Huaxia Happiness (600340): Pay close attention to the repayment and invest in the warming industry, commercial two-wheel drive

Huaxia Happiness (600340): Pay close attention to the repayment and invest in the warming industry, commercial two-wheel drive

Huaxia Happiness released its operating conditions from January to December 2019. The actual sales amount in 201四川耍耍网9 was US $ 145.2 billion, a decrease of 11%, of which the actual development contract amount was 1028 trillion, a decrease of 20%; the contracted area was 11.83 million square meters, a 21% decrease.

In 2019, the company’s total land acquisition amount was 311 trillion, with a total area of 4.21 million square meters, an increase of 204% and 63% over 2018, respectively.

  Comments on scale improvement of scale sales.

The actual sales amount in 2019 was US $ 1,452 trillion, a decrease of more than 11%, of which the contracted amount of real estate development was 1,028 trillion, a decrease of 20%; the contracted area was 11.83 million square meters, a decrease of more than 21%.

The main reason for the decrease in the real estate development contract amount is that the main Beijing-Beijing market is in general degenerate. 天津夜网 At the same time, the decline in the company’s investment strength in 2018 led to insufficient staged value of the property, and the real estate sales scale in 2019 was therefore affected to some extent.Continually narrowed; the proportion of non-environment sales of real estate sales further increased.

Investment has picked up and rental growth has been eye-catching.

In 2019, the company’s land acquisition amounted to 311 million, with a total area of 4.21 million square meters, an increase of 204% and 63% over 2018, respectively, laying a foundation for future sales and performance growth. This has reorganized the financial management and land acquisition standards.The profit expectations of real estate development were clarified, and the profit margin of land acquisition increased.

In 2019, the company may lease an area of 1.11 million square meters, of which 910,000 square meters have been leased, an increase of 91% over the years; rents have been achieved2.

55%, an increase of 75% per year.

Pay close attention to the two-wheel drive of industrial new city and commercial office sector.

Huaxia Happiness Forecast returns to business logic, improving the quality of operations, improving quality indicators such as improving the return rate and precision investment.

In the first three quarters of 2019, the company’s cash flow from sales of goods and labor services reached 645.

69 trillion, accounting for 62 of the sales amount over the same period.

7%, up 13. from the end of 18 years
.

Five single, the increase in sales recovery rate effectively improved the company’s cash flow situation; cash inflows from financing activities reached 938.

9.6 billion, an increase of 65 in ten years.

6%.

Except for the industrial new city, the company continues to strengthen the main business of corporate restructuring, and actively explores related business areas such as commercial office, long-term rental apartment, urban renewal, and health care. Based on the traditional asset-heavy model, it accelerates the development of asset-lightMode, achieving both priorities.

Investment suggestion: Huaxia Happiness has gradually transitioned from “building a garden with a house” to the stage of “promoting a house with a garden”, moving towards a nationwide layout, and the future industry development service income will grow at a considerable rate.

Ping An’s strategic investment has effectively strengthened the company’s capital strength, and in-depth cooperation in potential business is worth looking forward to.

We expect the company EPS to be 4 in 2019-2021.

82, 5.

98, 7.

17 yuan, the corresponding PE is 5.

66, 4.

56,3.

80 times, maintain “Buy” rating.

Risk warning: industry sales fluctuations; policy adjustments leading to operational risks; changes in financing environment; corporate operating risks; exchange rate fluctuation risks; shed reform monetization is not up to expectations.