Zhongnan Construction (000961): Steady sales growth and orderly investment

The event company announced the sales and land acquisition in July.

The sales amount in July was 147.

400 million, 111.

80,000 countries, a five-year growth of 5.

0%, 10.


  Core point 1?

Cumulative sales growth in July increased by 21.


The company went public in July 147.

400 million, an increase of 5 previously.

0%, 1?
Cumulative 佛山桑拿网 initial in July reached 959.

200 million, an increase of 21 previously.

0%, to complete 48% of the plan for the US $ 200 billion in 2019. Based on the 4: 6 sales rhythm used by real estate companies, the company is steadily moving towards the goal of US $ 200 billion.

  1?The gradual investment intensity in July was 34.


The company’s land acquisition amount in July was 57.

100 million, with an area of 108.

20,000 square meters, the average floor price is 5284 yuan / square meter.

Six new projects were added in July, of which three were in second-tier cities and three were in third- and fourth-tier cities.

Company 1?
The cumulative amount of land acquired in July was 326.

2 trillion, gradually take the area of 531.

60,000 square meters, with an average floor price of 6,136 yuan / square meter.

Company 1?
The cumulative investment intensity in July was 34.

0% (cumulative land acquisition amount / cumulative sales amount), which is approximately 41 in 2018.

0% investment intensity decreased by 7 units.

  Financial forecast and investment recommendation Maintain BUY rating and target price.

00 yuan.

We forecast the company EPS to be 1 in 2019-2021.



33 yuan.

We expect the company’s performance growth in the next three years to be higher than the industry leader and second-tier developers 淡水桑拿网 of the same size. Therefore, the company is given an estimated premium of 30%. Based on the PE estimates of 8X in 2019 for comparable companies, the PE estimates for 10X in 2019And maintain target price of 11.

00 yuan.  Risks suggest that real estate sales are growing less than expected.

  The financing environment has deteriorated extremely.

  Causes the company’s capital chain to break.