Poly Real Estate (600048): Semi-annual Performance Exceeds Expectation Property Sector Begins Listing in Hong Kong

Poly Real Estate (600048): Semi-annual Performance Exceeds Expectation Property Sector Begins Listing in Hong Kong

Event: On August 12, the company released its semi-annual report for 2019 and achieved revenue of 711 in the first half of the year.

4.1 billion, previously +19.

48%; net profit attributable to mother is 99.

5.5 billion, previously +53.


The performance in the first half of the year exceeded expectations, thanks to the increase in the area of completed deliveries and the increase in project equity ratio. The company achieved revenue of 711 in the first half of 2019.

4.1 billion, previously +19.

48%, mainly due to the increase in the area of land delivered and the increase in the unit price of the carry-over; net profit attributable to the mother was 99 in the first half of the year.

5.5 billion, previously +53.

28%, mainly because: 1) gross profit margin of real estate business settlement 40.

96%, an increase of 5 per year.

68 units; 2) Increase in investment income; 3) Increase in the equity ratio of reported combined carryover projects.

From January to June, sales exceeded 武汉桑拿社 250 billion yuan, and the growth rate was among the top ten real estate companies. The third company achieved a contracted area of 1,636 in the first half of 2019.

470,000 countries, +12 a year.

56%; the amount of contract reached 2526.

2.4 billion, previously +17.

33%; In addition, according to the sales data released by Kerer in the first half of 2019, the company’s full caliber and related rights are ranked fourth in the industry; the company’s one-time growth rate improved in the first half of the year, but the horizontal comparisonRanked third among the top 10 in the industry.

Taking land to continue to cultivate the core area, the company accelerated the layout in the second quarter from January to June. The company newly expanded 44 projects, increased the floor area by 826, and the total cost was 53.3 billion.

1) In the second quarter, the intensity of land acquisition began to increase: According to monthly announcements, in May and June, 256 and 2.35 million lands were acquired respectively; 2) In terms of regional layout, adhere to deep cultivation in key cities: in the first half of the year, supplement the soil storage in first-tier and second-tier citiesThe amount and area ratio are 78% and 60% respectively. Under the current fundamentals and policy environment, we are optimistic about the company’s strategy of insisting on deep cultivation in core areas.

The fund is healthy, the property business starts the listing process in Hong Kong 1) Against the background of tight funds in the first half of the year, the recovery rate does not fall but rises: The company gradually realized sales recovery of 216.8 billion in the first half of the year, and the return rate increased by 8 compared with the same period last year.To 86%; 2) The debt end further improved, leading the industry in financing costs: at the end of the reporting period, the company’s net debt ratio was 76.

64%, an earlier decrease of 3.

A total of 92, interest-bearing denials of 271 billion, and interest-only denials of comprehensive costs are only about 4.

99%, continue to maintain the industry advantage; 3) Poly Property submitted H-share listing information: As of April 30, Poly Property contract management area is about 3.

700 million cubic meters, nearly 2 in the tube area.

0 billion cubic meters, of which the extension project has a tube area of nearly zero.

900 million square meters, if successfully landed in the capital market, or further enhance the property management sector, improve the company’s diversified layout.

Investment suggestion: The company is one of the leading stock real estate companies. It has obvious advantages in financing and operation control, and also has the unique advantages of a central enterprise resource integration platform.

In the first half of 2019, the company insisted on the layout of core cities, the project completion and carryover were in line with expectations, and the proportion of project equity was picked up, which resulted in a substantial increase in net profit attributable to mothers.

In the first half of the year, the company’s sales and performance elasticity was warped. At the same time, the property sector started the process of listing in Hong Kong. We are optimistic that the company fully mobilized high-quality resources to match its advantage background, and achieved better-than-expected performance under perfect control and optimized incentive mechanism.

We expect the company’s EPS to be 1 in 2019-2021.

97, 2.

40, 2.

89 yuan, corresponding to the current PE is 7.

08, 5.

81, 4.

81x, maintain “Buy” rating.

Risk reminder events: Tighter-than-expected tightening of budget policies in first- and second-tier cities; the company’s sales receipts did not meet expectations.