First Capital Holdings (600376) 2019 Third Quarterly Report Review: Sales, High Performance Subsidiary intends to increase capital, expand shares, downgrade interest rates

First Capital Holdings (600376) 2019 Third Quarterly Report Review: Sales, High Performance Subsidiary intends to increase capital, expand shares, downgrade interest rates
In the third quarter of 19th quarter, the revenue quarter was + 39%, and the performance quarter was + 29%. High-margin projects in and outside Beijing were carried forward to 3Q19 to achieve revenue of 295.4 trillion, +38 a year.8%; net profit attributable to mother 23.8 ‰, +28 per year.6%; gross and net profit margins are 42.5%, 8.0%, double +16 respectively.0pct, -0.6 points.The three expense ratios are 11.0%, one year -0.3pct; budget benefit 0.82 yuan, +38 a year.1%; estimated average return on net assets is 8.2%, ten years +2.0pct; settlement area 140.30,000 square meters, ten years +31.6%; the average settlement price is 21,064 yuan / flat, +5 for ten years.4%; high growth results from the settlement of high gross margin projects in and outside Beijing, such as Beijing Guofeng Shangyue, Chengdu Huazhao Zijing, Fuzhou Champagne International, etc .; the performance growth rate is lower than the revenue growth rate due to: 1) business tax and additional time+175.6%, due to the increase of tax increase in the land; 2) +172 twice a decade.2%; 3) The increase in settlement of cooperation projects increased the proportion of minority shareholders’ equity to 48.8%; 4) Investment income for ten years -60.8%.Considering: 1) the company’s 19-year planned completion year + 36%; 2) the advance payment at the end of the reporting period reached 675.500 million, ten years +11.3%, covering 18 years of revenue reaching 1.7 times; sales and completions increased rapidly, and record high advances in advances guarantee the company’s gradual release of performance. Sales in the third quarter of 199.1 billion US dollars, more than + 32%, according to the established high probability will exceed 100 billion plans 3Q19 to achieve a contract amount of 691.3 ‰, +31 a year.8%, completed the initial sales plan 68.4%; sales area is 241.40,000 countries, +21 a year.2%, of which 87 in Beijing sales.90,000 countries, +68 per year.7%, accounting for 36.4%, sales outside Beijing 153.50,000 countries, +4 per year.3%, accounting for 63.6%.The average selling price was 28,637 yuan / square meter,深圳桑拿网 which was +7 from the previous 18 years.3%.Considering: 1) The company plans to resume work for 1,997 in 19 years.60,000 countries, +4 a year.9%, and plan completion rates for 17 and 18 years are 166% and 173% respectively, indicating that there are still abundant resources available for sale in 19 years; 2) The company’s soil reserves are concentrated in strong first- and second-tier cities, and the proportion of soil reserves in Beijing reaches 32%, Under the background that the current first- and second-tier markets can be included, 19 years of gradually eliminating or exceeding expectations; 3) the company’s sales in the first three quarters reached 691.3 billion, conservatively assuming that the sales volume in the fourth quarter exceeded flat, and the long-term sales amount is expected to reach 117.4 billion, corresponding to a 10-year sales growth rate of 17%. 3Q19 is cautious in land acquisition and cost controllability. The subsidiary plans to increase capital and share expansion by 4 billion to help reduce debt ratio and increase planned area by 163 in 3Q19.20,000 countries, +81 a year.6%, of which 200,000 and 1.43 million countries were replenished in and out of Beijing, accounting for 13% and 87%, respectively, and efforts to acquire land outside Beijing continued to increase.Corresponding to the land price of 153.100 million, previously +24.2%; the average floor price is 9,378 yuan / square meter, up to -31.6%; take up land accounts for 22 of this kind.1%, taking the average price of land as the average selling price of 32.7%.Take care carefully and pay attention to cost control.As of 19Q3, there were 1,953 uncompleted soil reserves, of which 74.7% are in strong first- and second-tier cities (Beijing accounts for 31.8%), excellent soil storage structure to ensure a steady increase in sales.19H1 comprehensive financing cost 5.38%, +0 from earlier 18 years.02pct, still at the allowable level.At the end of 19Q3, the asset-liability ratio and net debt ratio were 81.8%, 184.0%, one year -0.03pct, +12.2pct; In contrast, the company ‘s wholly-owned subsidiary, Urban Development Group, plans to increase capital and shareholding on the Beijing Stock Exchange to not exceed 4 billion U.S. dollars. Without losing control of the Urban Development Group, it will help to increase the net assets of the Urban Development Group and the company and reduceNet aldehyde rate.Reported total, on-balance sheet sales 376.2 ppm, +14 a year.0%. Investment suggestion: sales, high performance, subsidiary plans to increase capital and increase dividend reduction rate, maintain the “strong push” rating company as a Beijing state-owned housing company, in the context of the accelerated state reform in Beijing, make full use of rich experience in incentive plans andThe significant advantage in the integration of domestic capital in Beijing is expected to be an important target for the reform of Beijing. The company has actively changed since the reorganization and listing in 2007. It has deeply cultivated Beijing and actively expanded outside Beijing to promote rapid sales growth, becoming the first domestic 100 billion yuanState-owned housing enterprises; the company’s current layout is mainly strong first-tier and second-tier, and is the king of Beijing’s land reserve.Recently, the major shareholder Shoukai Group plans to increase its holding of 1-2% of the company’s total shares, which fully demonstrates its current value recognition and future confidence.We maintain the company’s full year earnings forecast for 19-21.55, 1.79, 2.05 yuan, corresponding to 19 / 20PE is 5.5/4.8 times, NAV discount reached 56%, 18A / 19E dividend yield as high as 4.7% and 7.2%, maintaining target price of 12.67 yuan, maintaining the “strong push” level. Risk warning: the real estate market adjustment policy tightens more than expected and the industry funds tighten more than expected.