Category: Money Tips Date: 2007-05-31
06 EPS 0.67 yuan / share, performance, growth in line with expectations
2006 Annual Report, the company realized main business income of 3.55 billion yuan, growing 38.03% over the same period the previous year, of which: Real estate settlement revenues 3.329 billion yuan, representing an increase of 38.99 percent, and real estate sales accounted for main income 93%, with an average gross margin of 39%; to achieve net profit of 445 million yuan, increase 39.1% over the same period the previous year; the net assets yield rate of 14.42%, compared to 2005 raised 2.76 percentage points, fully in line with our expectations. Excellent performance of the company from real estate development, sales volume continues to maintain a good growth momentum, sales revenue increased significantly. In 2006 the company achieved sales area of 732.4 thousand square meters, selling the amount of 5.114 billion, respectively, year on year growth of 87% and 122%.
From a regional distribution, the Shanghai area and the revenue settlement of 24.37 square meters respectively, and 22.27 billion yuan, accounting for the bulk, so the rest of Shenzhen, Dongguan and Wuhan (see attached map)
An area of outstanding items sold more, for in 2007 to lay a solid foundation for growth
2006 settlement of an area of 639.8 thousand square meters, billing revenue 3.329 billion, the company sold no carry-over of an area of 309.6 thousand square meters, total amount of 1.851 billion yuan for the performance of high-speed growth in 2007 has laid a solid foundation. To the 06 end of the year, the company building area of outstanding items, more than 7 million square meters, involving 12 cities.
Completed a preliminary layout of the three major economic circles, and successfully entered the part of the core second-tier cities
In 2006 into the company's new two regional city of Xi'an and Shenyang, initially completed and perfected the Yangtze River Delta and Bohai Economic Circle, the Pearl River Delta economic circle of the three layout and Wuhan, Xi'an, Shenyang and other core second-tier cities, a total of 10 two cities for investment, which effectively improved the combat ability of the risk of a regional system.
Advantages of real estate regulation is conducive to the development of enterprises, the company's future will remain a high growth
Policy, industry regulation will increase survival of the fittest, is a long-term positive for the company. Sale of real estate sales company in a better future, the company will continue to accelerate cross-regional development strategy, more attention to the speed and efficiency, to seek strategic partners to accelerate the progress of project development, sales pace to improve asset turnover to deal with the industry profit levels that may occur down. We expect the next few years, the company net profit compound annual growth rate will remain above 30%.
If the smooth implementation of additional fund-raising 3.0 billion, the company greatly increased strength, future development will be accelerated
The end of 2006 through the issuance of not more than 266 million new shares to raise funds of about 30 million private placement programs, currently under preparation materials, according to the procedure is expected to be implemented during the first half of this year more likely. If the smooth implementation of additional fund-raising 3.0 billion, the company greatly increased strength, future development will accelerate. On the other hand. The project level, the company is also strengthening the strategic cooperation with foreign funds, as well as further expand the inside and outside the bank's interest-bearing liabilities of the scale, indicating the company a multi-level, diversified the ability to have a better working capital improvements, in order to "fast-rolling development" strategy provided the implementation of matching financing channels.
Increase the performance of the company's forecast, but the maintenance of short-term "cautious recommendation", long-term "recommended" rating
Based on the company's business and prospects of the analysis, we believe that the next few years the company will continue to maintain rapid growth, particularly in 2007 after issuance. 07,08 Our results raise the company expects net profit of 570 million will be 07 raised to 670 million yuan, 740 million will be raised from 08 net profit at 889 billion, by issuing about 9.3 million shares after the share capital of the operator is expected to 07, 2008 EPS were 0.72 yuan and 0.95 yuan, the corresponding dynamic PE were 22 times and 16.3 times the value of significantly undervalued, we believe that by 2007 a more reasonable valuation of 25-30 times of PE, corresponding to the valuation of RMB 18 yuan -21.6 ; comprehensive consideration reserves of company projects, brand development, management capacity and industry consolidation, and other advantages, we believe that companies should enjoy a relatively high premium, but considering the current market and policy environment, to maintain the company's short-term "cautious recommendation", the long-term "Recommended" investment rating.
