Rongsheng Development (002146): The energy level of the land has been significantly improved, and the index of high and steady growth has been benchmarked

Rongsheng Development (002146): The energy level of the land has been significantly improved, and the index of high and steady growth has been benchmarked
Summary of key investment results: The company released its semi-annual report for 2019 and realized operating income of 243 in the reporting period.60,000 yuan, an annual increase of 25.7%; net profit attributable to shareholders of the parent company.40,000 yuan, an increase of 31 in ten years.1%.  The growth rate of performance was in line with expectations, and the gross profit margin slightly increased from a high level.In the first half of the year, the company’s revenue performance increased steadily. The increase in net profit attributable to mothers was mainly due to the decrease in the profit and loss of minority shareholders.In the first half of the year, the company’s gross profit margin was 30.4%, slightly lower than that, mainly due to the slight increase in project settlement costs in the first half of the year. In the first half of 2019, the company’s average settlement price was about 10803 yuan / square meter (+ 39%), and the corresponding unilateral settlement cost was about 7501 yuan / square meter.(+ 43%), and the company’s average sales price has been rising slowly since 2017, while the cost of land acquisition is controllable, and the future settlement gross margin is supported.At the same time, other income related to corporate government subsidies in the first half of 2019 decreased (this period was 0.3.8 billion, compared with 3 in the same period last year.02 ppm), thereby reducing net sales purity by 2.4 up to 11.8%.  The “two horizontal, two vertical and three maximization” layout took the land beyond expectations in the first half of the year.The company has steadily expanded the Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta urban agglomerations.In the first half of 2019, the company obtained 63 plots of land in 26 cities, adding 654 planning and capacity building areas.2 Universal (equivalent to 86 of the general-purpose land area of the 2018 company.0%), an annual increase of 62.4%.  In the first half of the year, the company took land plots to build 589 in April-June.7 In general, the corresponding average land floor price is 3997 yuan / square meter, which is mainly distributed in Suzhou, Hangzhou, Hefei, Foshan, Shaoxing, Nantong and other places. The land energy level has been significantly improved, and the company’s future average sales price can be expected to rise.As of the end of the 武汉夜生活网 first half of 2019, the company’s total land reserve was 4,060, which could meet the company’s development needs for about three years, and gradually achieved the last doubling of the estimated land size. The soil storage structure continued to be optimized.  The net interest rate has fallen and is at a reasonable level.In the case of strengthening the land, the company has interest to deny that the total scale has increased. At the end of the first half of the year, the company has interest to resist the total scale of 677.600 million, an increase of 13% in ten years.As a result, the company’s net debt ratio was 101 at the end of the first half of 2019.5%, an increase of 14 units around the end of 2018, but it is still down 28 each year.2 units.  Sales increased steadily in the first half of the year, and the launch of the second half is worth looking forward to.In the first half of the year, the company achieved such 465.80,000 yuan, an increase of 16 in ten years.2%, the average selling price in the first half of the year was 11019 yuan / square meter, an increase of 6 over the end of last year.7%.In 2019, the company’s target sales amount is 1120 million, and the corresponding sales growth rate is 10.3%, as of the end of July, the target of 47 has been achieved.6%.In the first half of the year, from the perspective of sales structure, rigid inventory was more than 60%, which performed well. The second half of the year, especially in the fourth quarter, is worth looking forward to.  Profit forecast and rating.The EPS for 2019-2021 is expected to be 2 respectively.17 yuan, 2.63 yuan, 3.18 yuan, the company’s current dividends total 5.44%, giving 5 times PE in 2019, corresponding to a target price of 10.87 yuan, maintain “Buy” rating.  Risk Warning: Tighten policies, tighten sales, expect growth in sales, and withdraw or withdraw funds.

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