The company announced 2016 semi-annual report, realizing revenue of 1.367 billion yuan compared with the same period last year + 117.2%, net profit of 39.6 million yuan (loss in the previous period), basic EPS0.05 yuan, weighted ROE1.99%.
Main points of investment:
Performance release revenue net profit achieved a big increase. 16H revenue of 1.367 billion yuan compared with the same period last year + 117.17%, return to the mother net profit of 39.6 million yuan (same period last year:-119 million yuan), deducting non-net profit of 2 million yuan (previous period:-158 million yuan).
The increase in profit was mainly due to the increase in real estate carry-over income and gross profit margin during the reporting period. Of the revenue, the carry-over income from real estate sales was 1.2833 billion yuan, an increase of 149.96% over the same period last year, and the gross profit margin was 25.22%, an increase of 8.84 percentage points over the same period last year. Import and export business, property services and other income accounted for only 6%, which was not basically the same last year; non-operating income was 12.96 million yuan + 2558%, mainly due to the liquidated damages generated by the buyer of the Lingshui project in Sanya who delayed the payment of the transfer. In 16, the company is expected to achieve an operating income of 7.61 billion yuan, and the current advance payment of 6.62 billion yuan basically locks in performance, which is expected to be over-fulfilled. The company plans to start a new construction area of 2554 million square meters, completed 3746 million square meters, as of the end of June, the new construction area of 8.64 million square meters, completed 30,000 square meters, the main time point is in the second half of the year.
The sales performance is good. In the first half of the year, sales of 3.731 billion yuan increased by 35.28% over the same period last year, with a signed area of about 78,000 square meters. The main contracted projects were 1.675 billion yuan for Washington, D.C., and 1.826 billion yuan for Imperial Mansion. In the first half of the year, the subscription removal rate of available sources in Beijing reached 81%. There are still 200,000 square meters of construction noodles available for sale this year, of which about 180,000 are located in Beijing, providing an adequate supply of goods to be sold. According to the average price in the first half of the year, it is estimated that the salable value in the second half of the year is about 9 billion yuan. According to 60% of the 80% removal rate, the annual sales are expected to be 91-10.9 billion yuan (9.8 billion yuan for the 15-year period).
The financial situation continues to improve and the risks are manageable. At the end of June, the asset-liability ratio of 89.68% decreased by 3 percentage points compared with the same period last year. The ending balance of inventory in the total assets was 22.36 billion yuan, accounting for 81.62% of the total assets, mainly property projects in Beijing area with strong liquidity. After deducting the prepaid debt ratio of 65%, the net debt ratio was 523%, down 272 percentage points from the same period last year. The monetary fund is 1.245 billion yuan, and the short-term debt gap is reduced to 2.2 billion yuan (5.8 billion yuan at the end of 15 years). In 2016, all kinds of loans of the company decreased by 897 million yuan, and 49% of the liabilities were borrowed by the controlling shareholders, with a balance of 12.11 billion yuan at the end of the period. The projects have basically achieved rolling development, the pre-sale funds will continue to be quickly returned, and the risk can be controlled. The three-year interest rate of 1 billion yuan of two-issue corporate bonds is 5.24%, and the three-year interest rate of 1 billion yuan is 4.98%. The weighted average annualized financing cost interest rate of 8.63% in the first half of the year is slightly lower than the 9.35% of 15 years.
The fundamentals of the company have gradually improved, and renaming "Beijing Investment Development" has become the only capital operation platform for A shares of the major shareholder Beijing Investment Group. Its importance and development space are worth looking forward to. With Beijing as the center and rail transit as the basis, the positioning of the development strategy is clear, the existing projects can maintain high performance release, and there is much room for rail property expansion in the future. In the later stage, with the strategic development pattern of "one body and two wings" of the group, that is, with the investment and financing business of rail transit and other government projects under construction as the main body, and the resource development and equity investment as the "two wings", the group is expected to continue to increase its support to listed companies. The company's investment value and long-term development have been recognized by risk. Under the favorable conditions, it is still possible to continue to attract stable strategic investors, which is worth paying attention to. Forecast company 16-18eps0.35, 0.48,0.61 yuan, RNAV12 yuan per share, given a target price of 12 yuan from June to December, maintaining the "highly recommended" rating.
Risk hints: major shareholders' support for listed companies is not as expected; high debt and high financing costs.
