Zhongnan Construction (000961): High performance and equity incentives highlight business confidence

Zhongnan Construction (000961): High performance and equity incentives highlight business confidence

Event description The company released the 2019 semi-annual report, and achieved operating income of 233 in the first half of 2019.

200 million, an increase of 52% in ten years.

Net profit attributable to mother 13.

1 ‰, 42% increase in ten years, EPS (basic) 0.

35 yuan, an annual increase of 42%.

Incidents commented on the high growth of income and profits, and the excess of advance receipts will effectively guarantee the subsequent performance.

In the first half of 2019, the company achieved operating income of 233.

200 million, an increase of 52% in ten years.

Net profit attributable to mother 13.

100 million, an increase of 42% in ten years.

In terms of profitability, the company’s gross profit margin in the first half of 2019 was 19 due to differences in settlement structure.

91%, falling by 2 every year.

31pct, it is expected that more resources will be settled in the second half of the year.
.

56%).

In the first half of 2019, the company’s net interest rate was 5.

63%, a decline of 0 every year.

43pct, but still higher than 5 of the 2018 entry.

47%.

As of the end of June 2019, the company received advance accounts 1283.

300 million, an increase of 182 over the end of 2018.

10,000 yuan will effectively guarantee the later revenue and performance growth.

Positive sales, prudent land acquisition and abundant soil reserves.

The company achieved sales of 644 in the first half of 2019.

60,000 square meters, with sales of 811.

80,000 yuan, an average increase of 24% in ten years, the average sales price of 12,594 yuan / square meter, flat for many years.

According to the city classification, the company’s sales area in the first and second-tier cities accounted for 41%, and the sales amount accounted for 46%.

In terms of land acquisition, the company added 27 additional projects in the first half of 2019, reducing 53 each year, with a total land acquisition area of 420.

10,000 square meters, a year-on-year decline of about 63%, taking the total price of 269.

100 million US dollars, a year-on-year decline of about 45%, the average land price is about 6,406 yuan / square meter, an annual increase of 48%, mainly because in the first half of the year in Jinan, Hangzhou, Xiamen, Xi’an and other second-tier cities core locations increased resources.

In the first half of 2019, the company took caution.
In the first half of 2019, the total land price / sales amount ratio was 33%, compared with 76% in the same period last year, indicating that the company is cautious in obtaining land in the first half of 2019.

As of the end of June 2019, the company had a total of 325 projects in reserve, of which 32.14 million square meters were planned for development projects under construction and 13.09 million square meters were planned for projects not started.

Of the 45.23 million square meters of project resources that can be completed in the future, the area of first and second-tier cities accounts for about 39%, and the area of third- and fourth-tier cities accounts for about 61%.

The net interest rate improved and the financial structure was sound.

The company’s net debt ratio in 2019 was 185.

6%, a decline of 7 per year.

3pct, short cash debt ratio from 1 at the end of 2018.
13 increased to 1.

49. Risk protection capabilities have been further improved.
Investment advice: High performance and sales growth, equity incentives show confidence.

The company adheres to the high turnover model, and the sales and performance growth rate maintains a high level quickly. The company has ample soil reserves to meet the development needs of about 3 years, and deeply cultivates the Yangtze River Delta region, which helps to fully benefit from the national strategy of the Yangtze River Delta integration.In the new round of equity incentive plan, the exercise conditions are that the net profit attributable to the mother in 2019-2021 is approximately 39.

8/69.

9/90.

9 trillion, high incentive plan shows confidence in leading growth.

It is estimated that the EPS for 2019-2021 will be approximately 杭州桑拿网 1.

09, 1.

89, 2.

67 yuan, 85% growth rate, 73%, 41%, corresponding to PE of 6.

82, 3.

93, 2.

78 times, maintain “Buy” rating.

Risk Warning: 1.

There are certain uncertainties in industry normative policies and project settlement progress, or they may affect the sales performance of listed companies; 2.

Macroeconomic and liquidity fluctuations may have an impact on the company’s operations.