Less medium-term settlement leads to a decline in revenue and profits. In the first half of the year, the company realized operating income of 1.99 billion yuan and net profit of 320 million yuan, down by 55.0% and 8.4% respectively over the same period last year. The decline in return net profit is much smaller than the decline in operating income, mainly because the company included 490 million yuan in equity transfer income in the first half of the year, deducting non-return net profit of-50 million yuan. Full-year performance growth is expected to be supported, and accounts received in advance of the real estate business support performance settlement. The company's gross profit margin fell slightly. In the first half of the year, the company's gross profit margin was 34.9%, down 5.7% from the same period last year, and 30.5% after tax deduction, up 7% from the same period last year. The company's three-item expense rate was 28.8% in the first half of the year, and 7.9% in terms of sales, which is the lowest level since 2014. In the first half of the year, the company's home net interest rate is 16.1%. The higher return on investment is mainly due to the higher return on investment.
The asset-liability ratio is stable, and the net debt ratio is affected by the leasing business. By the end of June, the company's asset-liability ratio was 80.5%, and the real asset-liability ratio was 63.3%, which was basically stable. The net debt ratio is 220.8%. The reason for the increase is that the leasing business has a greater demand for financing after the company merges the table of medium-term leasing.
As of the end of June, the monetary capital on the company's account was 3.47 billion yuan, up slightly from the end of last year.
Real estate sales continued to grow and securities investment suffered floating losses. In the first half of the year, the company's sales area reached 7.54 million square meters, and the sales amount reached 7.22 billion yuan, an increase of 43.9% over the same period last year. By the end of June, the amount received in advance on the company's account reached 9.89 billion yuan, a new high, providing support for the company's future performance settlement. By the end of June, the company's land reserve was 429.7 million square meters, including 155.0 million square meters outside Lanzhou. The style of the stock market has changed, and the company's securities investment business has been dragged down. the securities investment company has accumulated a floating loss of 363 million yuan, and the fair value profit and loss of the company in the first half of the year is-140 million yuan.
Financial forecasts and investment suggestions
Maintain the buy rating and slightly lower the target price to 11.13 yuan (the original target price is 11.44 yuan). We slightly increase the company's earnings per share from 2017 to 2019 to 0.53,0.84,1.10 yuan (originally predicted to be 0.52,0.80,1.06 yuan). Using the comparable Company Law, the comparable company's PE in 2017 is 21 times. Give the company 21X PE in 2017, corresponding to the target price of 11.13 yuan.
Risk hint
The company's real estate sales fell short of expectations.
The company's financial investment fell short of expectations.