Poly Real Estate (600048): 59% increase in interim results

Poly Real Estate (600048): 59% increase in interim results

summary.

Poly Development Announces 2019 Interim Results. Net profit in the first half of the year increased significantly59.

1% to 104 ppm (RMB, the same below), the strong performance growth was mainly due to the increase in profitability of settlement projects and the decrease in the proportion of minority shareholders’ equity.

The announced net profit in the first half of the year accounted for approximately 41 of our forecasted profit.

9% and market forecast of 44.

5%.

We maintain our forecasts and target prices.

Buy thoroughly.

Express results for the first half of 2019.

In the first half of 2019, Poly Development Revenue and Net Profit increased by 19 respectively.

5% to 711.

600 million and 59.

1% to 104 ppm.

The strong performance was mainly due to the increase in gross profit margin of settlement items and the increase in the proportion of profit attributable to shareholders.

As a result, operating profit margin and net profit margin increased by 3, respectively.

5 up to 24.

6% and 3.

6 up to 14.

5%.
The announced net profit in the first half of the year accounted for approximately 41 of our forecasted profit.

9% and market forecast of 44.

5%.
After the announcement of detailed results, the organic forecast earnings will be adjusted upwards.

Contract revenue in the first half increased by 17.

3%.

In the first half of 19, the company’s contract cash and area increased by 17 respectively.

3% to 2,526 trillion and above12.

6% to 16.37 million flats.

Despite the possibility of single-month sales growth in June to 5.

7%, but the 北京桑拿洗浴保健 company’s sales rankings still rose from fifth in 2018 to fourth in the first half of 2019.

We expect the annual budget for 2019 to reach $ 480 billion.

Therefore, as of June, the company’s contracted sales completed supplement 52.

6%.

We believe that Poly will be able to meet our sales forecast this year. Based on the 404.8 billion sales in 2018, it is expected to grow by 18 this year.

6%.

Discreet land acquisition.

According to Kerer data, Poly Development acquired 7.16 million square meters of land reserves in the first half of the year, with land expenditures of US $ 46.6 billion.

Land expenditures accounted for 18 of contracted sales over the same period.4%, reflecting the company’s cautious cautious attitude towards the current land market.

As of March 2019, the company owns 2.

With a land reserve of 300 million square meters, the current large amount of soil storage can realize its future development. The company also plans to complete the completion of 27.5 million square meters of properties in 2019, which is a 24% increase from the actual completion area of 22.17 million square meters in 2018. The profit growth is more predictable.
Maintain target price of 16.

43 yuan.

We maintain our 2019/20 profit forecasts at 247 ppm and 309 ppm.

However, we think the market will raise its forecast after the announcement of the interim results.

We maintain our target price of 16.

43 yuan, equivalent to 7.

9x 2019 P / E.

Buy thoroughly.