1-3Q earned 0.49 yuan per share, an increase of 15.7% over the same period last year, in line with expectations.
Pudong Jinqiao announced 1-3Q17 results: operating income 1.143 billion, an increase of 4.1% over the same period last year; net profit belonging to the parent company was 547 million, an increase of 15.7% over the same period last year, corresponding to a profit of 0.49 yuan per share.
The main business operation is rising steadily. The company's main business revenue in the first three quarters totaled 1.143 billion, including rental revenue of 911 million, an increase of 7.22% over the same period last year, and hotel apartment revenue of 1.12 billion, an increase of 6.71% over the same period last year.
The profit margin increased slightly. In the current period, the company's comprehensive gross profit margin was 62.6%, an increase of 2.6 percentage points, and the net profit margin was 47.8%, an increase of 4.8 percentage points.
The return on investment has increased significantly. The investment income during the period was 108 million yuan, an increase of 61.8% over the same period last year.
Mainly due to the reduction of 4.9 million shares of Oriental Securities during the reporting period, resulting in a cash income of 79.62 million yuan.
The net debt ratio is low. The company's net debt ratio fell 4.1 percentage points year-on-year to 34.0% in the current period, which is at a low level in the industry. The company has 1.12 billion yuan in cash at the end of the period, a decrease of 10% over the same period last year, and less than one-year liabilities, so there is a risk of default in the short term.
Trend of development
The speed of the financial technology platform project has been accelerated. Complete the decoration and delivery of some properties of the financial technology platform project, optimize the internal functions and related industrial services, and establish project reserves to achieve investment breakthroughs in financial technology and other emerging industries before the end of the year. Focus on promoting the preparatory work of some business center projects.
Good sales will support future performance. As of September 30, 2017, the first batch of 146units of Biyun 10 project have been sold out, and 785.53 million yuan has been received.
Profit forecast
We keep our earnings per share forecast for 2017 / 2018 unchanged.
Valuation and suggestion
At present, the company's share price corresponds to 21.1 times 2017 18e price-to-earnings ratio of 24.9 pound. We maintain a neutral rating and a target price of 19.00 yuan, which is 5.2% higher than the current share price.
Risk
Macroeconomic downside risks.