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Zhongnan Construction (000961): Performance growth and significant improvement in operating quality

I. Overview of the event Zhongnan Construction released the 2018 annual report, and the company achieved 401 operating income in 2018.

10,000 yuan, an increase of 31 in ten years.

3%, net profit attributable to shareholders of listed companies21.

90,000 yuan, an increase of 219 in ten years.

1%.

Second, the analysis and judgment of beautiful performance, profitability significantly improved the company’s operating income in 2018 to achieve 401.

10,000 yuan, an increase of 31 in ten years.

3%, net profit attributable to shareholders of listed companies21.

90,000 yuan, an increase of 219 in ten years.

1%.

The net profit growth rate is significantly higher than the revenue growth rate mainly due to the company’s gross sales margin and net sales margin of 19.

56% and 5.

77%, an increase of 3 over the previous year.

25 and 4.

01 per share; budget, the company’s return on net assets reached 12.

61%, a sharp increase of 8 from 17 years.

32 single, profitability has improved significantly.

Sales increased rapidly, and the company’s reasonable layout of soil storage achieved sales of 1,466 in 2018.

1 ‰, an increase of 52% in ten years, continue to maintain the top 20 real estate companies in the country.

The company insists on focusing on the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and the densely populated core cities in the Mainland.In 2018, the company entered key cities such as Chongqing, Hefei, Nanning, Wenzhou, Huizhou and other cities.While maintaining the deep cultivation of the region, the overall business layout of the integration is more perfect.

Finance continued to be optimized, and financing channels were unblocked. By the end of 2018, the company had cash in hand 204.

20,000 yuan, an annual increase of 43.

1%, short cash debt coverage decreased by 1.

13. Reduced short-term debt repayment risk; the company’s net debt ratio and assets and liabilities excluding advance accounts re-opened 191.

25% and 44.

97%, a decrease of 41 from the end of the previous year.

7 and 6.

45 averages, leverage continued to improve.

Reporting information, the company obtained bank credit 1182.

53 trillion, successfully issued 20 trillion private placement bonds, obtained 10 trillion half-year tickets, 3 trillion PPN targeted instruments, effectively expanding financing channels.

Third, investment recommendations After undergoing reforms, Zhongnan Construction has achieved leapfrog 南京桑拿论坛 growth in performance and sales, repaired profitability, significantly improved financial conditions, abundant saleable resources, and strong momentum for performance release.

The company’s EPS is expected to be 1 in 19-21.

13, 1.

99, 2.

47 yuan, corresponding to PE is 7.

2/4.

1/3.

3 times, the company’s highest in the past three years, the lowest, the median PE is 147.3/13.

9/61.

5 times, maintain the company’s “recommended” rating.

4. Risk Warning: The real estate industry has tightened policies and sales have fallen short of expectations.