"Development + holding" helps to operate more steadily in the future, maintains the "buy" rating, and focuses on the layout of the core first-and second-tier cities, with abundant land reserves and low cost; at the same time, the company also holds a large number of high-quality properties in the core cities. We keep the previous profit forecast unchanged. We expect the net profit growth rate of Jindi Merchants to be 14.39%, 14.70% and 14.47% respectively from 2020 to 2022. The EPS is 0.26,0.30,0.35 yuan respectively. The current share price corresponds to 5.1,4.5,3.9 times of PE, maintaining the "buy" rating.
The acceleration of settlement promotes the growth of performance
Jindi Merchants released results for the first half of 2020: in the first half of 2020, the company achieved operating income of 5.67 billion yuan, an increase of 85% over the same period last year; net profit of 1.608 billion yuan, an increase of 39% over the same period last year; and basic earnings per share of 0.10 yuan.
The company's high revenue growth rate is mainly due to the obvious growth rate of the company's property development, property investment and management business income, with property development, property investment and management, and small loan business accounting for 90.8%, 6.6% and 2.6%, respectively. the growth rates were 99.0%, 33.1% and-24.0%, respectively. The company's gross profit margin declined slightly, with a gross profit margin of 35.8% in the first half, down 9.7 percentage points from the same period last year, but still at a high level in the industry.
The sales performance is considerable, and the land acquisition continues to be steady.
In the first half of 2020, the company achieved sales of 31.2 billion yuan, an increase of 19% over the same period last year; the sales area was 1.34 million square meters, an increase of 8% over the same period last year, accounting for 31% of Jindi Group's sales. The impact of the epidemic pushed the company's land acquisition area to decline slightly in the first half of the year compared with the same period last year, but the size of the land reserve is still rising steadily. In the first half of 2020, the company acquired 13 cases of land, with a land area of 2.37 million square meters, a decrease of 7% compared with the same period last year; the amount of land acquired was 15.466 billion yuan, which was 49.6% of the current sales amount; and the average land price was 6500 yuan per square meter, which was 28% of the current sales price.
By the first half of 2020, the company's land reserve was 1720 million square meters, an increase of 12% over the same period last year. By city, 20% is located in first-tier cities, while the remaining 80% is in Xuzhou, Wuhan, Kunshan, Nanjing, Qingdao, Jinan and other cities.
Leverage remains low and debt repayment pressure is low.
In the first half of 2020, corporate loans totaled 11.56 billion yuan, down 24% from the same period last year, of which related party loans, bank loans and other loans accounted for 63.9% and 36.1% respectively.
In the first half of 2020, the company's asset-liability ratio was 70%, and net debt ratio was 27%, an increase of 1 percentage point over the same period last year.
Risk tips: industry sales fluctuations; policy adjustment leads to operational risks.