I. Overview of events
The company announced its semi-annual report in 2013 that its operating income was 458 million yuan, up 16.82% from the same period last year. The net profit attributed to the parent company was 57.43 million yuan, up 19.98% from the same period last year, and basic earnings per share was 0.08 yuan. As expected.
II. Analysis and judgment
The results in the first half of the year were in line with expectations, and the different settlement project structure led to a decline in gross profit margin.
The company's performance growth rate became positive in the first half of the year, and the settlement income mainly came from Tianxiang Huating in Shangyu area and Wuzhou Century City in Qingyuan. Tianxiang Huating is selling semifinished houses, which has a lower gross profit margin than before, resulting in a decline in the company's comprehensive gross profit margin in the first half of last year to 35.06% from 39.70% in the first half of last year.
Sales rebate of 511 million yuan, an increase of 65.37% over the same period last year
In the first half of the year, the company returned 511 million yuan in sales, a sharp increase of 65.37% over the same period last year. The increase in available resources this year is the main factor in the increase in sales. Items available for sale this year include Tianxiang Huating, Wuhan Lijing Bay, Wuhan Moshui Lake, Qingyuan Wuzhou Century City, and so on. Among them, the Wuhan Moshui Lake project will be launched in the third quarter, and the available resources will be richer in the second half of the year. Sales will continue to grow at a high speed throughout the year.
The asset-liability ratio is not high, and short-term funds are relatively tight.
The asset-liability ratio is 55.12%, up 1.06 percentage points from the end of the year, but it is still in the middle level of the industry, the debt ratio is not high, but short-term liquidity is tight. Monetary funds declined further. By the end of June, the company's monetary funds were only 421 million yuan, while the non-current liabilities due within one year were 632 million yuan. Monetary funds could no longer cover short-term interest-bearing liabilities. But given that sales will double in the second half of the year, sales rebates will supplement short-term liquidity to some extent.
No new land was recorded in the first half of 2013, and we look forward to the action on the land reserve after the increase in sales rebate.
The company has not added any new projects since 2012. Equity construction was increased through the acquisition of minority interests in 2012, but no land was recorded in the first half of 2013. with the settlement of the project, the land reserve dropped to 2.44 million square meters from 251 million square meters at the end of 2012. The reduction of land reserve is not conducive to the sustainable development of the company in the future. We look forward to the action of the company in increasing the land reserve after the increase of sales rebate in the second half of the year.
Third, profit forecast and investment suggestions
The increase in sales rebate will boost the company's revenue in the next few years, which is expected to reach 1.3 billion yuan in 2012 according to the company's mid-2012 forecast. We maintain our original judgment and estimate that the company's EPS from 2013 to 2015 will be 0.22,0.35 and 0.69 yuan respectively. The corresponding PE is 13x and 8x respectively. NAV is valued at 5.12 yuan and currently shares at 2.87 yuan, a discount of 44%. Give a "highly recommended" rating.
Fourth, risk tips:
Regulatory policies increased; sales were lower than expected; and the company's access to new projects was blocked.