Lujiazui (600663): Steady Achievement One Core, Two Wings, Three Cities Layout Formation

Lujiazui (600663): Steady Achievement “One Core, Two Wings, Three Cities” Layout Formation
Investment Highlights: Events.The company announced its semi-annual report for 2019.At the core of the report, the company achieved operating income of 81.89 ppm, an increase of 23 per year.86%; Net profit attributable to shareholders of listed companies.47 ppm, an increase of 11 per year.34%; Realize basic profit income of 0.51 yuan. In the first half of 2019, driven by the carry-over of property sales and increased income from the financial industry, the company’s revenue increased23.86%; during the same period, the company’s investment income decreased and the net net profit growth narrowed to 11.34%.According to the company’s 2019 semi-annual report, (1) in the first half of 2019, the company’s long-term operating property rental income (cash inflows) within the scope of the company’s consolidated statement, totaling 19.4.7 billion.Among them, in terms of office properties, the rental income for the first half of 2019 was 15.980,000 yuan, a year-on-year increase of 5%; for commercial properties, the rental income in the first half of 2019 was 1.9.9 billion, an increase of 66% in ten years.(2) In the first half of 2019, the company realized the total sales income and cash flow of various properties.9.3 billion.(3) In the first half of 2019, the company achieved 7 within the scope of consolidated statements.50,000 yuan in property management income (cash inflows), an increase of 21 over the same period in 2018.56%.(4) In the first half of 2019, the company’s financial business realized revenue10.20 ppm, accounting for 12 of the company’s total operating income.44%.According to the company’s 2019 semi-annual report, in the first half of 2019, the company completed 3 projects with a total construction area of 15.880,000 square meters.There are 2 newly started projects with a total construction area of 13.670,000 square meters.8 construction 杭州桑拿网 projects continued, with a total construction area of 95.630,000 square meters.Interest balance on June 30, 2019 was 354.930,000 yuan, accounting for 42 of the company’s total assets in the first half of 2019.2%, compared with 295 at the end of the previous year.7.8 billion increased by 20%. Investment Advice.”Commercial real estate + commercial retail + financial services” integrated development, “continuous market” rating.The company actively builds a “one core, two wings and three cities” development pattern with “commercial real estate as the core, commercial retail and financial services as the two wings, and Pudong, Tianjin and Suzhou as the three cities”.According to the company’s 2019 semi-annual report, the company’s operating property area was 2.64 million square meters.We believe that the transformation of Shanghai’s construction of the international financial center has pushed forward the value of property held by the company, and the leasing rate and rent have continued to rise.After completing the acquisition of 100% equity in Lu Jinfa, the company obtained 3 licensed financial institutions.According to the company’s latest total share capital of 40.Measured at 3.4 billion shares (the company’s total share capital in 2018 was 33.6.2 billion shares. After the implementation of the 2018 profit distribution, the total share capital at the end of June 2019 was 40.3.4 billion shares), we expect the company’s EPS in 2019 and 2020 to be 0.98 yuan and 1.12 yuan, giving the company 17-21 times dynamic PE in 2019, corresponding to a reasonable value range of 16.66-20.58 yuan, giving the company a “primary market” rating. Risk Warning: The company faces interest rate hikes and policy risks, as well as financial market risks.