Haiyin (000861): Steady business growth Financial business and period expenses dragged down 2018 results
2018 results are lower than expected Haiyin’s 2018 results: operating income 25.
0.7 billion, downgraded by 2 every year.
1%; net profit attributable to mother 1.
3.8 billion, down 40 a decade ago.
1%, net of non-attributed net profit1.
09 million yuan, down 44 years ago.
3%, corresponding profit 0.
05 yuan / share, lower than expected.
Among them, Q1-Q4 revenue increased by +28 each year.
6% / + 31.
0% / + 11.
9%, net profit increased by +0 each year.
5% / + 22.
9% / + 15.
9%, the financial business development was less than expected, the increase in expenses during the period and the accrual of long-term equity investment dragged down net profit.
Development trend 1. Business is growing steadily. Financial business has dragged down revenue for 18 years. Real estate business is expected to usher in the settlement period in 19 years.
Short-term downgrade of company revenue in 20182.
1%, of which the business sector / real estate / department store industry / financial sector / hotel revenue accounted for 40%.
0% / 30.
1% / 21.
5% / 6.
5% / 2.
0%, 2018 revenue growth in ten years2.
0% / 6.
4% / 6.
Specifically: 1) Commercial business: The company’s Haiyin Another City project has been steadily expanding in different locations. In 2019, Zhuhai, Shanghai and other projects will attract investment and operations, and it is expected to increase the operating area by 170,000 square meters. At the same time, in November 2018, it reached a cooperation with Shanghai SongjunThe agreement will be responsible for Huijin City in the form of brand and management output2.
The operation of 40,000 square meters of commercial investment is expected to continue a steady growth in business revenue in 2019; 2) Property business: Commercial and residential quarters in Sihui City and Shanghai Commercial City Commercial Housing have been approved for pre-sale in the second half of 20184.
10,000 pings, which brought an increase in revenue in 19 years; 3) Financial sector: The acquisition business was affected by the strengthening of financial supervision, and the maintenance fee income decreased significantly, but 成都桑拿网 the scale of small and micro loan business increased.
2. The expense ratio increased significantly, dragging down net profit.
The company’s gross profit margin increased by 0 in 2018.
01ppt as of 38.
55%, maintaining stability, but the net interest rate has been decreasing year by year due to the increase in expense ratios and the accrual of long-term equity investment losses3.
5ppt to 5.5%, of which sales / management / R & D / financial expense ratio doubled -1.
1ppt / + 1.
7ppt / + 0.
0ppt / + 3.
0ppt to 3.
7% / 11.
1% / 0.
4% / 9.
The 5% increase in financial expenses was due to the repayment of 17-year financing projects and the increase in interest rates on new loans.
3. Pay attention to the progress of the company’s real estate settlement in 2019 and reduce costs and increase efficiency.
1) Real estate development and settlement: As of the end of 18 years, the company’s main development projects have 126 construction areas to be developed.
80,000 square meters, of which 87 are residential.
7%, the progress of real estate project settlement affects the company’s performance; 2) Cost reduction and efficiency improvement: In 18 years, the company has strived to create an online platform for “Hainyin Life” to improve the accuracy of operations and at the same time promote staff optimization.
220,000 yuan in manpower and operating expenses, the expense rate is expected to usher in improvement.
The profit forecast is based on the intensified competition in the retail industry, and the 19 / 20E profit forecast is lowered by 18% / 16% to 0.
11 yuan / share.
Estimates and recommendations are currently expected to correspond to 27 / 24X P / E in 19/20, maintaining the recommended level.
Adjust target price by 5% to 3 according to profit forecast adjustment.
4 yuan, corresponding to 19/20 34 / 31X P / E, up 23%.
Risks Intensified competition in the retail department store industry; the downturn in the real estate market.