The company announced 2016 semi-annual report, achieving operating income of 844 million yuan (- 15.75%), net profit of 40 million yuan (- 41.97%), deducting non-net profit of 34 million yuan + 19.4%, basic EPS0.09 yuan (- 50%), ROE2.24%.
Investment points: real estate projects can be carried forward to reduce and the decline in investment income affects the performance. The 16H revenue is 844 million yuan (- 15.75%), the net profit is 40 million yuan (- 41.97%), and the non-net profit is 34 million yuan + 19.4%. Main business: project contracting revenue of 579 million yuan compared with the same period last year + 13.29%, gross profit margin of 26.51% increased by 1.16%; real estate development business revenue of 240 million yuan-46.52%, gross profit margin decreased by 21.55%, mainly due to the current period of processing and digesting the stock of some real estate projects. The sale of 700000 Huiquan Beer shares and the asset management plan to hold 332400 Huiquan Beer shares, with a total investment income of about 8 million yuan, compared with a reduction of 2.2779 million Huiquan Beer shares in the same period last year, resulting in an investment income of about 43 million yuan. The advance collection of 1.985 billion yuan increased by 127% over the beginning of the year, forming a certain lock on the annual performance. Generally speaking, whether the value of the real estate project can be released as scheduled is directly related to the performance of the company, and there is insufficient carry-over area in the first half of the year. In the second half of the year, the company will pay close attention to the overall sale of the "Victoria Harbour Park" project for the reconstruction of the old building at 3-7 Yongxing Street, Wuyi, Hong Kong, speed up the construction of the Nanjing Wuyi Mingshi Garden project, and strive for some buildings to meet the carry-over conditions. In addition, it also holds 11.45 million Huiquan Beer shares at the end of the period, with a current market capitalization of about 154 million yuan, which can reduce holdings and increase profits.
The rights issue significantly improved the debt ratio but short-term solvency remained under pressure. 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 funds on hand were 2.092 billion yuan, the short-term debt gap was 1.47 billion yuan, the asset-equity-debt ratio was 80.4%, and the net debt ratio was 147%, which was 102 and 178 percentage points lower than that of the same period last year and the end of last year, respectively.
The proportion of three fees decreased by 1.5 percentage points, of which the financial expenses decreased by 41.39% due to the exchange earnings, and the sales expenses increased by 31.28% due to the increase in advertising and the salary of sales staff.
The most flashpoint of the performance is the Tongzhou project. In the first half of the year, real estate sales income of 1.053 billion yuan, sales area of 121300 square meters, of which: Nanjing Wuyi Mingshi Garden sales of 550 million yuan, launched about 40,000 square commercial housing sold out.
In addition, there are Fujian, Chongqing, Yangzhou and other cities, Hong Kong and Kenya and other places, the existing project planning area of more than 3 million square meters, uncompleted area of nearly 2 million square meters. The most interesting point is the Tongzhou project, the location and scale are very rare. Living in the core area of Tongzhou New City, close to the Beijing Administrative Deputy Center, at present, four parks, namely, Narcissus Garden, Peony Garden, Bauhinia Garden and Rose Garden, have been developed and completed, totaling about 600000 square meters. Indemnificatory apartment has entered the construction stage of the upper main project, and the demolition of the commercial housing project is under way. The total floor area of the project is 381,000 square meters, and the construction ground is 285,000 square meters, with a total construction area of 109 million square meters, including 727 million square meters above ground, including 516 million square meters of residential buildings (including commercial housing 451 million square meters and indemnificatory apartment 6.5 million square meters), commercial 710,000 square meters, commercial office space 80,000 square meters, The Business Inn 16,000 square meters and others. The price of nearby new housing projects has reached 40, 000 yuan / square meter, the company's project is expected to enjoy a certain location advantage premium, the price of 50-60, 000 yuan / square, its entry into the market and settlement will bring considerable profit growth.
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, forecast for 16-18 years EPS 0.29 pound 0.38pm 0.52 yuan, maintain the "recommended" rating.
Risk hint: Tongzhou project schedule is not as expected, international business geopolitical risk, exchange loss risk.