China Merchants Shekou (001979) Semi-annual Report Comment: Scheduled short-term short-term adjustments with high probability to achieve sales targets
Event: H1 company achieved operating income of 166 in 2019.
870,000 yuan, a decrease of 20 per year.
49%, net profit attributable to mother 48.
9.8 billion, a year-on-year decrease of 31.
17%, realized a net profit of 48.
3 ‰, a decrease of 21 per year.
Opinion: The decrease in revenue is mainly determined by the settlement, and the performance lock-in ratio has increased from the previous quarter, which provides room for subsequent settlement.
H1 company achieved operating income of 166 in 2019.
8.7 billion, a decrease of 20 per year.
49%, in terms of business, community development achieved revenue 124.
08 billion yuan, a decrease of 29 per year.
8%, gross profit margin decreased by 11 every year.
With 8 PCTs, the park’s development achieved revenue of 40.
08 million yuan, an increase of 31 every year.
3%, gross margin increased by 6 in the short term.
5 PCT, cruise business realized revenue 2.
7 ppm, gross margin decreased by 4.
Among them, the revenue from community development business and gross profit margin both declined, mainly due to the decrease in the company’s settlement projects and the change in types.
In 2019, H1 company realized advance payment 895.
800 million, the performance lock-in rate reached 101%, a significant increase from the 68% at the end of 2018, providing space for subsequent performance settlement.
The company realized net profit attributable to mother 48.
98 ‰, a decrease of 31 per year.
17%, 90% of the equity of the mother.
6%, an increase of 12 from the previous month.
Sales achieved rapid value-added growth, with an initial high probability of 200 billion yuan.
From January to June 19, the company’s cumulative sales area was 515.
230,000 square meters, an increase of 43 every year.
77%, the sales amount is 1011.
92 ppm, an increase of 34 per year.
75%, gradually selling average price 1.
960,000 / sqm, relatively stable.
According to the 2018 annual report, the company’s unsoiled soil storage is as high as 4217.
With 680,000 countries, the first and second line soil storage area accounts for 72% of the total. It is estimated that the company’s saleable value will be 350 billion in 2019. According to the company’s existing sales growth rate, the 19-year target of 200 billion will be gradually achieved.
Land acquisition was cautious in the first half of the year, and enthusiasm improved in July.
From January to June, the company gradually replenished 383.30,000 countries, a cumulative reduction of 49% a year, taking the average land price of 367.
5.9 billion, a decrease of 39% previously, and land acquisition was relatively conservative in the first half of the year.
From January to June, the cumulative average land acquisition price and land sales area ratios were 0.
36, all lower than the same period last year.
Since July, the company’s enthusiasm for land acquisition has improved. During the month, it added 1.53 million noodles to build the surface, which led to the gradual replenishment of soil reserves from January to July or the growth rate rose to -38%.
In terms 成都桑拿网 of land acquisition rights, from January to June, the company gradually increased its construction equity ratio to 42.
6%, a decrease of 17 PCT from the end of the previous year.
Operating cash flow continued to be positive and financing costs remained low.
The reporting company achieved a net operating cash flow of 60.
6.3 billion US dollars, continued positive net worth at the end of 18 years, net investment cash flow -94.
USD 6.5 billion was mainly due to the increase in advances paid to joint ventures, which echoed the decline in the proportion of companies taking land-based equity.
Report size The company used multiple financing channels to report and increase 8.5 billion corporate bonds, ultra short-term financing quotas, and approved 10 billion ABS for the final purchase of houses. The overall capital cost was controlled at 4.
91%, an increase of 0 in only ten years.
06PCT, keeping the industry low.
After the consolidation of the property sector, AVIC Sunda may achieve consolidation and strengthen the company’s property sector.
After AVIC Sunda restructures its investment properties, the company will directly and indirectly hold AVIC Sunda5.
4.3 billion shares (by then 51.
16%), becoming a subsidiary of AVIC Sunda Holdings, realizing an area under management of nearly 1.
At 500 million square meters, the company and AVIC Sunda Property Services support each other and coordinate with each other to promote the company’s comprehensive competitiveness.
The company has ample incentives for employees, and its share repurchases show confidence.
The company actively implements various forms of incentive mechanisms to improve the company’s operating management efficiency.
The Air Force Company released its first equity incentive plan in 2016, which provided equity incentives for executives. At the same time, the company launched an employee stock ownership plan to motivate employees and improve management efficiency.
In addition, the company began to implement project follow-up investment plans for directors, supervisors, and senior management in 2017 to achieve revenue sharing, risk sharing, and motivate the team.
In terms of repurchases, as of 2019, H1 companies will gradually repurchase1.
8.4 billion shares, accounting for total equity2.
33%, the payment amount does not exceed 400 million US dollars, and the implementation of the repurchase is completed.
Investment advice: The restricted pace and structure in the first half of the year have dragged down performance growth, but long-term optimism about the company’s resource value and subsequent growth.
The company is expected to have a saleable value of 350 billion yuan in 2019, and is expected to achieve a sales target of 200 billion yuan in 2019, and its performance will continue to grow rapidly.
The local surface has been relatively high for half a year, but the enthusiasm has significantly increased since 7 months. The company has a lot of land resources in the core area of the Guangdong-Hong Kong-Macao Greater Bay Area, which will benefit the medium and long-term as the construction of the Greater Bay Area progresses.
The integration of the property sector and BOC Sunda is progressing smoothly, and the business synergy effect will be significant in the future, which will help improve the company’s comprehensive competitiveness.
Based on this, we expect the company’s net profit for 2019-2020 to be approximately 195, respectively.
0 billion, 239.
300 million, corresponding to EPS of 2.
02 yuan, corresponding to PE is 8.
73X, maintain “Buy” rating.
Risk warning: policy changes are less than expected, and house sales have increased significantly.