Binjiang Group (002244): Another way to overtake the curve

Binjiang Group (002244): Another way to overtake the curve

We 四川耍耍网 believe that unless the industry cycle is gradually decreasing and the leading real estate companies have increased their concentration, the intensive cultivation of the regional real estate company Binjiang Group has cost advantages and brand premium capabilities, which translates external industry threats faced by other real estate companies intoOwn development opportunities to achieve unexpected growth in buildings and performance.

  The investment point is expected to be poor: under the trend of nationalization, focus on strategy and find a new way to achieve high-growth market expectations. The industry can only achieve rapid expansion through a nationalization strategy.

  We believe that since 2018, the Binjiang Group has adjusted its strategic positioning and focused on Zhejiang. By continuously improving the degree of product standardization, it has continuously exerted its comparative advantage in the regional market to achieve rapid sales growth and counter-cyclical performance growth.

  Sales exceeded expectations: Tianshililirenhe, the three factors added to the company’s curve overtaking Tianshi: Hangzhou land double-sale, rough expansion of housing companies fade out of the market.

  Geography: The business strategy focuses on Zhejiang, and the small-scale control scale builds cost barriers.

  Renhe: Quality reputation and sentiment, Binjiang’s product sales are fast premium.

  Performance exceeded expectations: Double turnover leverage doubled, ROE bottomed out and entered an upturn. The growth of project settlement projects completed after 2019 continued to increase the turnover rate. At the same time, the level of 2018 continued to expand, and the turnover rate was greatly enlarged.Effect, the ROE level will quickly step into the boom upward cycle.

  Profit forecast and investment advice: We expect the company to achieve operating income of 203 from 2019 to 2021.

5.7 billion, 274.

3.9 billion, 375.

54 billion; net profit attributable to parent company19.

2.3 billion, 28.

36 billion, 38.

4.4 billion, an increase of 58%, 47% and 36% over the same period; under current equity, EPS is expected to be zero from 2019 to 2021.

62, 0.

91 and 1.

24. At present, it corresponds to PE6.

55 times, 4.

44 times and 3.

28 times.

  The Shenwan Real Estate Index is currently at PE8.

56 times transaction. Considering that the company is in the process of continuous improvement of fundamentals, ROE continues to pick up and achieves continuous release of performance. It is upgraded to “Buy” rating.

  Risk Warning: 1.

Land costs in Zhejiang Province have risen more than expected; 2.

Formulate policies to tighten more than expected.