Tianjian Group (000090): High sales growth continues to benefit the construction of the Greater Bay Area

Tianjian Group (000090): High sales growth continues to benefit the construction of the Greater Bay Area

Investment highlights: The company announced its 2018 annual report and achieved revenue of 102.

1 billion, an annual increase of 51.

3%, net profit 7.

8 billion, an annual increase of 29.

9%, corresponding to EPS0.

54 yuan, slightly better than our expectations, the company plans to pay a cash dividend of 2 for every 10 shares.

5 yuan (including tax), it is planned to increase 3 shares for every 10 shares of capital reserve.

Ping An’s perspective: Achieving substantial improvement leads to a substantial increase in performance: reaching the company’s revenue 102.

1 billion, an annual increase of 51.

3%; realized net profit of 7.

8 billion, an annual increase of 29.

9%.

The main reasons for the increase in performance growth: 1) Due to the large-scale settlement of Shenzhen Tianjian Mansion, Nanning Spanish Town, Shanghai Tianjian Extraction Park, etc., the real estate business achieved revenue 43.

80,000 yuan, an increase of 92 in ten years.

9%; 2) Construction industry revenue increased 44% to 67.

300 million.

Looking ahead to 2019, projects with high gross margins such as Shenzhen Tianjian Tianjiao, Nanning Tianjian City and Changsha Tianjian City will gradually enter the settlement cycle, and performance is expected to continue to grow.

The overall sales were beautiful and the turnover efficiency was improved.

The company’s real estate business focuses on the seven major cities of Shenzhen, Guangzhou, Shanghai, Nanning, Changsha, Suzhou, and Huizhou, with a subscription amount of 59 in 2018.

5 trillion, the contract amount of 57.

800 million, realized sales area of 35.

50,000 square meters, an increase of 32 in ten years.

3%; Changsha Tianjian City and Nanning Tianjian City contributed the main sales force, with a total sales area of 74.

4%.

Sales rebate amount 52.

800 million, the sales 深圳桑拿网 recovery rate reached 91.

3%.

The company will launch Shenzhen Tianjian Tianjiao and Huizhou Sunshine Garden Phase II projects in 2019, and sales are expected to continue to grow.

The company benchmarked the benchmarking industry to advance the “3-9-12-24” project development cycle target, and the project development was fully accelerated. The Shenzhen Tianjian Mansion took only 6 months from capping to occupation, and the Shanghai Puhui Building was completed and inspected from conditions.It only took more than 20 days to complete the final inspection and acceptance filing, and the turnover significantly accelerated.

The construction structure of the building was upgraded, and property services grew steadily.

The performance of the company’s traditional building construction business door, the market scale is disorderly and fiercely competitive, and in recent years, it has gradually accelerated the transition and upgrade from construction advancement to general engineering contractors (EPC).

Initially undertook more than 40 projects of PPP, EPC, contract construction, general contracting and other categories, with a contract value of 9.1 billion; 67 projects under construction at the end of the period, and a contract cost of 185.

80,000 yuan, an increase of 29 over the same period last year.

8% is the basis for revenue growth.

Pioneer City Services achieved revenue 13.

600 million, accounting for 10% of total revenue.

9%; of which the property business achieved revenue of 5.

9.6 billion, an increase of 13 in ten years.7%, property leasing realized revenue 2.

51 ppm, a 10-year increase2.

8%.

Continue to promote shed reform business and contribute stable income to performance growth.

Initially, the company continued to push forward the reconstruction project of the second-line Luohu second-line flower arrangement shantytown, and two areas have entered the stage of comprehensive construction.

In 2018, it has contributed revenue from shed reform project management services4.

900 million, accounting for 4% of total revenue.

The company continues to consolidate the professionalism of shantytown reform services, especially to solve the early-stage hard work of shantytown renovation projects, and provides alternative, replicable, and popularized practical experience for the shantytown transformation of Shenzhen. It is expected to continue to contribute to the future.

Investment suggestion: As the main contribution to the performance of 2019-2020 is Tianjian Tianjiao’s sales and carry-over rhythm, it is expected that the profit forecast for 2019-2020 will be adjusted slightly, and the company’s EPS for 2019 and 2020 is expected to be 0.

83 (+0.

09) Yuan and 1.

07 (-0.

22) yuan, the current sustainable corresponding PE is 8 respectively.

9 times and 6.

9 times.

The company is a rare small-cap market high-performance housing company with high market performance. It is expected to usher in a double explosion in sales performance from 2019 to 2020, and more than 40% of its land reserve is located in the Guangdong-Hong Kong-Macao Greater Bay Area, which is conducive to the construction and maintenance of the Guangdong-Hong Kong-Macao Greater Bay Area. “Recommended “rating.

Risk reminders: 1) At present, the third and fourth tier property markets have entered the adjustment channel. The overshooting of the property market in the first half of 2019 has caused no delay in policy; 2) Low industry barriers in the construction industry, fierce competition and rising raw material pricesThe shortage of labor supply and the rapid rise in labor costs have created pressures for companies to overcome; 3) The planning adjustment and demolition schedules of the company’s urban renewal projects are complicated and uncontrollable, which may cause delays in project development plans or shed improvements, and related costs.Increased risks.