China Merchants Shekou (001979): Unbalanced settlement distribution drags down performance Significant sales growth in the current period

China Merchants Shekou (001979): Unbalanced settlement distribution drags down performance Significant sales growth in the current period

China Merchants Shekou released the third quarter report of 2019, and the company achieved operating 厦门夜网 income of 255 in the first three quarters of 2019.

43 trillion, down 24 a year.

39%; net profit attributable to mother 50.

93 trillion, down 38 a year.

46%; basic return is 0.

60 dollars.

The uneven distribution of opinion settlements weighed on performance.

The company achieved operating income of 255 in the first three quarters of 2019.

4.3 billion, down 24 every year.

39%; net profit attributable to mother 50.

93 trillion, down 38 a year.

46%; from the single quarter data, 19Q3 operating income was 88.

5.6 billion, down 30 a year.

77%; net profit attributable to mother 1.

9.5 billion, a year-on-year decrease of 83.

21%; due to the uneven distribution of completions and carryovers, the current carry-over area shrinks, resulting in continuous revenue. The company’s project completion and carryover time is mainly concentrated in the fourth quarter.Maintain positive growth.

Due to the mismatch between sales and carry-over, the period rate increased significantly, and the rate during the first three quarters reached 14.

8%, an annual increase of 5.

3 units, an increase of 8 over the end of 18 years.

5 units; sales rate, management rate and financial rate increased by 2.

1.

3, 2.

4 units.

The final company’s net sales margin was 22.

8%, a decline of 6 per year.

0 averages.

As of the end of the third quarter of 2019, the company’s advance receipts reached 1347.

32 ppm, an annual increase of 35%, and future performance is expected.

Sales growth is eye-catching, and investment tends to be cautious.

On January 9, 2019, the real estate business realized a sales amount of 1620.

40,000 yuan, an increase of 39 in ten years.

38%; sales area 833.

0 million square meters, an increase of 49 in ten years.

71%.

The company’s investment scale is loose. In terms of resource reserves, the company added 8.52 million square meters of new soil storage construction surface from January to September, which has decreased by 18% year-on-year.The floor price is 6,977 yuan / square meter, accounting for 36% of the average sales price.

Leverage is controllable and financing costs remain low.

As of the end of the third quarter of 2019, the company’s asset-liability ratio was 75.

6%, down by 1 every year.6 units; net debt ratio 62.

4%, an annual decrease of 11.

9 averages.

In the first half of the year, the company issued 35 trillion yuan of the first phase of 2019 corporate bonds, of which 23 trillion varieties and 12 trillion varieties, with coupon rates of 4 respectively.

21% and 3.

75%; two periods of ultra short-term financing bonds, a total of 50 trillion, with a coupon rate of 2 respectively.

98% and 2.

80%; 15 trillion corporate bonds will be issued again in July, with a coupon rate of only 4.
.

13%, the company’s financing costs are always low in the industry.

Investment suggestion: As the flagship company of the China Merchants Group’s real estate sector, China Merchants Shekou is positioned as a leading city and park comprehensive development and operation service provider, and is an important core asset integration and business collaboration 杭州桑拿网 platform for the group.

The company has abundant reserves in the Guangdong-Hong Kong-Macao Greater Bay Area and will fully benefit from the development bonus of the Bay Area in the future.

The company’s EPS for 2019-2021 is expected to be 2.

39, 2.

87, 3.

44 yuan, corresponding to PE is 8.

11, 6.

74, 5.

63 times, maintain “Buy” rating.

Risk warning: industry sales fluctuations; policy adjustments leading to operational risks; changes in financing environment; corporate operating risks; exchange rate fluctuation risks; shed reform monetization is not up to expectations.