Event: the company achieved operating income of 443 million yuan in the first three quarters, an increase of 7.86% over the same period last year; net profit belonging to shareholders of listed companies was 303 million yuan, up 190.29%; and earnings per share was 0.40 yuan, up 188.89% over the same period last year.
Focusing on some projects of strategic disposal of light assets, the performance has been greatly improved.
The company's main business is real estate development and sales, investment real estate rental and asset management export services. In view of the excessive supply of commercial projects in recent years and the impact of e-commerce on traditional commercial projects, the company's future business will mainly focus on the acquisition, transformation, promotion and withdrawal of non-performing and inefficient assets in Beijing, Tianjin and Shanghai. According to the new development strategy, the company has vigorously implemented the strategy of light assets over the past 17 years, disposing of some real estate projects and properties, and the sale of shares in some subsidiaries in the third quarter led to an increase in investment income. The performance has been greatly improved.
Transfer and withdraw some shareholding projects to improve management efficiency, focusing on the development of commercial property management business
The company enters the city more, the management property is more scattered, while transferring part of the shareholding project to the third party, it also withdraws from some shareholding project management, the personnel aspect is reduced, the management efficiency is improved, and the management cost is significantly reduced. In the first half of 17 years, the company earned 221 million yuan in real estate development business and 117 million yuan in investment real estate leasing income. The rental rate of commercial projects such as Sunshine Shangdong in Beijing, Beiyuan Huatang and A-Ztown in Chengdu reached 100%. It has a certain commercial property management ability. The timely transfer of residential development projects and withdrawal from poorly managed projects will help the company to focus on key business and improve its management ability.
It is proposed to acquire 100% stake in Jingjibena Business Management to further improve the company's asset management level.
The company announced that it intends to acquire 100% stake in Jingjibena Business Management. Shenzhen Jingjibena Business Management was founded in 2006, is a wholly-owned subsidiary of Jingji Group, the operation and management projects are mainly concentrated in Shenzhen, including: Jingji 100City complex, Nanshan Jingjibena Plaza, KK MALL, Sagai Jing Kebai Plaza, KK ONE, Jingji Causeway Bay Digital Communication Plaza, Jingji Yujing Huacheng Commercial Plaza, etc., with a total operation and management commercial area of more than 600,000 square meters. If the reorganization is successful, the business management area of the company will be significantly expanded, and the management ability will be significantly improved.
Investment suggestion
The company has formulated a new development direction and light assets business model, and formed a new organizational structure with the investment, transformation, operation and withdrawal of assets as the main line, and is reshaping the asset management capability at the top of the industrial chain of the real estate industry. The worst year for the company has passed. We estimate that the company's EPS in 2017-2019 will be 0.44,0.41,0.46 yuan respectively, corresponding to 18X, 20x and 17x, with a "buy" rating for the first time and a target price of 10.16 yuan within 6 months.
Risk hint: the progress of asset restructuring is not as expected.