Xinhualian (000620) 2018 Annual Report Comment: Profitability Improves Efficiency, Cultural Tourism Enters Harvest Period
Investment highlights: Event: The company released the 2018 annual report, and the company achieved operating income of 140 in 2018.
0 ppm, an increase of 88 in ten years.
2%, achieving net profit attributable to shareholders of the parent company.
90,000 yuan, an increase of 40 in ten years.
Operating efficiency has improved significantly, and net profit after deductions has further increased.
The company’s performance growth 武汉夜网论坛 rate was lower than revenue growth rate mainly due to at least a portion of the increase in net investment income.
Net profit of the company replacing non-recurring gains and losses9.
7 ppm, an increase of 206 in ten years.
9%, mainly because the company’s operating income further increased, and the gross profit rate improved and the period expense ratio decreased.
The company’s comprehensive gross profit margin increased in the short term in 20181.
7 totals; the rate of expenses per period is reduced by 5.
Real estate contributes more than 80% of its revenue and is still a ballast for performance.
Real estate business contributed 81 in 2018.
1% operating income and gross profit margin of 38.
More than 1% is higher than cultural tourism and construction and decoration business, which is still the company’s basic market.
Real estate business settlement 113.
5 ‰, an increase of 84 in ten years.
9%; realized sales area of 880,000 miles, which has remained flat over the years, with a sales value of 10.7 billion U.S. dollars, with an increase of 3 years.
The company’s land layout is concentrated in cities such as “Beijing-Tianjin-Hebei”, “Yangtze River Delta”, “Daya Bay”, and land cost input.
As of the end of 2018, the area to be developed is 194.
70,000 countries, an annual increase of 37.
6%, equity accounted for 95.
The cultural tourism project has entered the operational phase, and the “cultural tourism + real estate + finance” strategy has been actively implemented.
After the listing, the company actively transformed its cultural tourism business, and a large number of cultural tourism projects have recently entered the operational phase.
Changsha Xinhua Lianguanyao Ancient Town will operate in August 2018; Wuhu Xinhua Lianjiuzi Ancient Town and Xining Xinhua Lian Tongmeng Paradise are planned to operate in July 2019; the 5A scenic spot acquired by M & A Langzhong Ancient City will officially operate in January 2019; Jeju, KoreaXinhualian Jinxiu Villa has obtained the development license.
In terms of financial business, the holding subsidiary Xin Silk Road Cultural Tourism (00472.
(Hong Kong) Acquired 100% of the economic interests of China Finance by issuing shares to Derived Technology; the company holds 8 shares.
5% of Changsha Bank was listed on the Shanghai Stock Exchange in September 2018.
Leverage has steadily decreased, and increasing holdings by controlling shareholders highlight confidence.
In the first quarter of 2019, the company’s asset-liability ratio withdrawn from advance receipts was 79.
6% before the end of 20171.
5 units; net aldehyde supplement 197.
4% before the end of 2017 12.
8 averages, marginal improvement in leverage.The Q1 2019 cash to short-term interest-bearing debt coverage ratio was 77.
8%, before the end of 2017 35.
5 shares per share, there is some pressure on short-term debt repayment.
Total financing at the end of the period was 247.
8 ‰, ten years ago 7.
The controlling shareholder of the company, Xinhua Lian Holdings, gradually increased its holdings of the company’s issued shares during the year1.
38%, highlighting confidence in the company’s future business development.
Profit forecast and investment grade: The company actively transforms the cultural travel business. After a large number of projects enter the operating period, the cultural travel project will become an important growth driver of the company, while the real estate development business remains the company’s basic disk.
We estimate that the company’s operating income from 2019 to 2021 will be 15.2 billion, 15.9 billion, and 16.3 billion, respectively; net profit attributable to mothers will be 14 respectively.
0 billion, 16.
400 million and 20.
0 yuan; EPS is 0.
74 yuan, 0.
86 yuan and 1.
05 yuan, corresponding to PE is 6.
3 times and 4.
Maintain the “Highly Recommended” rating.
Risk warnings: 1. The income contributed by the cultural tourism business is less than expected; 2. The project settlement is less than expected.