Events. The company publishes its 2019 semi-annual report. During the reporting period, the company realized operating income of 7.319 billion yuan, an increase of 13.72% over the same period last year; the net profit belonging to shareholders of listed companies was 503 million yuan, down 39.71% from the same period last year; realize basic earnings per share of 0.20 yuan (net profit of 503 million yuan after deducting the current interest on the company's perpetual debt divided by the latest total share capital).
In the first half of 2019, driven by the increase in the sales area of the main business of real estate, the company's revenue increased by 13.72%. In the same period, due to factors such as the product structure of sales, the company's net profit decreased by 39.71%. According to the company's semi-annual report in 2019, the company increased its real estate reserve area by 1.2291 million square meters in the first half of 2019, an increase of 61.53% over the same period last year. In the first half of 2019, the company continuously optimized the debt structure, reduced financial costs and obtained 4.2 billion yuan of new funds at low cost by issuing asset-backed securities (ABS), sustainable medium-term notes, medium-term notes and cold-chain warehousing and logistics asset support plans. In the first half of 2019, the company further accelerated its strategic transformation by laying out the construction of rental housing and the construction of historic towns.
According to the company's announcement on August 27, in the first half of 2019, the new construction area of the company was 3.033 million square meters, an increase of 52.64 percent over the same period last year; the completed area of the company was 663800 square meters, an increase of 311.28 percent over the same period last year. In the first half of 2019, the contracted area of the company was 816600 square meters, down 23.69% from the same period last year; the amount signed by the company was 10.535 billion yuan, down 22.51% from the same period last year. As of June 30, 2019, the company has leased a total real estate area of 366200 square meters. From January to June 2019, the total rental income of the company was 65 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 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, Yangtze River Delta metropolitan area and other key 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 0.62 yuan and 0.74 yuan respectively, giving the company 8-10 times dynamic PE in 2019, and the corresponding reasonable value range is 4.96-6.20 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.
