Gemdale Group (600383): Scale up and expand further
The event company announced the sales of December 2019, the launch of January-February 2020 and the acquisition of projects.The contracted area reached 183 in a single month in December.10,000 countries, an increase of 11 a year.2%, 355 ppm of contracted value, an increase of 24.0%; It is planned to launch or add more than 22 projects in 13 cities including Kunming, Shanghai and Nanjing from January to February 2020.  Brief comment on the sales force in December, helping to scale up to 210 billion.From January to December, the company realized a gradual contractual amount of 210.6 billion yuan, an increase of 29.7%; cumulative contracted area of 10.79 million square meters, an increase of 22.9%.Among them, the company’s sales performance in December was good, with a single month of sales of 35.5 billion US dollars, an increase of 24.0%, an increase of 103% from the previous quarter.The initial average selling price was 19,518 yuan / level, an increase of 5 over last year.5%.Looking forward to 2020, thanks to the company’s good project layout structure and excess value reserve, the company is committed to maintaining positive growth and continuing to outperform the industry under the background that the overall scale of the industry remains basically unchanged.  The land acquisition is still positive, and the layout is good.In December, the company acquired 8 plots of land in Harbin, Chengdu, Nanjing and other cities, continuing its investment strategy focusing on first- and second-tier core cities.  The company has gradually supplemented the planned construction area 1313 gradually.20,000 square meters, an increase of 47 in ten years.8%, corresponding to the total price of 886.8 ppm, a six-year increase of 6.7%, compared with the more soothing rhythm of land acquisition in 2018, the company’s land investment is extra active this year.The proportion of land acquisition amount to sales amount was 35%, which decreased by 17% by the end of 2018. The proportion of land acquisition amount to sales growth increased in the current period, but the increase in the proportion of land acquisition amount to sales amount was mainly due to the decrease in land acquisition cost during the yearThe year’s 5122 yuan / ping replaces the 3463 yuan / ping in 2019.As of the end of the third quarter of 2019, the company’s total land reserve was close to 50 million, of which 80% were in first- and second-tier cities, which ensured the company’s development needs in the next 3-4 years.  Maintain BUY rating and raise TP to 17.99 yuan.The company’s EPS for 2019-2021 is expected to be 2.14/2.57/3.11 yuan, corresponding to 4 PE in 2020.7 times.Give the company a 7X estimate and raise its target 南京夜网 price to 17.99 yuan.