Huafa (600325) Annual Report Review: Nationalization of Sales Enters Fast Track

Investment Highlights: Events.

The company announced its 2018 annual report.

In 2018, the company achieved operating income of 236.

99 ‰, an increase of 18 per year.

8%; Net profit attributable to shareholders of listed companies22.

8.4 billion, an increase of 41 every year.

88%; Realize basic profit income 1.

08 yuan.

The company distributes a cash dividend of 1 per 10 shares to all shareholders.

5 yuan (including tax).

In 2018, driven by the increase in carry-over of property projects, the company’s operating income increased by 18%.

At the same 北京桑拿洗浴保健 time, the company’s net profit attributable to its mother increased by 41.

88%.

According to the company’s 2018 annual report, in 2018, the company started a new construction area of 513.

640,000 square meters, an increase of 132 in ten years.

97%; completed area 178.

570 thousand flats.

As of the end of 2018, the company has a land reserve of 750 GFA.

04 thousand square meters, with an area under construction of 1004.

230,000 square meters, an increase of 40 in ten years.

38%.

In 2018, the company’s sales exceeded US $ 50 billion for the first time, and the contracted sales reached US $ 58.2 billion, a gradual increase of 87.

64%, sales area is 194.

870,000 square meters, an increase of 45 in ten years.

69%.

In 2018, the company successfully obtained 20 new projects.

The company’s land reserves 杭州夜网 in Central China and East China account for 46.

95%; South China Guangdong-Hong Kong-Macao Greater Bay Area accounted for 29.

81%; North China’s regional land reserve accounts for 8.

75%; other regions account for 14.

49%.

Regional layout was further optimized.

In 2018, the company carefully cultivated emerging industries, and has formed a “1 + 3” business development pattern that focuses on residential development, commercial real estate, long-term rental housing, construction industrialization and residential supporting industries.

In 2018, the company held its own properties, and its housing leasing business steadily landed.

In February 2019, Zhuhai Huafa Huayi Investment Holding Co., Ltd., a wholly-owned subsidiary of the company, participated in the investment of Zhuhai Jinmingming Equity Investment Fund Partnership (Limited Partnership) with its own funds of 50 million yuan.

In March 2019, the company’s wholly-owned subsidiary Guangye Investment Holdings Co., Ltd., as a new limited partner, invested 15 million yuan in its own funds to participate in the investment of Huajin International Credit (Cayman) Limited Partnership.

Investment Advice.

Zhuhai state-owned enterprise reform target, the fundamentals continue to improve, “continuous market” rating.The company is the only real estate operation platform of Huafa Group. Based on Zhuhai, the company’s real estate business has gradually expanded to nearly 30 major cities across the country, forming Zhuhai, South China, East China, Central China, North China, Shandong 6 regions and the “6 + 1″Area layout.

According to the company’s 2018 annual report, the company has now formed a “1 + 3” business development pattern that focuses on residential development, commercial real estate, long-term rental housing, construction industrialization and residential supporting industries.

We expect that the company will achieve an EPS of 1, respectively, from 2019 to 2020.

26 yuan and 1.

59 yuan.

The company RNAV is 21.

76 yuan.

Taking into account the company’s potential beneficiary group reform of state-owned enterprises, and the incentive mechanism is gradually in place, we take 0.

50 times of RNAV and 11 times of dynamic PE in 2019 as the company’s target price in the next six months, the corresponding reasonable value range is 10.

88 yuan-13.

86 yuan, maintaining the company’s “primary market” rating.

Risk Warning: The company faces interest rate hikes and policy risks, as well as the risk of unsuccessful development project concentration and transformation.