Zhongnan Construction (000961): Voluntary increase of senior executives shows development confidence
Event Overview Zhongnan Construction issued an announcement saying that some senior executives of the company voluntarily promised not to exceed 9.
5 yuan / share of the company’s shareholding does not exceed 50 million yuan.
Executives increase their holdings and stick to the value On February 24, 2020, some industrial headquarters and regional managers of Zhongnan Construction voluntarily promised to trade from February 25 to May 24, at a price not exceeding 9.
5 yuan / share, increase the company’s shares through public means such as centralized bidding within the limit of 5,000 million investment.
This shareholding plan is based on the company’s senior management’s recognition of the company’s value and has confidence in the future sustainable development. It also helps to boost investor confidence.
Profitable pre-increasing, performance release is guaranteed According to the company’s 2019 pre-increasing announcement, 无锡夜网 the company’s net profit attributable to the mother in 2019 will increase by 80% -110%, corresponding to 39.
05 ppm, the sharp increase in performance was mainly due to the increase in the company’s real estate business settlement scale.
As of the end of the third quarter of 2019, the company’s advance receipts amounted to 1,278.
800 million, an annual increase of 21.
3%, 3 of the previous year’s operating income.
2 times higher than the industry average, which can fully guarantee the release of performance in the next 2-3 years.
The incentive mechanism is perfect, and it is worth looking forward to the future. According to the company’s latest equity incentive plan, the executive exercise conditions are that the company’s net profit rate attributable to the parent in 2019-2021 does not equal 560%, 1060% and 1408% of the net profit attributable to the parent in 2017.For 2019-2021, the net profit attributable to the mother shall not be less than 39.
8 billion, 69.
900 million and 90.
9 trillion, high standards of exercise conditions fully demonstrate the company’s confidence in future development.
Investment suggestions: The performance of Central South Construction has grown rapidly, the land acquisition is stable and conservative, the financial situation has continued to improve, and the incentive mechanism has been improved.
We maintain the previous forecast unchanged, and expect the company’s EPS to be 1 in 19-21.
43 yuan, the corresponding PE is 7.
4 times, maintain the company’s “overweight” rating.
Risks indicate uncertainty in the development of the epidemic, and sales are below expectations.