China Fortune Land Development’s sales in the first half of the year exceeded 80 billion yuan, and its net profit increased by nearly 30% year-on-year.

On the evening of the 28th, China Fortune Land Development (600340.SH) released its performance report for the first half of 2018. The report shows that in the first half of 2018, China Fortune Land Development achieved operating income of 34.974 billion yuan, a year-on-year increase of 57.13%; net profit attributable to shareholders of listed companies was 6.927 billion yuan, a year-on-year increase of 29.05%. During the reporting period, the company achieved sales of 80.504 billion yuan, a year-on-year increase of 15.63%. The business of the new industrial city is impressive and has become a new development driver in the future.

In the first half of 2018, China Fortune Land Development achieved sales of 80.504 billion yuan, a year-on-year increase of 15.63%. Among them, the contracted sales volume of the real estate business is approximately 63.8 billion yuan, accounting for approximately 79%; the settlement income of the Industrial New City Business Park is approximately 15.1 billion yuan, accounting for approximately 19%; the sales volume of other businesses (property, hotel) is approximately 15% billion, accounting for about 2%. A research report released by Sichuan Finance Securities commented that China Fortune Land Development's sales are stable and its off-site replication has achieved remarkable results. A reporter from People's Daily noted that according to CRIC statistics, China Land Development ranks 8th in the industry in terms of equity sales.

Institutional views believe that while China Fortune Land Development maintains solid sales, its replicable off-site project promotion model will also become the main driving force for China Fortune Land Development's stamina. The performance report disclosed that China Fortune Land Development has signed ***10 new PPP project cooperation agreements, of which 8 are industrial new city projects and 2 are industrial town projects, all of which are located in non-Beijing-Tianjin-Hebei regions. The non-Beijing-Tianjin-Hebei region core business sales accounted for 38.63%, an increase of 25 percentage points from the same period last year.

There were 288 new enterprises entering the park outside the Beijing-Tianjin-Hebei region, accounting for 64.72% of the total; the newly signed investment amount reached 74.50 billion yuan, accounting for 77.15% of the total.

In February 2018, Hubei Tuanfeng Industrial New City, Zhejiang Nanxun Industrial New City, and Henan Xinzheng New Industrial City developed by China Land Development were selected into the fourth batch of PPP demonstration projects by the Ministry of Finance. The PPP model of China Land Development Industrial New City was recognized again . This is why China Fortune Land Development, after the Nanjing and Hangzhou regions, has become a new off-site replication performance growth pole.

China Fortune Land Development’s profitability continues to increase, supporting the steady development of its business. This report shows that in the first half of 2018, China Fortune Land Development's operating income was approximately 34.974 billion yuan, a year-on-year increase of approximately 57.13%; the net profit attributable to the parent company was approximately 6.927 billion yuan, a year-on-year increase of approximately 29.05%; the net profit margin was approximately 19.85%.

Relying on its stable operations and the excellence of its business model, China Fortune Land Development has formed smooth and diversified financing channels and has strong financing capabilities. In the first half of the year, China Fortune Land Development also actively expanded its financing channels to ensure its continued high-quality development.

The performance report disclosed that in the first half of the year, China Fortune Land Development successfully issued 8.4 billion yuan of corporate bonds, 2.5 billion yuan of ultra-short-term financing bills, and 200 million US dollars of overseas debt, and maintained long-term cooperative relationships with banks and other financial institutions, with credit lines Sufficient and stable loan interest rates. China Fortune Land Development's overall average financing cost in the first half of the year was approximately 6.14%, of which the average interest cost of bank loans was 5.99%, the average cost of bonds was 5.95%, and the average interest cost of other financing such as trusts and asset management was 6.83%.

According to a research report released by Changjiang Securities, China Fortune Land Development’s financing costs increased by approximately 0.16 percentage points compared with 2017 and remain at a controllable level. China Fortune Land Development's debt level is generally stable. The cash on hand is sufficient to cover maturing debts. The asset-liability ratio is approximately 82.10%. The real liability ratio after deducting advances from accounts is approximately 45.08%. The net debt ratio is approximately 99.85%. The monetary fund coverage ratio is approximately 82.10%. About 170%.

Data show that in the first half of 2018, the total group credit line obtained by the company through merger was 356.5 billion yuan, of which approximately 63.268 billion yuan of credit line has been used.

On July 10, China Fortune Land Development’s controlling shareholder reached an equity transfer agreement with Ping An Asset Management, agreeing to transfer approximately 582 million shares (accounting for approximately 19.70% of the company’s total share capital) to Ping An Asset Management through agreement transfer. , the transfer price is 23.655 yuan/share, and the controlling shareholder promises that the performance growth rate from 2018 to 2020 will not be less than 30%, 65% and 105% (based on 2017 performance), corresponding to a three-year compound growth rate of more than 27%. On August 10, all parties signed a supplementary agreement, and Ping An Life was the actual transferee of this equity transfer. Ping An Life's investment also demonstrates its confidence in future development.

At present, China Fortune Land Development Co., Ltd. has obtained "AAA" subject credit ratings from many top domestic rating companies such as China Chengxin, United, and Oriental Jincheng. During the reporting period, the company also received a "BB+" independent corporate rating from Fitch, an international credit rating agency, with a stable outlook.

A reporter from People's Daily learned that Changjiang Securities, Bank of China International, and Sichuan Securities gave China Fortune Land Development an "overweight" rating, Founder Securities gave it a "strong recommendation" rating, and Northeast Securities gave it a "buy" rating. Rating.

In addition, China Fortune Land Development specifically proposed in the report that it will actively integrate resources, take leading enterprises as the guide, and create high-end industrial clusters for the region with high technological content and strong demonstration drive according to local conditions. Faurecia (Shenyang) Automotive Parts Systems Co., Ltd. and other Fortune 500 companies, as well as Mianyang Huachen Ruian Automotive Parts Co., Ltd., Shenyang Changjiangyuan Technology Development Co., Ltd., BRAND FIELD LIMITED, Shanghai Shanfu Plastic Products Co., Ltd., and Hangzhou Hengli Manufacturing Technology Co., Ltd. and other large-scale leading enterprises have entered the park to sign contracts one after another. Leading enterprises will promote the clustering of upstream and downstream enterprises in the industrial chain and expand regional industrial influence.