Huaxia Happiness (600340): Steady growth in performance and deepening cooperation with Ping An

Huaxia Happiness (600340): Steady growth in performance and deepening cooperation with Ping An

Steady growth in performance and high profit levels in the industry.

In the first half of 2019, the company achieved revenue of 387.

3% ten percent, an annual increase of 10.

7%, net profit attributable to mother 84.

80,000 yuan, an annual increase of 22.

4%, of which, the gross profit of the industrial new city business accounted for 54%.

The company’s initial gross margin and net profit attributable to its parent are 48, respectively.

7% and 21.

9%, an 北京夜生活网 increase of 2.

9 and 2.

1 unit.

As of the end of the reporting period, the company has gradually deployed nearly 80 industrial new cities in 15 core metropolitan areas across the country.

The proportion of foreign capital around Beijing has gradually increased, and there is no worries to complete the performance growth target.

In terms of revenue, the proportion outside Beijing was 21 from the same period last year.

7% increased to 38.

5% to 14.8 billion US dollars, a ten-year growth rate of 96.


In terms of sales, the area outside Beijing is expected to increase from 40% to 58% from the same period last year to 375.

600 million, a 10-year growth rate of 16.


According to the number of reports, the company ‘s land investment increased by 69% over the same period of the previous year, and the land acquisition area increased by more than 66%. The existing land resources will help the company’s sales in the second half of the year improve.

The company’s advance payment of US $ 1403 million guarantees future performance growth and helps the company achieve its performance commitments.

The repayment rate has increased significantly, and the financing advantage is fully reflected.

The report summarizes that the company realized operating cash inflows of approximately 40.8 billion yuan, and the recovery rate increased from 46% to 62% in the same period last year.

The company’s net cash flow from financing reached 317.

4 trillion, -97 compared with the same period last year.

$ 200 million improvement.

With the tightening of industry financing in the second half of the year, the company’s financing advantage is expected to become more prominent.

Cooperation with Ping An has been further deepened, and new modes of coordinated development have been continuously explored.

The company transferred the equity and debts of the project company to Ping An Life, and at the same time, it still provided the project with development and construction and post-completion operation management in the mode of export asset management.

In the first half of the year, the company was about 64 billion U.S. dollars, a year-on-year decline of about 20%.

3%, real estate sales fell 26.

7%), less than expected, we lowered the company’s profit forecast and expected EPS for 2019, 20 and 21 to be 4 respectively.

95, 6.

08 and 7.

78 yuan, the corresponding PE is 5 respectively.

3, 4.
3, 3.
4 times, the corresponding index rate is 5.

7%, 7% and 8.


Maintain company buy rating.

The company is currently less than 6 times PE and is at the bottom of history. Due to the tightening of industry policies, the industry estimates that the hub is down, giving the company 8 times PE in 2019 and lowering the company’s target price to 39.

6 yuan.

Risk warning: slow progress in investment promotion in production cities and weak real estate sales.