Vanke A (000002): Double-increased revenue and profit, diversified businesses go hand in hand

Vanke A (000002): Double-increased revenue and profit, diversified businesses go hand in hand

Key Investment Events: On August 20, the company released its 2019 semi-annual report and achieved revenue of 1393 in the first half of the year.

200 million, previously +31.

5%; net profit attributable to mother to 118.

400 million, previously +29.

8%.

Revenue and profits both increased, and debt continued to be reduced under low leverage. 1) Stable growth in performance: Vanke achieved revenue of 1393 in the first half.

200 million, previously +31.

5%, net profit attributable to mother 118.

400 million, previously +29.

8%, mainly by subsidence area (ten years +20.

7%) and settlement average 武汉夜网论坛 price (ten years +9.

5%) due to rising; 2) Settlement gross margin slightly increased: At the end of the reporting period, the company’s settlement gross margin was 28.

3%, an increase of 1 over the same period last year.

0 digits; 3) Cash is king, safety margin is high: At the end of the reporting period, the company had 1,438 monetary funds in hand.

700 million, which is much higher than the sum of short-term borrowings and one-year long-term long-term debt.

At the same time, net cash flow from operating activities was 88.

500 million, operating prospects will continue to maintain healthy cash inflows; 4) Leverage will remain low and interest-bearing debt will be further reduced: at the end of the reporting period, the company’s net debt ratio was 35.

0%, an increase of 4 from the end of last year.

1 average, with interest denied 2253.

200 million, a decrease of 358 from the beginning of the year.

900 million; 5) Minority shareholders ‘equity decreased and income content increased: at the end of the reporting period, the company’s minority shareholders’ equity increased from 798 at the beginning of the year.

6 billion 714.

500 million, attributable to the owner’s equity from 1557.

600 million to 1610.

200 million, through reducing the proportion of minority shareholders’ equity, the company’s income quality has been improved.

Sales increased steadily, and the surplus of unsold resources was sold. 1) Steady sales: The company achieved a sales area of 2,150 in the first half of the year.

10,000 countries, ten years +5.

6%, the sales amount was 3340.

0 billion, +9 a year.

6%, with a growth rate of TOP3 in the real estate industry; 2) Insist on regional deep farming and become the mainstream product: the company ranked the top three in terms of sales of development business in 41 cities in the first half of the year, and small and medium-sized units of less than 144 square meters in residential productsThe ratio is 90.

6%; 3) Abundant carry-over resources and strong indicators of future performance: at the end of the reporting period, the company’s consolidated caliber was 4403.

7 GM has sold the outstanding resources, corresponding to the contract amount of 6215.

5 billion, budget, the company disclosed that the estimated initial completion area will be compared with the initial plan (3076.

60,000) is basically flat, and we are optimistic that the company’s performance will achieve the expected growth.

Land acquisition maintains prudent investment, layout of the first and second lines, and reasonable resource reserves. 1) Land acquisition diversification is prudent: the company acquired 54 new projects in the first half of the year, with a total construction area of 1372.

80,000 countries, equity construction 941.

80,000 countries, the equity ratio of 68.

6%, equity land price 649.800 million, with an average price of 6,900 yuan per square meter; 2) Adhere to the strategy of deep-cultivating core cities: calculated by construction area, with 82 new projects.

0% is on the first and second tiers, calculated by the amount, 88.

4% is on the first and second lines; 3) The total soil storage volume is reasonable: at the end of the reporting period, the company is under construction and planning for construction.

500 million cubic meters, of which 9867 are under construction.

60,000 countries, 5472 planned.

60,000 countries, which can meet the company’s continuous development needs in the next 3 years.

Diversified businesses go hand in hand to strengthen the leading advantages in various fields 1) The property business has achieved both fame and fortune: Vanke Property Revenue 52 in the first half of the year.

800 million, previously +27.

1%, add project signing saturated income 21.

6.4 billion, previously +113.

8%, while increasing income, launch a comprehensive asset service plan around housing asset transaction, management, supporting, value-added investment.

Constantly accumulate customer reputation; 2) Leasing business continued to develop: 101 new projects opened in the first half of the year, totaling 2.

06,000 rooms, the average rental yield of mature projects is 91%; 3) Commercial development optimization and efficiency improvement: In the first half of the year, the company’s total commercial management construction area exceeded 13.5 million countries, of which 110 projects were the SCPG platform with a management area of 9.15 million countries.90% of the opening area is shopping malls, and the overall occupancy rate of shopping malls (excluding renovation projects) is about 97%; 4) Logistics layout is further improved: At the end of the reporting period, Wanwei Logistics has settled in 44 cities and acquired 127 projects.The construction area of the leased property is 996 GM. At the same time, the cold chain function is added to further accelerate the coverage of the cold chain business to the core cities of the country.

  Investment suggestion: Vanke benefited from the increase in the carry-over volume and price of the project in the first half of the year, and its performance increased steadily. It is not easy to achieve a growth of nearly 10% under a high base.

On the operating side of the company, the debt was further reduced in the context of low leverage. On the investment side, it insisted on a reasonable land reserve.

4% are on the first and second tiers; at the development end, the company is expected to complete the initial project at the end of the reporting period, which is the same as the initial stage. If the project completion in the second half of the year is carried forward as scheduled, there will be no worry about the performance;Advantages, we are optimistic that as the company continues to lead the industry as a real estate flagship, diversified businesses can successively become benchmarks in various fields, indicating the direction for successors.

The company’s EPS for 2019-2021 is expected to be 3.

54、4.

11, 4.

79 yuan, corresponding to the current PE is 7.

68, 6.

61, 5.

67x, maintain “Buy” rating.

  Risk alert event: Tighter-than-expected tightening of budget policies in first- and second-tier cities, and the company’s sales repayments did not meet expectations.