Huaxia Happiness (600340): Steady performance, significant improvement in cash flow

Event: On August 16, the company released its semi-annual report for 2019 and achieved revenue of 387 in the first half of the year.

300 million, previously +10.

7%; net profit attributable to mother 84.

800 million, previously +22.


The performance in the first half of the year has steadily increased, profitability has improved, and control optimization has been significantly reduced. 1) Performance has increased steadily: The company achieved revenue of 387 in the first half of 2019.

300 million, previously +10.

7%; net profit attributable to mother 84.

800 million, previously +22.

4%; 2) Gross profit margin hit a new high: The company ‘s urban real estate development business gross profit margin was 29 from the end of last year.

73% increase by 6.

08 averages to 35.

81% of the industrial development business was 77 from the end of last year.

32 is increased by 6.

49 good 83.

81%, and gross profit accounted for 54%, driving the overall gross profit margin to 48.

73%; 3) Outstanding cost control: the company’s management expenses in the first half of the year decreased by 17% compared with the same period last year, and the management expense rate decreased by 2 compared with the same period last year.

4 units, the effect of reducing fees and increasing efficiency is remarkable.

More than half of the sales contribution in non-Beijing regions and the national layout has taken shape. 1) The proportion of performance contributions in non-Beijing regions has increased: the reported growth rate, and revenue outside the Beijing region has achieved 148.

0.8 billion, an increase of 96 in ten years.

5%, accounting for 21% of the company’s main business operating income from the same period last year.

69% increased to 38.


The proportion of contributions from areas outside Beijing has increased significantly; 2) Sales from non-Beijing areas have contributed more than half: the report summarizes that the area outside Beijing is 375.

6 billion, an increase of 16 in ten years.

8%, accounting for 39% of the company’s overall budget from the same period last year.

9% excellence improved to 58.

2%, the proportion of sales area from the same period last year.

2% to 66.

2%, from the visibility of performance and sales contribution ratio, the company has gradually narrowed the restrictions on the Beijing-Beijing region, the national layout of the new industrial city model in the non-Beijing region has achieved initial success, and the risk of unacceptable copying of soil and water has been released.

The industrial new city business has strong growth, and the real estate development business is actively acquiring land. 1) The industrial new city has achieved fruitful results in off-site replication. In the first half of 2019, the company invested in and operated the park to newly add 328 contracted enterprises, and the new contracted investment amounted to 105.2 billion yuan, increasing year by year9%, of which 266 enterprises from non-environmental regions have entered into the park with a new contracted investment of 939.

29 ppm, an increase of 20 in ten years.

18%, accounting for 89% of the company ‘s overall new contracted investment; 2) Active land acquisition and nationwide distribution: In the first half of the year, the company ‘s land acquisition transaction volume increased by 69% over the same period last year;66% and 68% are located outside the Beijing area, including 42% in the Yangtze River Delta area and 15% in the Zhengzhou area. The acquisition of resources has been enhanced and the layout has been scattered to provide protection for the company’s development.

Financing and cash flow continued to improve, and a new chapter was opened in cooperation with Ping An. 1) The amount of financing increased, the recovery rate increased, and the cash flow improved significantly: Reported that cash flow from financing reached 760.

600 million, an increase of 108 over the same period last year.


Net financing cash flow was -97 from the same period last year.

200 million, increased to 317.At the same time, the company’s return rate has jumped from 46% in the same period last year to 62% this year. The significant increase in the sales return rate and the raising of a large amount of funds provide strong guarantee for the company’s subsequent development;The first cooperation order is settled and the future is expected: According to the announcement on June 17, the company paid 58 to Ping An Life.

杭州夜网论坛2.3 billion transfer of a wholly-owned subsidiary, Ping An Life entrusted the company to build the target property on the project site, and provide reverse management services for the operation and management services. This real estate cooperation transaction marks the company’s active exploration and cooperation in commercial office and related businesses.Landing is of great significance for revitalizing the company’s existing assets and finding new growth points.

Investment Advice:.

The company’s performance in the first half of the year has steadily increased, and the gross profit margin of real estate development and the industrial new city business has risen. It can be seen that the improvement after the national layout has begun to appear on the performance side; at the same time, the investment in the new industrial business of the new industrial park has continued 武汉夜网论坛 to increase, and it has continued to increase investment with non-Beijing.The increase in the regional proportion also marks the further confirmation of the success of remote replication; the conversion, the company’s cash flow has improved significantly, and the first project after the strategic cooperation with Ping An has also landed, we are optimistic about the company’s success in achieving remote replication and improved cash flowAfter several years of continuous cooperation with Ping An, the company will reach a new level. It is expected that the company’s EPS for 2019-2021 will be 5.

12, 6.

76, 8.

75 yuan, corresponding to the current PE of 5.

09, 3.

85, 2.

98x, maintain “Buy” rating.

Risk alert event: City tightening policy tightened more than expected; the company’s sales repayments did not meet expectations.