Greenland Holdings (600606): Steady sales return improves performance beyond expectations

Greenland Holdings (600606): Steady sales return improves performance beyond expectations
Event: Greenland Holdings released the semi-annual report for 2019: the company achieved operating income in the first half of 2019.4.6 billion, an annual increase of 27.59%; net profit attributable to mother 89.870,000 yuan, an annual increase of 48.40%; basic profit income is 0.74 yuan / share. Opinion performance exceeded market expectations, and profitability further improved.The company achieved operating income in the first half of 2019.460,000 yuan, an increase of 27 in ten years.59%; net profit attributable to mother 89.870,000 yuan, an annual increase of 48.At 40%, the company maintained the development momentum of “steady and fast forward”; the average return on net assets was expanded by 12.04%, an increase of 2 a year.81 units.The company achieved a settlement gross margin of 15 in the first half of the year.2%, a year to raise 0.2 units; of which the gross profit margin of the real estate business is 27.97%, increase by 1 every year.86 averages, continued to improve; net profit margin 5.6%, increasing by 0 every year.4 units.The company received 3597 accounts in advance.80 ppm, an increase of 21 in ten years.78%, future performance growth can be expected. Sales increased slightly and investment remained stable.From January to June 2019, the company realized sales area of 1487.10,000 square meters, an increase of 10 in ten years.2%; sales amount is 1676.85 ppm, a 10-year increase3.1%; 37% of the expected 4500 trillion sales target has been achieved.The company focused on the first-tier city overflow areas, second-tier provincial capital cities, and prefecture-level high-speed rail stations. In the first half of the year, 58 new projects were acquired, and the project ‘s equity area increased by 19.68 million square meters, a 9% reduction; the land value of equity was 45.9 billionWith a year-on-year growth of 9%, the average land price is only 2332 yuan / square meter, and the average land price only accounts for 26% of the average sales price, which effectively guarantees future gross profit.In the first half of the year, the company’s repayment amount was US $ 131.9 billion, with a repayment rate of 79%, an increase of 2 units compared with the end of 2018. Strictly control leverage and scale of financing channels.In the first half of the year, the company started from accelerating project turnover and carry-over, strengthening the collection of receivables, controlling the scale of interest-bearing debt, and other aspects, focusing on reducing the asset-liability ratio.As of the end of June 19, the company’s assets and liabilities were 88 again.30%, debt restructuring after excluding advances 52.4%, each year decreased by 0.68 digits and 3.91 units.One of the company’s financing channels was successfully issued13.500 million US dollars of debt, actively promote ABS financing, and expand the scale of credit. Investment suggestion: As a leading real estate industry, Greenland Holdings has continued to strengthen its layout in core first-tier and second-tier cities in the past two years.The company gradually formed its own characteristics and advantages, and actively acquired land reserves through such methods as characteristic towns, high-speed railway station business areas, and super high-rise projects.At the same time, the company’s continued layout in large infrastructure, big finance and big consumption has formed a strong complement to the real estate business.We expect profit forecasts for 2019-2021 to be 1.12.1.35, 1.60 yuan, corresponding estimates are 5.深圳桑拿网97, 4.97, 4.21x, maintain “Buy” rating. Risk warning: industry sales fluctuations; policy adjustments leading to operational risks (shed reform, restructuring, interest rate policies, etc.); changes in the financing environment (mortgages, development loans, interest rate adjustments, etc.).