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Jinke Co., Ltd. (000656): Sales growth in the first half of the year is eye-catching, and performance remains high

Jinke Co., Ltd. (000656): Sales growth in the first half of the year is eye-catching, and performance remains high
Incident Jinke Co., Ltd. released its 杭州桑拿网 2019 semi-annual performance forecast: in the first half of 2019, the company’s net profit attributable to its parent will be USD 20-26 million, an annual increase of 200% -290%; the basic income will be 0.37-0.48 yuan / share.  Opinions The performance of the first half of the year increased by 200% -290%.Jinke Co., Ltd. released the 2019 semi-annual performance forecast. In the first half of the year, the company’s net profit attributable to its parent was US $ 2.0-2.6 billion, which increased by 200% -290% year-on-year.Net profit increased.In June 2019, the company released the Excellent Win-Win Plan and the Employee Shareholding Plan from 2019 to 2023. If the net profit attributable to mothers in 2019-2022 is no less than 30%, 60%, 90%, and 110%, respectively, compared to 2018,Then, the net profit of the assessment year is 3.5% withdraw special funds.The company’s incentive mechanism was in place, which greatly improved team motivation.As of the end of the first quarter of 2019, the company received donations in advance of 862.42 ppm, an increase of 58 in ten years.24%, which is 2 years of revenue in 2018.1x, future performance growth can be expected.  Bright sales growth.According to the sales list of the top 100 real estate companies released by CRIC, the company achieved sales of 788 in the first half of the year.7 trillion, an annual increase of 36%, 53% of the expected 1500 trillion sales target has been achieved, ranking 17th in the industry.The company has ample land reserve. As of the end of 2018, the company’s saleable area exceeded 41 million square meters, ensuring sustainable development in the future.  Leverage levels continued to decline, and financing channels decreased.As of the end of the first quarter of 2019, the company’s asset-liability ratio was 83.92%, falling by 2 every year.3 units; net debt ratio 154.73%, a decline of 80 per year.1 unit.The company’s financing channels are preliminary. Since the beginning of the year, 2.7 billion short-term loans, 23 trillion times of notes and 2 billion corporate bonds have been issued smoothly, and financing costs have continued to improve.  Investment suggestion: Jinke Co., Ltd. is a leading real estate development company in the Chengdu-Chongqing region. It has ample land reserves and can get first-mover advantage in land.In the initial period, the company’s sales accelerated, 苏州桑拿网 and performance growth was guaranteed.A variety of incentives, such as a stock incentive plan and win-win cooperation, have enhanced employee motivation.We estimate that the company EPS for 2019-2021 will be 0.92, 1.11, 1.RMB 34, corresponding to PE of 6.91, 5.69, 4.70 times, maintaining the “overweight” level.  Risk reminders: industry sales fluctuations; policy adjustments leading to operational risks (shed reform, restructuring, budget policies, etc.); changes in the financing environment (mortgages, development loans, interest rate adjustments, etc.); corporate operational risks (personnel changes, construction, land acquisition, etc.)The risk of exchange rate fluctuations.