Vanke A (000002) Semi-annual Report Comment: Faster growth in performance and obvious financing advantages.

Event: The company released a semi-annual report and achieved operating income of 1,393 in the first half.

20,000 yuan, an 南宁桑拿 increase of 31 in ten years.

5%; realize net profit attributable to shareholders of listed companies.

40,000 yuan, an increase of 29 in ten years.

8%; real estate sales reached 3,340.

0 million yuan, an increase of 9 in ten years.

6%; net error factor is 35.

04%.

Opinion: Faster growth in performance and further improvement in profitability

In the first half of the year, the company achieved operating income of 1393.

2 ten percent, an increase of 31 per year.

5%; net profit attributable to mother to 118.

40,000 yuan, an increase of 29 in ten years.

8%.

Among them, the proportion of settlement income from real estate business was 95.

5%, settlement income 1329.

90,000 yuan, an annual increase of 32.

2%.

Profitability has been further improved.
Fully diluted net asset income in the first half of the year increased.

35%, an increase of 0 from the same period in 2018.

59 units; settlement gross margin for real estate business was 28.

3%, an increase of 1.
.

0 averages.

Sales are growing steadily, and the strongest is Hengqiang.

In the first half of 2019, the company gradually realized a contracted sales area of 2,150.

10,000 square meters, an annual increase of 5.

6%, the contracted sales amount is 3340.

0 ppm, an increase of 9 in ten years.

6%.

The company’s sales of development business in 41 cities ranked among the top three in the region.

The land is taken steadily, the first and second tier cities are deeply cultivated, and the total land reserve is rich.

1. Take the ground firmly.

In the first half of 2019, the proportion of land acquisition amount to sales amount was 30%.

2. The land is concentrated in first- and second-tier cities.

Calculated by construction area, 82.

0% of the newly added projects are located in first- and second-tier cities; calculated based on the amount of equity investment, 88.
4% are located in first- and second-tier cities.
3. Rich land reserves.

The total GFA of the company’s ongoing and planned projects is approximately 15,340.

20,000 square meters.

The total GFA of projects under construction is approximately 9,867.

60,000 square meters, the total construction area of the project is about 5,472.

60,000 square meters.

The financing advantage is obvious and the financial structure is stable.

The company’s net interest rate remained at a level.

At the end of the reporting period, the company’s net debt decreased by 35.

04%.

The debt structure is reasonable, and the amount of interest-bearing debt is RMB 2253.

2 trillion, of which interest-bearing debt for more than one year accounted for 70.

4%; from the perspective of financing objects, the proportion of bank loans was 59.

2%, the proportion of bonds payable is 25.

7%, other loans accounted for 15.

1%.

The company continued to maintain profitable financing costs with obvious financing advantages.

Among them, the company issued 2 billion housing lease special corporate bonds in February with a coupon rate of 3.

65% with a term of 5 years.

Investment suggestion: Vanke will focus on the core first-tier and second-tier cities, with rich soil reserves, and will continue to absorb core city fundamentals in the future.

The company’s leading level is stable, the financing advantage is obvious, the financial structure is stable, and the company’s investment value is optimistic in the medium and long term.

The company’s EPS for 2019-2020 is expected to be 3.

66 yuan, 4.

28 yuan, calculated based on the closing price on August 20, 2019, the corresponding PE is 7 respectively.

4 times, 6.

3x, maintain “Buy” rating.

Risk warning: Monetary policy is tightened significantly, and policy budgets are higher than expected and strict.