Events. The company publishes its 2018 annual report. In 2018, the company achieved operating income of 20.494 billion yuan, down 1.53% from the same period last year; net profit belonging to shareholders of listed companies was 1.418 billion yuan, down 27.17% from the same period last year; and basic earnings per share was 0.63 yuan. The company pays a cash dividend of 2.0 yuan (including tax) to all shareholders for every 10 shares.
In 2018, the carry-over area of the company's real estate sales projects decreased, and operating income decreased by 1.53%. In the same period, due to the decline in investment income, the company's return net profit decreased by 27.17%. According to the company's 2018 annual report, the company added 1.4452 million square meters of real estate reserves in 2018, an increase of 53.34% over the same period last year. By the end of December 2018, the company has achieved a good result of more than 20 billion of the contract amount and rebate. In 2018, the company continued to optimize the company's debt structure and reduce financial costs by issuing medium-term notes, perpetual bonds, ABS at the end of the purchase, promoting cold-chain warehousing and logistics CMBS and other innovative financing models. In 2018, in the diversified innovation transformation with Shanghai as the main battlefield, the company made a positive breakthrough and preliminary results in the transformation of the overall business model of "1-7". In 2018, the company accelerated the transformation from a professional company to an integrated platform company by building a solid floor of five platforms, including commerce, logistics, supply chain, service and construction platform.
On January 4, 2019, the company announced that it plans to use the CMBS (Commercial Real Estate Mortgage-backed Securities) model to launch a special asset-backed program of no more than 600 million yuan.
Investment advice. Real estate and cold chain logistics two-wheel drive, "better than the market" rating. The company's main business is the comprehensive development and operation of real estate, logistics industry chain, is a collection of real estate development, construction, property, cold chain logistics and industrial chain as one of the domestic large-scale state-owned comprehensive group company. In the real estate development and management, the company adheres to the guiding principle of "intensive cultivation of key first-tier cities, deep ploughing of second-tier cities with energy levels, and expansion of opportunity-type potential new cities". The company's cold chain logistics industry chain business has large-scale bonded room and cold chain logistics park in Yangshan Free Trade Zone and Dahongqiao. The company has strong third-party logistics service capabilities in cold chain logistics, bonded supply chain logistics, urban cold chain distribution and so on. We estimate that the company's EPS in 2019-2020 is 0.80 yuan and 1.00 yuan respectively, giving the company 8-10 times dynamic PE in 2019, and the corresponding reasonable value range is 6.40-8.00 yuan, maintaining the company's "better than the market" rating.
Risk hint: the company's development project faces the risk of policy regulation and control, and the logistics business is vulnerable to the risk of economic downturn.
