incident. The company announced its 2018 annual report. During the reporting period, the company achieved operating income of 17.864 billion yuan, an increase of 15.58% over the previous year; net profit attributable to shareholders of listed companies was 1,190 million yuan, an increase of 4.31% over the previous year; and achieved fully diluted earnings per share of 0.35 yuan. The company plans to distribute a cash dividend of 0.12 yuan (tax included) for every 10 shares to all shareholders in 2018.
In 2018, driven by real estate carry-over, the company's revenue increased by 15.58%; during the same period, the increase in the company's minority shareholders' share of profit and loss reduced the increase in net profit to 4.31%. According to the company's 2018 annual report, in 2018, the company's property development achieved revenue of 15.133 billion yuan (including parking spaces), an increase of 20.18% over the previous year. In 2018, the company achieved contract sales amount of RMB 28.2 billion. In 2018, the company invested in property (including hotels) and achieved revenue of 2,629 billion yuan, an increase of 1.15% over the previous year. By the end of 2018, Beichen Exhibition Group, a subsidiary of the company, had entered 19 cities across the country, managed 11 exhibition venues and 15 hotels, and achieved a total area of 2.76 million square meters of managed exhibition venues. In terms of health and old-age care, the company's first health and pension project, the Changsha Beichen Ou Baoting International Nursing Center, officially opened. The center now has 224 rooms with more than 400 beds. On March 21, 2019, the company announced that in 2018, the company achieved total land reserves of 8.4611 million square meters, equity land reserves of 7,5303 million square meters, and additional real estate reserves of 1,464 million square meters; in 2018, the company achieved a new construction area of 2,8144 million square meters, a year-on-year decrease of 6.40%; in 2018, the company achieved a sales area of 1,814 million square meters, a year-on-year increase of 45.82%, and sales amount of 28.209 billion yuan, up 26.64% year on year.
Throughout 2018, the company won a total of 894,700 square meters of construction land through tenders. The company's 2018 annual report revealed that in 2019, the company's property development is expected to achieve a new construction area of 1.96 million square meters and a resumed work area of 8.88 million square meters. In 2019, the company strived to achieve sales of 1.6 million square meters and signed a contract amount of 25.3 billion yuan (including parking spaces).
Investment advice. Create a first-class complex real estate and exhibition brand with a “superior to the market” rating. The company's projects are concentrated in Beijing and Changsha, and is involved in development, commercial and investment properties. The company's projects in Beijing are of high value, the exhibition business is a national leader, and is being transformed into a high-profit upstream business. We expect the company's EPS to be 0.44 yuan and 0.54 yuan respectively in 2019-2020, and the corresponding RNAV is 12.38 yuan. Considering that the company is actively transforming innovative businesses such as “exhibition+Internet”, the health care industry, cultural and creative industries, etc., and has excellent assets, the company was given 11 times PE and 0.50 times RNAV in 2019. The corresponding reasonable value range was 4.84 yuan to 6.19 yuan, and the company was given a “superior to market” rating.
Risk warning: The industry faces two major risks of interest rate hikes and policy regulation.