Housing Enterprises Scale And Profit Balance Sample: Gold Last Year Net Profit Of The First Billion

"Ginger or old spicy", as an old leading housing company, "Jin Bao Wan Jin" one of the gold, last year's performance exceeded expectations, the first time sales exceeded 200 billion, while the net profit of the parent billion.

Jindi, chairman of Lingke, is famous for its "no scale theory" and balance. 2015-2018 consecutive four years, gold Cash Dividends account for more than 30% of the net profit of the year. In the changing market, performance growth and profitability are very stable, and over 40% of the gross margin of real estate business is stable in the forefront of listed housing companies.

Since the fourth quarter of 2018, the real estate market has entered a period of adjustment. On the contrary, this kind of housing firm has brought opportunities for expansion.

Last year, a total of 113 land was seized in the whole year, with a continuous layout of the second line, and the land equity ratio continued to improve. This will contribute to the sustained growth of company size and profit.

Increasing profits and increasing profits

According to the 2019 earnings report, Jindi achieved double growth in revenue and net profit to parent: operating income and net profit were 100.75 yuan and 63 billion 420 million yuan respectively, up 25.09% and 24.41% compared to the same period last year.

According to Kerri data, in the increasingly fierce scale war, Jindi achieved a sales amount of 210 billion 600 million yuan and completed the three year impact of the 200 billion scale target, ranking fourteenth in the list.

In 2019, the cumulative sales of TOP100 Housing enterprises increased by 6.5% compared with the same period last year, and gold was two times more than 14.9%, ranking the highest in the industry.

In the background of "increasing income and increasing profits" in the whole industry, the profitability of Jindi has steadily improved in the time of expanding the territory. In 2019, the net sales rate of Jindi increased to 24.51%, ranking the highest in the industry. Net asset yield (ROE) rose to 20.14% in three consecutive years. Basic earnings per share of 2.23 yuan, an increase of 24.58% over the same period.

In addition, the distribution of welfare, Jindi also no mercy, four consecutive years dividend payment rate exceeds 30%, this year plans to send 6.7 yuan for every 10 shares.

In order to achieve higher profits, Jintao improved the style of small stocks in the past, and paid attention to improving the proportion of rights and interests of cooperative projects. In the first half of 2019, the proportion of new storage rights and interests increased to 59%, and the stock rights and interests of stock increased to 54% from the low of 2017.

"With the deepening of the core cities into the harvest period, the comprehensive gross profit margin of Jindi is increasing year by year, leading the leading industry and the industry average level, ranking third in the A share listed 20 Housing enterprises, which is only inferior to overseas Chinese town and Financial Street". Huatai Securities believes that with the increase of the land to equity ratio, the scale and quality of the gold's profit will continue to grow steadily.

With the active expansion, the leverage ratio of Jindi has increased. In 2019, the net debt ratio of Jindi rose to 60.24%, but still far below the average level of listed housing companies.

As for debt structure, as at the end of 2019, the interest bearing liabilities of Jindi were 94 billion 758 million yuan, accounting for 28.3% of total assets. Among them, the interest bearing liabilities payable in one year amounted to 35 billion 50 million yuan, accounting for 37%, and the interest bearing liabilities of more than one year were 59 billion 710 million yuan, accounting for 63%.

At the end of 2019, the money in hand was 45 billion 142 million yuan, the cash short debt ratio was 1.29, the cash interest coverage ratio was 3.50, and the short-term liquidity remained adequate.

The low net debt ratio and the average deduction of the assets and liabilities ratio of the advance receipts greatly enhance the ability of gold to leverage the debt free interest.

Huatai Securities Research Report shows that Jindi's operating leverage (interest free Liabilities / owner's equity) has increased by 91 percentage points since 2015 to 197% in 2018, of which, the contribution of pre payment is 105%, payables and other payables contribute 74%.

Under the high quality AAA credit rating escort, Jindi's low cost financing superiority continues to highlight. In the more limited financing in 2019, Jindi has completed the issuance of 3 billion yuan ultra short term financing certificate, 1 billion 400 million yuan asset support note, and 550 million dollar foreign currency debt. The cost of financing is only 4.99%, second only to the 4.21% of China Sea, 4.45% of Huarun and 4.54% of Longhu, and is at the top level of the industry.

Just now, the interest rate of the 18 gold land 03 has been cut from 5.29% to 1.50% since May 28th. If successful, gold will become the first housing price to reduce the stock interest rate this year.

Focus on core second line

Taking a look at the real estate industry, housing enterprises that can achieve double growth of scale and profit and maintain a balance continuously have their own adherence to the urban layout, that is, only in the second tier of core cities and a small number of three or four line cities, the core cities and metropolis circle will be ploughed.

Gold is no exception. The company's deep ploughing focuses on a second tier city, resulting in the growth of single city productivity is obvious. In 2019, gold accounted for about 65% of the sales in the second tier cities, and ranked the top ten in Shanghai, Hangzhou, Tianjin, Nanjing, Dongguan, Haikou, Shenyang, Kunming, Jiaxing and other cities.

According to specific projects, the sales volume of Yuehong Bay and other projects in Hangzhou is over 5 billion yuan. Sales of Nanjing Yun Yi Hui Garden, Beijing Huajin garden, Shenyang dantan mountain, Yiwu Xijiang Yayuan and other projects sell more than 3 billion yuan, and the sales volume of Chongqing middle Jiao Central Park, Wenzhou Hui Li and Beijing Hua Dong garden are over 2 billion yuan.

In terms of soil storage, the amount of gold in 2019 was 120 billion yuan, an increase of 20% over the same period last year, and the area reached 16 million 880 thousand square meters, an increase of 57.5% over the same period last year. In the past 3 years, the new storage area of the earth has increased by 10 million square meters. It has entered 11 new cities: Guiyang, Langfang, Ezhou, Taizhou, Jiangmen, Xiangyang, Jiujiang, Zhangzhou, Zhanjiang, Wuhu and Wuhu.

Among them, Jindi persisted in the rational layout, the total investment of the first tier cities accounted for 10%, the second tier cities accounted for 55%, the three or four line cities accounted for 35%, and the total amount was 65% in a second tier city.

Take the average price of 7109 yuan / square meter, down 23.8% compared with the same period last year, the average price is only 36% of the average selling price, 14 percentage points lower than the same period last year, and the cost control is further optimized.

By the end of 2019, Jindi had allocated 61 cities nationwide, forming a regional layout mainly based on the Beijing Tianjin Hebei metropolitan area, the Yangtze River Delta metropolitan area, Guangdong, Hongkong and Macau, and the core cities of the central and western provinces and the three northeastern provinces. The total storage area is about 52 million 330 thousand square meters, which is equivalent to 4.8 times the sales in 2019, and the proportion of rights and interests is 53.5%.

In the real estate industry in 2020, under the impact of the new crown pneumonia epidemic, the downward pressure is obvious. The golden land that grew up in the wind and waves has a deeper thinking and insight into the survival and development of enterprises.

In January 26th, Jindi began a comprehensive assessment of the possible impact of the outbreak on the resumption of work, and formulated corresponding anti epidemic measures and corresponding measures in advance. As of mid April, the overall resumption rate of construction projects in Jindi has reached 100%.

? ? "At present, Jindi is also constantly monitoring the sales recovery of various urban projects, and item company will appropriately adjust sales targets for some of the larger affected item company, but the overall goal setting will still maintain a certain growth". Turnover will gradually recover.

Overall, gold is still facing challenges in terms of sales this year, but a good financial disk and business strategy will give gold to the bottom and help expand the gold trend.

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