Zhongnan Construction (000961): Sales growth replaces land acquisition cost improvement

Zhongnan Construction (000961): Sales growth replaces land acquisition cost improvement

The main points of the report are from January to June 2019, and the company’s cumulative contracted sales amount was about 811.

9 trillion, an annual increase of 24%, the cumulative sales area is about 646.

100,000 square meters, an increase of 24% in ten years.

The incident comment policy is definitely tight, and the sales growth rate is sharp.

In June 2019, the company’s contracted sales amount was 191.

1 trillion US dollars, an annual increase of 17%, sales area of 144.

80,000 square meters, an increase of 7% in ten years.

From January to June 2019, the company gradually contracted the sales amount of 811.

9 trillion, an annual increase of 24%, the cumulative sales area of 646.

100,000 square meters, an increase of 24% in ten years.

From January to June 2019, the company’s cumulative average sales price was 12,568 yuan / square meter, and the ratio of the average land conversion price to the cumulative average sales price was 50.

56%, a decrease of 2 compared with the previous May.

62pct, which is related to the month-on-month increase in the average sales price in June and the higher land acquisition in third-tier cities, leading to the replacement of land acquisition costs.

The proportion of land acquisition in third-tier cities increased in June, and the cumulative land acquisition cost from January to June decreased from the previous May.

In June 2019, the company’s land acquisition area was 89.

120,000 square meters, the total price is 48.

8.7 billion, land is concentrated in the Yangtze River Delta region.

From January to June 2019, the company gradually took the land to build a surface of 423.

580,000 square meters, down 25 a year.

26%, gradually taking the total price of 269.

15 ppm, an increase of 11 years.

84%.

From January to June 2019, the average land price was gradually paid at 6354 yuan / square meter, which was a decrease of 3 from the previous May.

52%.

The fair incentive plan was issued to show confidence in future development.

In May 2019, the company announced its 2019 equity incentive plan.

The incentive objects are mainly related to the company’s real estate business and construction business headquarters and regional responsible personnel and business backbone personnel.

The performance requirement of the equity 天津夜网 incentive for the company is that the company’s net profit attributable to mothers in 2019-2021 is no less than 560%, 1060%, and 1408%, respectively, and the corresponding net profit attributable to mothers is 39.

8, 69.

9, 90.

900 million.

The equity incentive plan allows members of the company to share the benefits brought by the growth of the company, enhance the enthusiasm and creativity of employees, quickly enhance the company’s competition, and also demonstrate the company’s confidence in the future development.

Investment suggestion: Deeply plowing the Yangtze River Delta region, equity incentives show confidence.

The company adheres to the high turnover model, and the sales and performance growth rate maintains a high level quickly. The company has sufficient soil reserves to meet the development needs of 3-4 years, and deepen the Yangtze River Delta region, which is beneficial to fully benefit from the national strategy of the Yangtze River Delta integration.A new round of equity incentive plans and high incentive plans demonstrate and grow confidence.

It is expected that EPS for 2019-2021 will be approximately 1.

10, 1.

89, 2.

46 yuan, corresponding to the current expected PE is 8 respectively.16, 4.

74, 3.

64 times, maintain “Buy” rating.

Risk Warning: 1.

Uncertainty in the liquidity environment; 2.

There may be uncertainties in the adjustment policies of the real estate business.