Zhongnan Construction (000961): Steady growth in sales performance and profit margin expected to continue to improve

Zhongnan Construction (000961): Steady growth in sales performance and profit margin expected to continue to improve

The performance improved steadily, and the profit margin continued to improve. The company achieved operating income of 233 in the first half of the year.

20,000 yuan, an increase of 52 in ten years.

3%, net profit attributable to mother 13.

1.2 billion, an increase of 41 in ten years.

6%, long-term performance commitment 39.

800 million, the current completion rate is 33%.

In the first half of the year, the company’s overall gross profit margin was 19.

9%, falling by 2 every year.

3pct, the current profit level of the company’s existing unsold projects is not lower than the settlement performance of last year, and the company’s overall profit margin is expected to continue to improve in the future.

Sales receipts remained stable, and the proportion of land acquisition rights increased. In the first half of 19, the company achieved sales of US $ 81.2 billion, an annual increase of 24%, all contributed by area. Except for the Bohai Rim region, other major regional markets have maximized their scale.

The reported company’s operating cash inflow / sales amount caliber repayment restructuring 70%, the repayment rate remained stable.

In terms of land investment, the area and amount of land acquisition of the company decreased in the first half of the year (-51%, -34%). As the company’s development focus shifted to second-tier cities, the cost of land acquisition increased.

In the first half of the year, the intensity of land acquisition (land acquisition / sales) declined slightly from the previous 18 years, but the equity ratio increased significantly.

The net debt ratio continued to decline. The doubling of the minority shareholders’ equity leverage ended on June 30, 19, and the company had an interest resistance of 685.

500 million yuan, an increase of 18 over the end of 18 years.

3%, net debt is priced at 185.

6%, an increase of 5 in the early 18 years without rising.

9 points.

As for the 深圳桑拿网 leverage multiplier, as of the end of June 19, the company’s leverage multiplier was 14.

3x, an increase of 0 from the end of 18 years.

73x, in which financial leverage and operating leverage were increased by 0.

32x and 0.

28x, the leverage on minority shareholders’ equity was raised by 0.

13 times.

The company’s EPS is expected to be 1 in 19 and 20 respectively.

13, 1.

94 yuan, maintaining the “buy” rating is expected to the company’s EPS in 19 and 20 respectively.

13, 1.

94 yuan, corresponding to PE is 6.

8x, 4.

0x.

Taking into account the rapid growth of the company’s performance and sales, we believe that Zhongnan Construction’s upward forecast elastic contraction, maintaining its previous rating and reasonable value, corresponding to a 19-year reasonable valuation9.

5X Dynamic PE.

Risks suggest that the industry’s fundamental prosperity is declining, and the city is entering a new trend of urbanization.