Sunshine City (000671): Outstanding performance and continuous financial improvement

Sunshine City (000671): Outstanding performance and continuous financial improvement
I. Event Overview Sunshine City announced its semi-annual results announcement. The company achieved operating income of 225 in the first half of 2019.1 ppm, an increase of 48 in ten years.0%; achieve net profit of return to mother 14.50,000 yuan, an increase of 40 in ten years.天津夜网5%.  Second, the performance of analysis and judgment continued to increase rapidly, and profitability increased steadily in the first half of 2019. The company achieved operating income of 225.1 ppm, an increase of 48 in ten years.0%; achieve net profit of return to mother 14.50,000 yuan, an increase of 40 in ten years.5%, performance is in line with expectations.In the total number of reports, the company’s real estate project gross margin reached 26.93%, an increase of 1 over the end of the previous year.28pct, with a revised return on equity of 6.91%, an increase of 1 over the same period last year.72pct, profitability continued to rise.  Sales kept funds, and the company with rich soil storage resources achieved sales of 900 from January to June.70,000 yuan, an increase of 28 in ten years.7%, of which, the Yangtze River 西安耍耍网 Delta, Greater Fujian, the Pearl River Delta and the Beijing-Tianjin-Hebei region contributed 36% of the overall sales.4%, 17.9%, 9% and 2.9%.At the end of the reporting period, the company’s gradual land storage area was 4,396.40,000 square meters, which is 3 in 2018.5 times, it can ensure the sustainable development in the next 2-3 years; on average, the saleable value of the first and second-tier cities accounts for 85.9%, the cumulative cost of land price is about 4322.Compared with the current average selling price of RMB 12,829 / sqm, the company’s profit quality continues to improve.  Resistance optimization, cost reduction ended until the end of June 2019, the company refused to pay 1121 with interest.21 trillion, including short-term interest-bearing debt of 341.610,000 yuan, the proportion of ownership interest rate decreased by 12 compared with the end of last year.34 points to 30.47%, compared with 52 at the end of last year.57% dropped to 31.00%, denying continuous optimization of the structure.At the end of the reporting period, the company’s comprehensive financing cost was 7.72%, a decrease of 0 from the end of 18.22pct, cost control is good.  Third, investment recommendations Sunshine City’s performance will grow rapidly, with beautiful sales data, sufficient soil storage resources, stable financials, and controllable overall risks. The company’s EPS is expected to be 1 in 19-21.05/1.42/1.83 yuan, the corresponding PE is 6.3/4.6/3.6 times, the highest in the past three years, the lowest, the median PE is 27.7/6.9/17.6 times, maintain the company’s “recommended” rating.  4. Risk warning: The real estate budget policy is tightened, and sales are below expectations.