New City Holdings (601155): Sales exceeded expectations and increased investment increased first and second line layout

New City Holdings (601155): Sales exceeded expectations and increased investment increased first and second line layout

The event company released its February 2019 business briefing: the company achieved sales of about 127 in February.

01 billion, an annual increase of 45.

15%; sales area is about 121.

750,000 square meters, an increase of 63 in ten years.

twenty three%.

The company gets 26 in a single month.

500 million, a year-on-year decrease of 29%; the land area is 75.

70,000 square meters, a reduction of 57 per year.

4%.

Opinion sales growth continued to accelerate.

The company achieved sales of approximately 127 in February 2019.

10,000 yuan, an increase of 45 in ten 返回码: 500 网站打不开?重查 years.

15%, an increase of 39 units over the previous value; the sales area was about 121.

750,000 square meters, an increase of 63 in ten years.

23%; the average selling price is 10432 yuan / square meter, a decrease of 11% each year.

Although the company’s third- and fourth-tier cities are located in cities, they are mostly concentrated in the Yangtze River Delta region with better fundamentals.

The company’s scale of construction started in 2018, and the future supply rhythm is guaranteed. The company’s sales in 2019 can still maintain rapid growth.

The investment scale remained stable in February.

The new city acquired 4 new projects in Tianjin and 2 cities in Shangrao, Jiangxi in February, adding 26 new land acquisitions.

500 million, a year-on-year decrease of 29%; the land area is 75.

70,000 square meters, a 57% reduction each year, and the land sales ratio in a single month is only 21%.

The company strictly controls the floor cost, and the average monthly land price is only 3499 yuan / square meter, which effectively protects the company’s future gross profit margin.

From the perspective of the land-taking cities, under the strategic adjustment of “returning to the first and second tiers”, the proportion of projects in first and second tier cities has gradually increased.

The occupancy rate of Wuyue Plaza remained high, and rental and management fee income grew at a considerable rate.

As of the end of 2018, the company leased a total of 42 Wuyue Plazas. After adding an office building, the occupancy rate remained high, with an average of 98.

81%; total leased area reaches 245.

130,000 square meters, an increase of 72% in ten years; annual rental and management fee income21.

640,000 yuan, an increase of 103% in ten years.

Investment suggestion: New City Holdings adheres to the “dwelling + business” two-wheel drive model. The company takes the Yangtze River Delta as its core and completes the layout of key national urban agglomerations.

The company’s scale of sales continued to expand, with sufficient land reserves.

We expect the company’s EPS to reach 4 in 2018-2020.

38, 5.

33, 6.

60 yuan, the corresponding PE is 7 respectively.

90, 6.

50, 5.

24x, 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.