Wu Jianbin Of Sunshine City: Dividends Are Disappearing, Real Estate Enterprises Must Make Changes

"After more than 20 years of development of the real estate market, the most important thing is to promote the dividend. There are just needed dividends, land dividends and financial dividends. Today, a lot of dividends are disappearing, which requires us to make some changes in the real estate market. " At the "Boao · 21st century real estate forum" held on August 8, Wu Jianbin, executive vice president of sunshine city group, said in his speech.

Wu Jianbin's view on "dividend disappearance" was generally accepted by the participants. In recent years, China's real estate market has crossed the balance point of supply and demand, from short supply to the stage of overall supply exceeding demand. At the same time, the long-term mechanism began to operate, and the property market regulation tended to be normalized. This not only reduces the profits of enterprises, but also makes the real estate transition from the "golden age" to the "Silver Age".

As a senior real estate financial practitioner, Wu Jianbin, from the perspective of Finance and finance, made a speech with the theme of "the basic logic of high-quality real estate growth at present", and discussed the real estate enterprise strategy in the uncertain era.

Three kinds of indicators support the high quality development of real estate enterprises

Wu Jianbin said that in 2020, the real estate market will face greater uncertainty due to the impact of the epidemic. In this case, real estate enterprises need to set three kinds of indicators to achieve high-quality growth.

The first is performance indicators, including sales, settlement income, new land reserves, sales collection and other four sub indicators. "If the real estate market maintains a certain growth rate every year, what I am most concerned about is the growth rate of these indicators."

Wu Jianbin believes that in the past few years, the growth rate of the above indicators is very high. Limited by various factors, it is a great thing to maintain a growth rate of 5% - 10% this year.

Second, the ratio of short-term loans to total debt, including the ratio of short-term loans to total debt, etc.

Wu Jianbin pointed out that the volatility of the real estate market is very large. Affected by various factors, the debt ratio of real estate companies in the past few years is generally higher than that of other industries. "High debt ratio is not a big problem when the economy goes up, but when the market goes sideways or goes down, some enterprises with high debt will face great risks and pressure."

The third is ROE (return on equity), roie (return on investment) and other indicators. Wu Jianbin pointed out that from a financial point of view, over the past few years, enterprises have been more in pursuit of roe. However, due to the needs of various aspects, in the past year or two, the company has paid more attention to roie, which mainly emphasizes the capital return of shareholders.

He also said that with the vigorous development of China's economy and the development of enterprises, there are still many "outlets" in the future, and the value growth indicators of enterprises are gradually valued. "What is the normal settlement income and the long-term value of the enterprise in the future? As a real estate company, I should pay more attention to this aspect. "

Sales is the first priority

In order to achieve the high-quality growth of the above three indicators, Wu Jianbin, taking sunshine city as an example, put forward "six actions" of real estate enterprises, which are as follows: to fix expenditure by revenue, to pay close attention to sales, to reconstruct large operation system, to pay close attention to quality revolution, to match incentive mechanism, and to seek capital expansion.

"In the current economic uncertainty, and the market is in a sideways situation, sales is the first priority." Wu Jianbin said that although it is possible to face the situation of substandard profit margins, from the perspective of safety, cash return through sales can keep enterprises in a healthy state.

According to the data of the National Bureau of statistics, from January to June this year, the sales volume of commercial housing nationwide was 6689.5 billion yuan, down 5.4% year on year. According to the sales data released by real estate enterprises in the first half of the year, most enterprises are roughly the same as the same period last year, and the growth rate of real estate enterprises with sales growth is mostly in single digits.

Wu Jianbin said that affected by the epidemic, the sales situation of real estate enterprises in the first half of the year was relatively general. By July and August, the market sales will basically return to normal. It is expected that enterprises will increase supply in the second half of the year, and it is likely that supply will exceed demand in the market. In this case, how to grasp the sales will be a major challenge for the real estate enterprises.

The new crown pneumonia epidemic has brought many new opportunities to the real estate industry. On the one hand, the industry further returns to products, green and intelligent become the product concept that the market is flocking to; on the other hand, the property management industry and other service areas ushered in the "tuyere", after the epidemic, many property companies landed on the capital market, many of which were separated from real estate enterprises.

"If an enterprise wants to develop for a long time, its quality must be revolutionary." Wu Jianbin suggested that efforts should be made in the aspects of green, environmental protection, function, on-time delivery, property management, etc., and at the same time, create a distinctive quality IP and establish long-term competitiveness.

In addition, the real estate industry may encounter other "tuyeres". Wu Jianbin said that if real estate companies want to develop with high quality, they should constantly aim at the wind outlet and cooperate well in human resources, capital and other aspects in advance. In this way, it is possible to separate these businesses and develop independently when the next outlet comes. "It must be done from a financial point of view, but it also takes time."

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