Jinke Co., Ltd. (000656): Growth potential is as high as horses and flats

Jinke Co., Ltd. (000656): Growth potential is as high as horses and flats
Carry-on speedup, bright performance.The company achieved operating income of 2.61 million yuan in the first half of 2019, a year-on-year increase of 67.9%; net profit attributable to mother is 25.90,000 yuan, an increase of 288 in ten years.5%.  The initial growth rate of net profit attributable to motherhood is much higher than the growth rate of operating income.As of the end of the reporting period, approximately US $ 49.6 billion of the company’s housing advances account is expected to be completed in the second half of this year, accounting for 1.3 times, strong long-term performance lock-in.  The main business of real estate is as follows, and the future is expected to be as follows: 1. Speed up sales and increase efficiency to achieve leapfrog development.In the first half of 2019, the company achieved contracted sales of 81.4 billion, a year-on-year increase of 36%, and has achieved 54% of the target of 150 billion in 2019.2. Land acquisition is actively expanding, with abundant saleable reserves.In the first half of 2019, the company replenished 15.3 million square meters of land reserves, taking up 182% of the sales area.As of the end of June, the cumulative saleable area exceeded 56 million square meters, and the continuous supply of high-quality soil storage provided a reasonable foundation for the company’s stable development in the future.”Real estate + service” two-wheel drive: 1, property management services.As of the end of June, the contract management area of the property platform Jinke Service expired reached 2.3.9 billion square meters, exceeding Jinke’s development area, has considerable independent development strength.2. Investment and operation of technology industry.As of the end of 2018, Jinke Industry has completed the investment layout of the “Eight City and Twelve Parks”, and achieved contracted revenue of about 10 billion yuan in 2018.  ”Fair incentive + follow-up investment mechanism + employee shareholding” At the same time, a three-dimensional incentive mechanism was established.The company uses “high incentives” as its driving engine, implements performance stock incentive plans, launches a 西安耍耍网 “win-win cooperation plan” that focuses on employee follow-up investment, a “win-win cooperation plan” that focuses on excess profit rewards, and employee shareholdingEquity as the core “Excellence and Win-win Plan”, improve short-, medium- and long-term incentive mechanisms, and provide internal strategic guarantees for the realization of the 200 billion target.  Controllable resistance and improved profitability.At the end of June 2019, the company’s net debt was supplemented by 147.5%, short-term debt pressure is 0.94, basically the same as in 17 and 18 years.Financing costs have been increased from 9 in 2015.5% fell to 5 in the first half of 2019.7%.In 2018, CCX raised the main credit rating of Jinke to AAA, and the company’s credit remained stable.In addition, the company’s ROE transition trend was reversed in 2017 and rose to 19 都市夜网 in 2018.5%.  Investment rating and risk reminder: The company’s high-growth merger with high dividends attributes highlights its allocation value.It is expected that the EPS for 2019-2020 will be 1.01 yuan, 1.32 yuan, corresponding to PE is 6.1x, 4.6 times, give “Buy” rating.Consideration should be given to the risks of excessive concentration in the single market business, continuous improvement in the real estate industry, and poor performance in carrying forward expectations.