I. Overview of events

According to the 2018 annual report released by Electronic City, the company achieved an operating income of 2.234 billion yuan in 2018, an increase of 4.71% over the same period last year, and the net profit of shareholders belonging to listed companies was 410 million yuan, down 19.40% from the same period last year.

II. Analysis and judgment

The income keeps growing, and the project construction is gradually implemented.

In 2018, the company achieved operating income of 2.234 billion yuan, an increase of 4.71% over the same period last year, and the net profit of shareholders belonging to listed companies was 410 million yuan, down 19.40% from the same period last year. During the reporting period, the company's industrial park platform projects in Beijing, Tianjin, Xiamen, Kunming, Nanjing, Shuozhou and Qinhuangdao progressed steadily, and many projects inside and outside Beijing blossomed, with an area of 912000 square meters. Remarkable results have been achieved in the construction of the industrial park regional project.

Nationalized layout and adequate soil reserves

The company adheres to the strategy of radiating the whole country based on Beijing. In 2018, on the basis of promoting projects in Beijing, North China, South China and Southwest China, the company actively expanded projects in East China and Nanjing, and made major breakthroughs. By the end of 2018, the company's land reserve has a capacity of 1.5369 million square meters, an increase of 22.50% over the same period last year, which is 9.57 times the sales area of that year.

Financial stability and smooth financing channels

By the end of 2018, the company's asset-liability ratio was 51%, excluding prepaid payments, the asset-liability ratio was 49%, and the leverage ratio was at a low level in the industry; the money on hand reached 3.888 billion yuan, cash short-term debt Prida 8.62, short-term debt repayment worry-free. During the reporting period, the company successfully issued a special plan for property rental asset support of 1.8 billion yuan, actively expanding financing channels and laying a solid foundation for future development.

III. Investment suggestions

The company's income has grown steadily, the land reserve is abundant, the national layout has been steadily implemented, the financial situation is sound, and the overall risk can be controlled. It is estimated that the company's EPS in 19-21 is 0.41, 0.45, 0.49 yuan, corresponding to PE 14.7, 13.3, 12.1 times, and the highest, lowest and median PE is 28.3, 6.2 and 16.5 times respectively in the past three years, giving the company a "cautious recommendation" rating.

Fourth, risk tips:

The regulation and control of real estate policy has been tightened, and the development of industrial parks is not as expected.