Performance summary: in the third quarter of 2013, the company achieved operating income of 1.608 billion yuan, an increase of 23.29% over the same period last year; operating profit of 266 million yuan, an increase of 8.06% over the same period last year; net profit of 201 million yuan belonging to the owner of the parent company, an increase of 8.41% over the same period last year; and basic earnings per share of 0.2321 yuan.
Based on Xi'an, multi-regional layout of medium-sized developers. The company is a leading real estate enterprise in northwest China and a real estate listing platform under Xi'an High-tech Zone. At present, the company has formed the national strategic layout of the western region with Xi'an as the center, the Yangtze River Delta region with Suzhou as the center, the Pearl River Delta region with Shenzhen as the center and the Bohai Rim region with Tianjin as the center, and the expansion path is clear.
The comprehensive gross profit margin declined, and the expense rate decreased during the period. During the reporting period, the company's comprehensive gross profit margin was 32.09%, down 7.6 percentage points from the same period last year; and the expense rate during the company period was 7.23%, down 0.64 percentage points from the same period last year. Among them, the sales expense rate was 4.08%, an increase of 0.54% over the same period last year, mainly due to the increase in sales in the current period, the corresponding increase in advertising fees and planning fees; the management expense rate was 3.17%, down 0.73% from the same period last year; and the financial expense rate was-0.02%, down 0.45% from the same period last year, mainly due to less expense interest in the current period.
Long-term financial pressure increases, short-term worry-free. The company's final asset-liability ratio is 78.68%. Excluding accounts received in advance, the real asset-liability ratio is 59.49%, an increase of 16.88 percentage points over the same period last year. At the end of the period, the book currency fund was 905 million yuan, an increase of 41.4% over the same period last year. "currency funds / (short-term loans + non-current liabilities due within one year)" was 0.88 times, an increase of 0.24 over the same period last year. The company's short-term capital pressure decreased slightly compared with the same period last year.
The ways of acquiring land are gradually diversified. In August, the company cooperated with Zhongchang Zhuoyong to carry out a land reserve in Dongli District, Tianjin, with an area of about 261800 square meters and a planned construction area of about 559000 square meters. Prior to this, the company also acquired the land use right of the Zhangba Road Project in Xi'an Yanta District by acquiring the equity of Oriental Jiade Construction, with a total area of about 374mu and a transaction amount of 3.927 billion yuan. The company actively promotes the reserve of land projects, which lays a foundation for sustainable management in the future.
Profit forecast and investment rating. We expect the company's earnings per share from 2013 to 2015 to be 0.31 yuan, 0.35 yuan and 0.39 yuan respectively. According to the closing price on October 25, 2013, the corresponding price-to-earnings ratio is 12 times, 10 times and 9 times respectively, maintaining the "overweight" investment rating.
Risk hint. The risk that real estate regulation lasts longer than expected; the risk that demand in second-and third-tier cities is lower than expected.