Lujiazui (600663): Joining the overweight mechanism is mature or there are factors to consider prudent consideration

Lujiazui (600663): Joining the overweight mechanism is mature or there are factors to consider prudent consideration
In the first quarter, the company’s revenue was + 197%, and its net profit was + 27%. In the first quarter of 杭州夜网论坛 2019, it realized revenue of 38.5.4 billion, net profit attributable to mother 8.7.2 billion, +197 each year.3% and +27.2%.The surge in revenue was mainly due to the carry-over of office building 22, Pudong Finance Plaza.4 million US dollars, the net profit growth rate is lower than the revenue growth rate is due to the recognition of investment income in the first quarter of 2018.100 million yuan.The Qiantan project is expected to carry forward in 2019 and drive the gross profit margin to increase.  The progress of the Suzhou project may be short-term, and the growth of the leasing sector is picking up. Pending litigation disputes are carefully considered in the first quarter of 2019.430,000 square meters, the contract amount is 2.600 million, a low base of + 1047% and + 897% in the next decade.Sales in the first quarter mainly came from the second phase of Tianjin Maritime Garden (accounting for 27%), demolition of Oriental Yipin in Shanghai’s Qiantan (22%) and destocking of Shanghai’s stock (51%).In 19, the estimated saleable resources are mainly concentrated in Tianjin and Suzhou. Due to the impact of Suzhou Super’s expected real estate transformation, the development progress of Suzhou project is expected.  Rental income for the first quarter10.17 billion +13.5%, quarterly growth rate rebounded significantly.At present, the occupancy rate has stabilized at a low level, and the average rent has increased steadily. It has successfully deployed the Qiantan emerging business district, which can effectively diversify the risks of core business differentiation.The current total of Aijian Securities involves pending lawsuits, including debt defaults of Rich Bird and Shin Kong Group, involving amounts of 476.76 million yuan and 22.34 million yuan, respectively.For the sake of prudence, we replaced the impact of the two lawsuits in the performance forecast.  The bond issuance interest rate has gradually increased, and the long-term credit rating of a company with a mature mechanism for merging and holding company stocks is AAA, and the latest coupon rate of corporate bonds has gradually decreased to 3.88%, financing advantages continue to highlight.In June 2019, some executives and core team members of the company increased their holdings of the company’s A-shares by a total of 286,500 shares in 2018, which accounted for 0 of the company’s total share capital.0071%, starting from 2016, the company has formed a stable mechanism to increase annual holdings of the company’s stocks with annual excess rewards.  12-month target price of 17.30 yuan, downgraded to “overweight” rating. Considering that the scale of Suzhou area is higher than expected, the company ‘s Suzhou project development progress may 杭州桑拿 be affected by interference; and Aijian Securities is involved in pending lawsuits. Due to the principle of caution, we willImpact performance considerations.In summary, we have reduced the company’s 2019-2021 EPS forecast (diluted) to 0.91, 1.02, 1.16 yuan (was 1).00, 1.17.1.36 yuan (diluted)).The current sustainable corresponding PE for 2019-2021 is 16.9, 15.1, 13.3 times.Maintain 19x PE in 2019, corresponding to a target price of 17.30 yuan, downgraded to “overweight” level.  Risks indicate that the company’s push progress may be less than expected; there are certain uncertainties in pending lawsuits.