Core ideas:

Settlement income fell, gross profit margin supported net profit rise

The total operating income in 16 years was 5.922 billion yuan, down 29.80% from the same period last year, and the net profit was 290 million yuan, an increase of 151.73% over the same period last year. While the scale of income decreases, there are two reasons for the increase in operating profit. First, the increase in the gross profit margin of real estate project settlement leads to an increase in the overall gross profit margin. Secondly, the scale of company expenses and asset impairment losses have decreased. The company's project performance in Beijing is relatively stable. The gross profit margin of the newly settled West Washington and Honolulu is more than 30%, while the non-Beijing project has also achieved a turnaround in 16 years. Wuxi Hongyi project settlement gross profit margin has increased by 49.4%.

The sales performance is stable and the performance has the potential for further growth

In the past 16 years, the company has signed sales of 7.823 billion yuan for the whole year. By the end of 16, the scale of accounts received by the company in advance was 7.982 billion yuan, an increase of 2.485 billion yuan compared with 15 years. At present, the proportion of shareholders' equity of the company is still high, the proportion of settlement of projects outside Beijing is declining, and the level of profit margin will be further improved.

Replenish the land reserve in Beijing and improve the security of funds

In terms of land development, the consortium formed by the 16-year company and Zhongtian Yixin Enterprise Management Service Co., Ltd. won the bid for the development, construction and cooperative operation of D3 and D4 plots in the third block of Tanzhesi Town, Mentougou District, Beijing. The company's net debt ratio and debt service level have improved slightly in 16 years.

The results for 17 and 18 years are expected to be 0.46 and 0.57 yuan respectively, maintaining a "buy" rating.

Beijing Investment Yintai has entered the settlement of major projects in Beijing this year, and have maintained a high level of profit margins, highlighting the company's resource advantages in Beijing. However, the high minority equity ratio still makes the performance contribution efficiency of income significantly lower than the industry average. It is expected that the company's asset-liability structure can be further improved through effective financing.

Risk hint

The company's sales project is concentrated, which is greatly influenced by the single city policy.