Poly Real Estate (600048) Third Quarterly Report Review: Obvious Financing Advantage

Investment Highlights Event: On the evening of October 25, Poly Real Estate released the third quarter report of 2019.

In the first three quarters, the company achieved operating income of 1117.

0.94 million yuan, an increase of 17 in ten years.

77%; net profit attributable to mother is 128.

33 ppm, an increase of 34 in ten years.

08%.

In the third quarter of 2019, the company achieved operating income of 406.

73 ppm, an increase of 14 years.

87%; realized net profit attributable to mother 28.

78 ppm, a decrease of 6 per year.

45%.

The first three quarters have a combined gross profit margin of 35.

北京spa会所89%, an increase of 3 from the end of 2018.

39 units.

Opinion: The financing advantage is obvious.

This is a long-term advantage and a long-term trend.

1) In the first half of 2019, the company’s comprehensive financing cost was only 4.
.

99%, much lower than the industry average; 2) The credit structure is reasonable. At the end of 2018, bank loans in interest-bearing debt accounted for 71% and 15% of direct financing respectively, and other loans such as trusts accounted for a very low proportion.

The main layout is one or two lines.

We believe that the first and second line fundamentals are at a long-term upward starting point, and the company insists on deepening the first and second line.

As of the third quarter of 2019, the company has 17,118 general-purpose areas under construction and 76.54 杭州桑拿网 million cubic meters of area to be developed; more than 60% of the areas under development are in first- and second-tier cities.

In the first three quarters of 2019, the proportion of first- and second-tier cities’ development amounted to 76%.

In the third quarter, we will step up efforts to obtain land.

In the first three quarters of 2019, the company’s land acquisition amount was 99.6 billion, and the proportion of land acquisition amount to sales amount was 29%. Among them, the land acquisition amount in the third quarter was 46.3 billion, and the proportion of land acquisition amount in the single quarter was 49.

2%.

Steady sales growth.

On January 9, 2019, the company achieved a contract amount of 3467.

73 ppm, an increase of 14 years.

20%; the contracted area is 2293.

780,000 square meters, an annual increase of 13.

29%; average sales price 1.

510,000 yuan / square meter, an increase of 0 in ten years.

8%.

Investment suggestion: Poly Real Estate has obvious advantages in financing, and the land bank is mainly deployed in the first and second tiers, and it is optimistic about the company’s investment value for a long time.

We expect the company’s EPS to be 1 in 2019-2020.

99 yuan, 2.

39 yuan, calculated based on the closing price on October 25, 2019, the corresponding PE is 7 respectively.
8 times, 6.
5x, maintain “Buy” rating.

Risk warning: Monetary policy is substantially tightened, and real estate expectations in core cities are stricter than expected.