China Merchants Shekou (001979) April 2019 Sales Review: Faster sales growth, planning for listing of property management business

China Merchants Shekou (001979) April 2019 Sales Review: Faster sales growth, planning for listing of property management business

Highlights of the report Event description From January to April 2019, the company gradually realized a contracted sales area of 280.

340,000 square meters, an increase of 33 a year.

36%; the contracted sales amount of 558 is gradually realized.

27 ppm, an increase of 33 per year.

86%.

Incident review sales are growing faster and the momentum is expected to continue.

In April 2019, the company achieved a contracted sales area of 91.

420,000 square meters, an increase of 48 every year.

99%; Achieved contracted sales of 179.

32 ppm, an increase of 72 per year.

49%.

From January to April 2019, the company 淡水桑拿网 gradually realized a contracted sales area of 280.

340,000 square meters, an increase of 33 every year.

36%; the contracted sales amount of 558 is gradually realized.

27 ppm, an increase of 33 per year.

86%, the sales end achieved rapid growth.

The company benefited from the warming trend of the first- and second-tier real estate markets, and sales are expected to continue to grow.

The intensity of land acquisition has increased significantly, and the remaining soil reserves support future development.

In April 2019, the company added 10 new projects in Dongguan, Shenzhen, Suzhou, Changshu, and Hong Kong, taking land to build about 141.

790,000 square meters, the total price is about 144.

At 1.8 billion, the land acquisition and the total price are more than the total of the first quarter of 2019, and the land acquisition intensity has increased significantly.

From January to April 2019, the company has accumulated about 242 land acquisitions.

600,000 square meters, the total land price is about 253.

41 trillion, the average land price is 10446 yuan / square meter, and the average land price / cumulative average sales price is 52.

45%, about 1 to March decline.

56 foreign countries maintained control over land acquisition costs.

Actively integrate soil storage resources and plan for the listing of property management business.

In April 2019, the company announced that China Merchants Shekou Haikou Development Co., Ltd., a wholly-owned subsidiary, plans to subscribe for the new investment in Sinotrans Hainan2.

After the completion of the capital increase, Haikou Company holds 70% of Sinotrans Hainan’s equity, which is conducive to further improving its strategic layout in Hainan. The company’s Qianhai land consolidation has continued to advance, and has now signed a”Contract of Use Right Transfer”.

In addition, the company intends to acquire AVIC Sunda 22.

35% of shares, and plans to allocate 100% of China Merchants Property to subscribe for non-publicly issued shares of AVIC Sunda to promote the listing platform to enhance the comprehensive competitiveness of property management business.

Investment suggestion: Continuous release of rich resources, steady growth in operating results, and maintain a “Buy” rating.

The sales performance of the company is outstanding, and the remaining soil reserves support the development of the performance. The company deeply cultivates the Guangdong-Hong Kong-Macao Greater Bay Area and actively integrates the soil storage resources.

It is estimated that in 2019 and 2020, the EPS will be about 2.

40 yuan, 2.

97 yuan, corresponding to the current sustainable PE is 8 respectively.

8 times, 7.

1x, maintain “Buy” rating. Risk Warning: 1.

The liquidity environment may be uncertain, or it may affect the company’s sales or financing end; 2.

The adjustment policy of the real estate business may have uncertainties or have an impact on the company’s operations.