Sunshine City (000671): Outstanding performance, optimized debt structure, continuous improvement in cash flow
The main points of the report describe the company’s release of the 北京夜网 2019 semi-annual report.110,000 yuan, an increase of 48 in ten years.03%, achieving net profit attributable to mother 14.49 ppm, an increase of 40 in ten years.52%.The best average ROE is 6.92%, an annual increase of 1.72 points. Incident Review Revenue and performance have grown rapidly, and profitability has steadily improved.The company achieved revenue of 225 in the first half of 2019.110,000 yuan, an increase of 48 in ten years.03%, net profit attributable to mother 14.49 ppm, an increase of 40 in ten years.52%, the company’s revenue and profit scale grew rapidly.In terms of profitability, the gross profit margin of the company’s real estate projects in the first half of 2019 increased by 1 from the end of 2018.28 points to 26.93%, net profit attributable to mothers increased by 1 compared with the end of 2018.1pct to 北京夜网 6.44%, with an expected average ROE of 6.92%, an annual increase of 1.72pct, the overall profitability of the company has steadily improved. The debt scale was properly controlled, the debt structure continued to be optimized, and cash flow was outstanding.As of the end of June 2019, the company had short-term interest-bearing debt of 341.61 trillion, the proportion of interest-bearing debt fell 12 compared with the end of 2018.34 points to 30.47%, non-bank financing accounted for a decrease of 21 compared to the end of 2018.57pct to 31.00%, denying continuous optimization of the structure.Asset-liability ratio 83.58%, a decrease of 0 from the end of last year.85pct, 38% interest-bearing assets.84%, a decrease of nearly 4 pct compared with the end of last year, and a net debt ratio of 145.13%, a decrease of 37 from the end of last year.09 points.In terms of cash flow, the average return rate in the first half of 2019 was about 80.50% of the book currency funds at the end of the period 433.8,000 yuan, accounting for 15% of the total assets, to achieve full coverage of 341.US $ 6.1 billion of short-term interest-bearing debt, the company’s cash flow situation continued to improve. High sales growth, stable land acquisition, and continued layout of first- and second-tier core city circles.In the first half of 2019, the company’s contracted sales amount was 900.73 ppm, an increase of 28 in ten years.66%, contract sales area of 702.130,000 square meters, an increase of 53 in ten years.72%, with an average sales price of about 12,829 yuan / square meter (12,860 yuan / square meter in the same period in 2018).In terms of land acquisition, the company seized market potential to focus on land acquisition in first- and second-tier core cities and metropolitan areas, and obtained project cities including Beijing, Xiamen, Nanjing, Fuzhou, and Suzhou. The land reserve structure continued to be optimized.In the first half of 2019, the company added 526 land capacity.710,000 square meters, down 4 each year.56%, the overall land take rhythm is more stable.As of the end of the reporting period, the company’s accumulated land reserves totaled 4,396.350,000 square meters (estimated value of 5466.USD 7.8 billion, of which the tier-1 and tier-2 cities are expected to account for 85% of the future saleable value.93% (land reserve area accounts for 76.20%). Investment suggestion: Deep cultivating core cities in the first and second tiers, with high sales growth, there is still room for growth.The company’s sales increased, the debt structure was optimized, the repayment was efficient, and monetary funds improved.The property markets in core cities along the first and second tiers are picking up, and the company is deeply cultivating core urban circles, which may continue to benefit in the future.We expect the company’s EPS to be 1 in 2019-2021.10/1.63/2.21 yuan, corresponding to the current sustainable PE is 5.94/4.02/2.96. 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.