Huayuan Real Estate (600743): The sales growth rate exceeded the expected sales, and land acquisition speeded up significantly

1H19 profit 0.

08 yuan, an annual increase of 216%, exceeding the expected 1H19 results announced by Huayuan Real Estate: operating income of 1.6 billion US dollars, an increase of 19%, attributed to the mother’s net profit1.

90,000 yuan, a year-on-year increase of 211%, corresponding to a profit of 0.

08 yuan, exceeding our expectations.

The performance has increased more than twice because of low base years, and investment income has increased significantly.

The increase in the company’s eligible properties in the first half of the year led to an increase in revenue of nearly 20% each year, and the gross profit margin increased compared to the same period last year.

3 up to 22.

8%; investment income increased by 127% to 1 in ten years.

70,000 yuan (mainly due to the settlement of non-consolidated project profits, the investment income of associates increased by 133% to 1.

500 million).

The faster-than-expected growth of the company’s performance in the first half of the year was mainly due to the decrease in the base in the same period last year (1H18 returned to the net profit of the mother 0).

US $ 600 million. We expect that with the increase of the base in the second half of the year, the growth rate of net profit attributable to mothers will be narrowed to nearly 20% in ten years.

The expansion of land acquisition speeded up the net debt ratio, and the financing end advantage was prominent.

The short-term company’s land acquisition expansion accelerated, operating expansion increased, operating cash decreased by 5.9 billion US dollars, an increase of 23% year-on-year, and cash at hand at the end of the period decreased by 42% earlier, resulting in a net debt ratio at the end of the period that increased by 114.

The first half of the year was 6.


Three 3-year private placement bonds with a coupon rate of 7% were issued at 35 ‰ to 8.

A lump sum of 5% coupon is issued 2.

Five-year US dollar debt was raised to 300 million U.S. dollars.

A one-year short-term financing bond was issued with a coupon rate of 9% to raise USD 500 million. The financing channels were diversified and the financing cost remained low in the industry.

The development budget is expected to exceed the sales target of 15 billion.

In the first half of the year, the company’s contract budget / contracted sales area increased by 43% / 28% to 61 trillion / 490,000 square meters, and the corresponding average sales price increased by 12% to 12,551 yuan / square meter.

We expect the company to expand its sales target by more than 15 billion (25% growth over a ten-year period) under the support of over 30 billion saleable value.

Actively supplement the quality resources of strong second-tier cities, and speed up the completion of materials in the second half of the year.

The company initially obtained 5 residential projects in Shijiazhuang, Chongqing and Yinchuan with a total cost of US $ 5.6 billion, with a total planned construction area of 1.13 million square meters. The company plans to complete a total land investment of US $ 10 billion. We expect the company to continue to supplement the strong second-line in the second half of the yearUrban 杭州夜生活网 high-quality soil storage resources.

The company plans to complete the newly started area / completed area of 1.74 million square meters / 850,000 square meters, which has completed 1.18 million square meters / 80,000 square meters, respectively, and we expect the company’s completion in the second half of the year will accelerate.

Earnings forecasts and estimates remain unchanged for the company’s 2019/2020 earnings forecasts.

Currently leading trades at 6.


7 times 2019/2020 price-earnings ratio.

Maintain Neutral rating and raise target price by 8% to 2.

45 yuan (mainly due to the company’s sales and land acquisition speed), the new target price corresponds to 6.


9x 2019/2020 target price-earnings ratio and 4% upside.

Risks are mainly laid out Tighter than expected urban land planning 北京夜网 policies; settlement progress is less than expected.