multi-channel and multi-way expansion projects, the company added a total of 176000 square meters of land area in Chengdu, Guangzhou, Huizhou, Dongguan and Jiaxing, with a new floor area of 551000 square meters and a land acquisition area / sales area of 1.1.

The company always adheres to the strategic layout of "focusing on the region, deep ploughing the city, and multi-market linkage", focusing on the four major economic circles of "Guangdong-Hong Kong-Macau Greater Bay Area", "Greater Shanghai", "Chengdu-Chongqing" and "Bohai Rim": ① is based in Shenzhen and has the advantage of resources. the main projects are Luohu Sungang Logistics Center Project, Longhua Huangjintai Project and Baocheng District 26 Project. Among them, the Sungang logistics center project is one of the first ten major city renewal projects in Shenzhen. After years of deep ploughing, ② Huizhou region and Chengdu-Chongqing region have formed a strategic pattern of multi-city, multi-district and multi-market linkage; ③ Greater Shanghai region and Qingdao region rely on good word-of-mouth and market image, and their market recognition is increasing day by day.

Strong short-term solvency and good performance lock-up

At the end of the first half of 2018, the asset-liability ratio of the company excluding accounts received in advance was 77.6%; the guarantee ratio of short-term solvency-monetary funds / (short-term loans + non-current liabilities due within one year) was 1.2 times. The company's advance revenue at the end of the first half of 2018 was 10.529 billion yuan, and the lock on wind consensus forecast revenue in the second half of 2018 reached 269% (wind consensus forecast revenue in the second half of 2018 = 2018 wind consensus forecast revenue-disclosed first half revenue); after meeting the 2018 wind consensus forecast revenue, the remaining 6.622 billion yuan can still lock in 54% of the 2019 wind consensus forecast revenue.

The company gradually increased its own high-quality assets, including independent operation of five-star hotels, holding and operation of Grade An office buildings, etc., obtained a stable cash flow, provided strong support for the development of the main business, and effectively played a safe haven role. In the first half of 2018, the company's cumulative revenue from self-held assets has reached 534 million yuan.

Optimize the management system to fit the business development

In the first half of 2018, on the basis of the market-oriented salary system and project incentive scheme, the company further improved the incentive system from the aspects of equity incentive, employee stock ownership and project investment, and optimized the staff training system. The management system is increasingly optimized to fit the development model of "high turnover, scale expansion, strict control and increase efficiency".

Performance growth is expected to maintain the "buy" rating

We expect EPS in 2018 and 2019 to be 1.50 and 2.10 yuan, corresponding to PE of 11.1 and 8.0X, with expected performance growth and maintaining a "buy" rating.

Risk

If the regulation and overcorrection leads to the overshoot of the industry fundamentals, and the policy is not relaxed at the right time.