Rongsheng Development (002146)： High sales growth and low leverage
Rongsheng Development (002146): High sales growth and low leverage
Event Rongsheng Development released its 2018 annual report: Rongsheng Development achieved operating income of 563 in 2018.68 ppm, an increase of 45 in ten years.64%; net profit attributable to mother is 75.65 ppm, 杭州夜网论坛 an increase of 31 in ten years.31%; estimated average return on net assets increased by 24.89%, an annual increase of 2.45 averages; basic profit return 1.74 yuan. Opinion settlement accelerated, and gross profit margin continued to increase.Rongsheng Development achieved operating income of 563 in 2018.68 ppm, an increase of 45 in ten years.64%; net profit attributable to mother is 75.65 ppm, an increase of 31 in ten years.31%.The high growth trend of performance is mainly due to the acceleration of the company’s carry-over, and the closed projects are in the phase of rising prices and prices in 2016.Gross profit margin and net profit margin were 31.5% and 14.7%, the gross profit margin increased by 2 percentage points from the previous year, but the net profit margin decreased by 1 percentage point, mainly due to the company’s sales scale expansion caused by expenses and led to a decline in investment income.As of the end of 2018, the company received advance accounts 870.49 ppm, a year-on-year increase of 30%, a definitive indicator of future company performance. Sales maintained a high growth trend, and the company achieved sales of 1015 in 2018.63 ppm, an increase of 49 in ten years.51%, exceeding the 88 billion sales target in excess; the sales area was 983.40,000 square meters, an increase of 54 in ten years.73%.The company’s sales target for 2019 is 112 billion yuan, which is a steady increase compared with 2018 sales.In terms of repayment, the company’s sales repayment amounted to 815 trillion, and the annual plan was 101.88%, accounting for 80 of the sales scale.25%.Good sales receipts and financing have greatly improved the company’s cash flow situation and net cash flow from operating activities was 175.1.2 billion, continuing positive after 2017. Take the land prudently, the level of leverage has dropped.In 2018, the company acquired 89 land projects in more than 30 cities through bidding, auctioning, urban village renovation, old renovation, and equity acquisition. The planned equity construction area was 7.61 million square meters, a decrease of 31%.As of the end of 2018, the company’s total land reserve was 3613.540,000 square meters, which can meet the company’s development needs for about 3 years.In the context of tight financing and high land prices, the company chose to take the initiative to adopt the rhythm of land investment, which is a rational choice in the current market environment.As of the end of 2018, the company’s asset-liability ratio was 84.0%, excluding the advance account debts is only 45.8%, down by 0 compared with the same period last year.6, 3.With 9 averages, the leverage level is further reduced. Investment suggestion: Rongsheng develops rich soil reserves, speeds up land acquisition, and focuses resources on the Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta regions. The value ushers in a revaluation opportunity; the company’s rapid turnover, multiple brands, and cost control to ensure sales performance;+ Kanglv + Finance + X “is expected to further highlight the synergy of diversified business.We expect the company 重庆耍耍网 EPS to be 2 in 2019-2021.23, 2.86, 3.59 yuan, the corresponding PE is 5.18, 4.04, 3.22 times, maintain “Buy” rating. Risk reminders: industry sales fluctuations; policy adjustments leading to operational risks (shed reform, restructuring, budget policies, etc.); changes in the financing environment (mortgages, development loans, interest rate adjustments, etc.); corporate operational risks (personnel changes, construction, land acquisition, etc.)The risk of exchange rate fluctuations; the monetization of the shed reform is not up to expectations.