The company announced that the revenue from January to September was 1.387 billion yuan (- 8.44%), the net profit was 13 million yuan (- 81.53%), and the non-net profit was-3 million yuan-113.2%. Basic EPS0.03 yuan-83.3%.
Main points of investment:
The performance has declined, but the funds for the pre-sale of real estate projects in Nanjing and other places have increased significantly. In the first three quarters of 16, the revenue was 1.387 billion yuan-8.44%, the net profit was 13 million yuan-81.53%, and the non-net profit was-3 million yuan-113.2%. The profit decline was mainly due to the decrease in revenue carried over from real estate projects in the current period, the promotion of some stock of commercial housing, and the loss of some projects such as Wuyi in Beijing. Thanks to the growth in sales of the Mingshi Garden project in Nanjing, the cash received from the sale of goods and services increased by 130.30%, and the amount received in advance increased by 188.85% to 2.52 billion yuan. In the first half of the year, the real estate sales income was 1.053 billion yuan, and the sales area was 121300 square meters. according to the changes in settlement and advance collection, it was inferred that the sales in the third quarter were 5-1 billion yuan. Generally speaking, whether the value of the real estate project can be released as scheduled is directly related to the performance of the company. In the second half of the year, the company will pay close attention to the reconstruction of the old building at 3-7 Wing Hing Street, Wuyi, Hong Kong. The overall sale of the "Park" project will speed up the construction of the Wuyi Mingshi Garden project in Nanjing and strive for some buildings to meet the carry-over conditions. In addition, the market value of Huiquan Beer shares held at the end of the period is about 150 million yuan, which can be reduced. About 2.0324 million shares (including 332400 shares of the asset management plan) have been sold in the current period, with a profit of about 17 million yuan.
The rights issue and sales rebate have greatly alleviated the pressure on short-term debt service. A rights issue of 1.075 billion yuan was completed at the beginning of the year, and the bank loan was repaid. At the end of the period, the monetary fund on hand was 2.106 billion yuan, and the short-term debt gap of 303 million yuan was the best in recent years; the asset-liability ratio was 81%, and the net debt ratio was 137%, which was significantly lower than that of the same period last year and the end of last year by 169,169 and 188pc respectively. Three fees accounted for 16.6% of the decline in 3.1pc, of which financial expenses due to exchange gains decreased by 41.01% year-on-year.
Tongzhou project will be the flashpoint of the company's performance. The company's projects are mainly distributed in Beijing, Fujian, Chongqing, Yangzhou and other cities, as well as Hong Kong and Kenya, with more than 3 million square meters of project planning and nearly 2 million square meters of uncompleted construction. The most interesting point is the Tongzhou project, the location and scale are very rare. For the Wuyi Garden South District project to be developed, indemnificatory apartment has entered the construction stage of the upper main project, and the demolition and establishment of the commercial housing project is under way. The total land area of the project is 381,000 square meters, the construction land area is 285,000 square meters, and the total construction area is 109 million square meters, of which 727 million square meters are on the ground, including: 516 million square meters of residential buildings (including commercial housing 451 million square meters, indemnificatory apartment 6.5 million square meters), 1511 thousand square meters of commercial offices, 16 thousand square meters of hotels and others. The price of nearby new housing projects has reached 40, 000 yuan per square meter, and its entry into the market and settlement will bring considerable profit growth.
Major shareholders increase their holdings, two shareholders reduce their holdings, Taihe enters the top ten shareholders for the first time. Fujian Energy Group, the second largest shareholder, currently holds 20.70% of its shares and has disclosed plans to reduce its holdings by centralized bidding on March 28, 17, with a price of 9.9959 million shares (2%) at a price of ≥ 14.50 yuan per share. Fujian Construction Engineering, the largest shareholder, accumulated 6.1556 million shares (excluding rights issue) from July 28, 2015 to June 20, 2016, accounting for 1.42%, the proportion of shares increased from 30.58% to 32.41%, with an average cumulative cost of 15.4 yuan per share. Taihe Group Co., Ltd. appears for the first time in the top 10 shareholders, holding 1.41%. Taihe Group is a well-known developer rooted in Fujian, and high-end property development has brand advantages. If you can not cooperate in the real estate business, it will contribute to the development of the company's real estate business.
The company's traditional business has a certain influence in the international market to maintain steady development; the real estate business has significantly benefited from the recovery of the market, sales and settlement have ushered in a better window. The Tongzhou project is about to enter the market and is expected to become an important support for its performance in the next few years. RNAV21.3 yuan per share, 16-18EPS 0.29Universe 0.38Cash 0.52RMB, "recommended" rating.
Risk hint: Tongzhou project schedule is not as expected, international business geopolitical risk, exchange loss risk.