Huaxia Happiness (600340): Increase in sales and investment intensity

Huaxia Happiness (600340): Increase in sales and investment intensity

The event company released a semi-annual operating report, 4?
The company achieved sales of 335 in June.

300 million, down 6 every year.

5%; 1?
The cumulative sales amount in June was 640.

700 million, down 20 a year.

4%.

The core point of view is affected by the insufficient saleable value, and the sales amount is extended every time.

The company released a semi-annual operating report, and the cumulative sales amount in the first half of 2019 reached 640.

700 million, down 20 a year.

4%; The sales 青岛夜网 amount in the second quarter of 2019 was 335.

300 million, down 6 every year.

5%, in the second quarter the amount of excess sales has been significantly narrowed.

In terms of sub-items, the settlement income of the industrial parks increased every year in the first half of the year.

3%, the real estate development and sales amount is once every ten years26.

7%, hotel and property increased by 19 in ten years.

1%, it can be found that the decrease in sales amount is mainly due to the decrease in the actual business sales amount, while the poor actual business sales are mainly affected by the insufficient saleable value and the cooling of some urban markets.

The land side actively replenished and the investment intensity was greatly increased.

Since 2019, the company has significantly increased its investment. In the first half of the year, it increased land construction by 3.95 million countries, a year-on-year increase of 47%.

Especially this year, the Beijing, Tianjin and Hebei regions have gradually resumed their bidding, auction and listing markets, and the company has expanded its efforts in this traditionally advantageous area.

In terms of investment intensity, the company’s investment intensity (land acquisition amount / sales amount) reached 83% in the first half of 2019, compared with 41% in the same period last year.

At the same time, the average average floor price of newly added land this year is only 3148 yuan per square meter. Against the backdrop of the current land market, the company’s differentiated land acquisition capabilities will gradually emerge.

Financial forecasts and investment recommendations maintain a BUY rating and a target price of 41.

60 dollars.

We forecast the company’s EPS for 2019-2021.

20/6.

94/9.

35 yuan.

The PE of the comparable company is estimated to be 8X in 2019, and we give the company a PE estimate of 8X in 2019, corresponding to a target price of 41.

60 dollars.

Risks suggest that the growth of new investment in the park is less than expected.

Land acquisition in non-Beijing-Tianjin-Hebei regions fell short of expectations.