China Merchants Shekou (001979): The carry-forward rhythm affects the performance of the current period and the asset value continues to grow

China Merchants Shekou (001979): The carry-forward rhythm affects the performance of the current period and the asset value continues to grow

Event description In the first half of 2019, the company achieved operating income of 166.

870,000 yuan, a decrease of 20 per year.

49%; net profit attributable to mother 48.

98 ppm, a reduction of 31 per year.

17%.

Incident review Changes in the carry-over area and carry-over unit price affect the current performance, and the growth in advance income growth supports future development.

In the first half of 2019, the company achieved revenue of 166.

870,000 yuan, a decrease of 20 per year.

49%; net profit attributable to mother 48.

98 ppm, 佛山桑拿网 a reduction of 31 per year.

17%, revenue and performance exceeded mainly due to the current carry-over area and carry-over unit price multiple reductions.

As of the first half of 2019, the company (prepayments + contract debts) totaled 1,111.

3.0 billion, compared with 753 at the end of 2018.

The growth of US $ 4.9 billion is obvious, which can support the continued growth of future performance to a certain extent.

The company’s completion plan for 2019 is 10 million square meters (the plan for 2018 is 5.93 million square meters). Most of the completion and carry-over are concentrated in the second half of the year, which results in performance or will maintain growth.

Sales continued to grow, focusing on core cities.

In terms of sales, the company signed about 1011 contracts in the first half of the year.

92杭州桑拿0,000 yuan, an increase of 34 in ten years.

75%; realized sales area of 515.

230,000 square meters, an increase of 43 in ten years.

77%, sales achieved steady growth.

In terms of land acquisition, in the first half of the year, the company added 29 additional projects through bidding, auction and bidding, and added 383 capacity-building areas.

310,000 square meters, a decrease of 49% compared to the same period in 2018, and the overall land acquisition intensity has significantly decreased.

At the same time, the company focused on the core cities, and the investment in first- and second-tier cities accounted for nearly 90%.

The company is expected to fully benefit from the construction of a pilot demonstration zone in Shenzhen.

On August 18, the “Opinions on Supporting Shenzhen to Build a Socialist Pioneering Demonstration Zone with Chinese Characteristics” put forward the strategic positioning of Shenzhen as a “Pioneering Socialist Demonstration Zone with Chinese Characteristics”. The economic development and population absorptive capacity were promoted significantly.

The company has high-quality soil storage in Shenzhen, mainly located in the Qianhai Shekou Free Trade Zone, and has a higher revaluation.

With the improvement of Shenzhen’s strategic leadership, the company’s asset value may continue to grow and it is expected to fully benefit.

Investment suggestion: Sales continue to grow and asset value is expected to increase significantly. Maintain a “Buy” rating.

The company has the advantage of the “front harbour-central area-back city” model. The park has a rich real estate reserve and the community real estate operation speeds up.

With the construction of a pilot demonstration zone in Shenzhen, the company’s land reserves in Shenzhen are rich and it is trying to fully benefit from the policy dividend.

The EPS for 2019-2021 is expected to be 2 respectively.

40, 2.

97, 3.

52 yuan, corresponding to the current PE value of 8.

5, 6.

9, 5.

8 times, maintain “buy” risk warning: 1. Uncertainty in the liquidity environment; 2.

There may be uncertainties in the adjustment policies of the real estate business.