Events:
The company released its 2018 semi-annual report. During the reporting period, the company achieved revenue of 5.47 billion yuan, down 30.34% from the same period last year; net profit belonging to the owner of the parent company was 638 million yuan, up 2.36% from the same period last year; gross profit margin was 39.33%, up about 10.4% over the same period last year; and net profit rate was 11.66%, the highest in nearly three years.
The change in the structure of the carry-over project has brought about an increase in profits, and the scale of sales has continued to grow. In the first half of 2018, the company's revenue from property sales reached 4.149 billion yuan, down 36% from the same period last year, due to the reduction of settlement area in the current period due to the impact of the project settlement cycle, but because the settlement project this year did not include rehousing, so real estate business profits increased instead, pre-tax profit was 987 million yuan, an increase of 21.56% over the same period last year. From January to June, the company achieved sales of 14.75 billion yuan, an increase of 58.6% over last year, and the refund rate reached 95.65%, achieving rapid growth. The company currently has a land reserve of 8.456 million square meters, which can meet the development needs of the company in the next 2-3 years.
The combination of weight and weight can increase the income and profit of hotel and exhibition business. In terms of heavy assets, the company realized the coordinated development of office buildings, hotels and apartments by relying on a large number of mature properties concentrated in the core area of the Asian Olympic Games. During the reporting period, the rental rate remained high, with revenue of 1.274 billion yuan, an increase of 3.2% over the same period last year, and a profit of 425 million yuan, an increase of 0.73% over the same period last year. In terms of light assets, the company successfully signed 5 trusteeship projects and 5 consulting projects in the first half of 18 years, and was entrusted with the management of 11 hotels and 10 exhibition venues.
The net debt ratio has declined slightly, and the pressure on debt repayment is lighter in the short term. By the end of June, the company's interest-bearing liabilities were 29.85 billion yuan, with a net debt ratio of 135.5%, down about 29 percentage points from the end of 17. Interest-bearing liabilities are mainly long-term loans, accounting for 19.003 billion yuan, short-term debt is 5.953 billion yuan, cash short-term debt coverage ratio 1.81 times, short-term debt repayment pressure is not great. Due to the tightening of the financing environment in the industry, the average financing cost of the company during the reporting period was 6.16%, an increase of 0.22% over the whole of 17 years, which was in the middle of the industry.
Cover for the first time and give an overweight rating. It is estimated that the EPS in 2018, 2019 and 2020 is 0.41 yuan, 0.45 yuan and 0.51 yuan respectively, and the current stock price corresponds to 8.95,8.10 and 7.22 times the PE in 2018, 2019 and 2020, respectively.
Risk hint: sales fall short of expectations; regulation and control policies of the real estate market continue to tighten
