Joy City (000031): High growth, incremental growth, incremental retail business drives rapid rental growth
The company achieved operating income of 182 in the first half of the year.
70,000 yuan, an increase of 103% in ten years, net profit attributable to mothers19.
300 million, an annual increase of 42%.
Accelerated development business carry-over and increase in gross profit margin boosted performance growth: The large increase in revenue in the first half of the year was initially due to an increase of 139% in development business settlement income, which accounted for 82%; the growth rate of net profit attributable to mothers was less than the increase in revenue.The sale of W hotels in the same period last year achieved 11.
700 million investment income led to a high base period.
Looking to the future, the company’s carry-over rhythm will always be maintained, which will lead to high performance growth.
Sales of development business increased rapidly. Increased holding business and existing projects helped to increase rents. In terms of development business, the company achieved sales of USD 25.4 billion in the first half of the year, an increase of 62.
9%, 42% of the 60 billion sales target has been achieved.
The company’s overall delivery plan is about 100 billion yuan. The second half of the year is the peak period of delivery, and the proportion of delivery is about 65%. It is expected that 60 billion sales will be achieved.
In terms of land acquisition, the company acquired a total of 9 projects in the first half of the year, with a total allowable area of 103.
4 GM, corresponding to a total price of 71 million, the amount of land acquisition accounted for 28% of the sales amount; in July-August, the company’s land acquisition area exceeded the first half of the year, the land acquisition intensity and the volume of single items increased significantly.
We believe that the company has outstanding advantages in non-market-oriented land acquisition, the Group’s stock, the use of Joy City brand advantages, and industrial integration are all promising. The company is also involved in the field of first- and second-tier linkage and area development, which will help the company achieveQuality items at potential market prices.
In the holding business, new and existing projects jointly promoted rapid growth in rental income.
Up to now, the company has opened a total of 10 Joy City projects with a rentable area of about 870,000 countries. There are 5 Joy City and 4 Joy Chunfengli projects under construction or planned, with a total rentable area of 126.
Nine projects in 40,000 countries are expected to be successively opened in 2020-2022 to contribute performance.
Interest-bearing leverage has fallen, and financing costs have remained low: net interest-bearing debt ratios have fallen by 3 pct compared to earlier periods, and short cash debt has increased by 0 compared to earlier periods.
27x to 1.
In terms of financing, issue 23.
600 million corporate bonds with coupon rates of 3 respectively.
1%, continue to remain low.
We believe that the attributes of central SOEs will become one of the priorities of funders in the 杭州桑拿 context of tightening financing. The company fully enjoys the credit endorsement of COFCO, and the financing advantage will continue.
Investment rating and profit forecast: The company’s EPS is expected to reach 0 in 19-20.
68 yuan and 0.
77 yuan, corresponding to the current PE of 10.
1x and 8.
9x, maintain “Buy” rating.
Risk reminders: 1. Continued policies in the real estate industry have led to a decline in market enthusiasm in first- and second-tier cities; 2. Unopened Joy City and Joy Chunfengli projects may not be able to contribute performance due to the opening time not being expected; 3, the company’s real estate development business is slowThe settlement rhythm continued, and the actual actual settlement performance fell short of expectations.