Greenland Holdings (600606): A large amount of investment actively sold down slightly
Event: Greenland Holdings released operating data for November 2019: In November 2019, the company acquired 13 new projects, adding 1.14 million yuan in land acquisition and 4.04 million square meters of land acquisition, each time increasing by 255% and 88%.On January 11, 2019, the company gradually increased the amount of land acquisition by 1005 trillion, and the land acquisition area was 38.05 million square meters, which increased by 27% and decreased by 11% each year. Comment sales fell slightly.According to the sales list of the top 100 real estate companies released by CRIC, 广州桑拿 the company achieved sales of 3015 from January to November 2019.500 million, a year-on-year decrease of 7%; the sales area was 2717.10,000 square meters, a 10% reduction each year.The company’s return rate has improved significantly. The return rate in the first three quarters exceeded 87%, an increase of at least 5 percentage points. The investment is huge and positive. 13 new projects were added in November.In November, the company added 13 new projects in Jiaxing, Suzhou, Ganzhou, Yantai, Haikou, Xi’an, Wuzhou, Wuhan, Jining and other regions, with a new land acquisition amount of US $ 11.4 billion, land acquisition area of 4.04 million square meters, each increased by 255%, 88%; From January to November, the company gradually increased the amount of land acquisition by US $ 10.5 million, an increase of 27% year-on-year; the area of land acquisition was 38.05 million square meters, which was a decrease of 11%, and the sales ratio of land acquisition amount was 33%Substitute and upgrade 9 units; the incremental floor price of supplementary projects is 2642 yuan / square meter, which is a year-on-year increase of 43%, mainly due to the company’s optimization of investment structure, focusing on cities and key areas, and strengthening the implementation of major strategic projects.However, from the perspective of profit margin, the supplementary floor price only accounts for 24% of the current average selling price, which effectively protects the company’s future gross profit level. Profitability has been steadily increasing.The company achieved operating income of 2,940 in the first three quarters of 2019.21 ppm, an increase of 26 in ten years.17%; net profit attributable to mother 118.1.3 billion, an increase of 32 in ten years.83%, which has exceeded the advance level in 2018, and the company maintains the development momentum of “steady and fast forward”; the company achieved settlement gross margin of 1-3 in the first quarter.4%, net margin 5.3%, a year increase of 0.4 units.The company’s advance payment 3815.460,000 yuan, an increase of 19 in ten years.3%, future performance growth can be expected. In financing channels, the level of leverage is continuously controllable.The company continued to strengthen financing innovation and issued ABS in the supply chain11.USD 5.6 billion; strengthened overseas financing, successfully issued USD bonds 27 to date.$ 200 million.The asset-liability structure continued to be optimized. After actively controlling debts, the company’s asset-liability ratio was 88 as of the end of the third quarter of 2019.29%, down by 1 every year.02 per share; asset and liability restructuring after excluding advance accounts 51.60%, down 4 each year.09 averages.The cash flow situation was generally good. The operating cash inflow in the first three quarters was 91 trillion, which was positive for 14 consecutive quarters. Investment suggestion: As a leading real estate enterprise, Greenland Holdings has continued to strengthen its layout in core first and second tier cities in the past two years.The company gradually formed its own characteristics and advantages, and actively acquired land reserves through such methods as characteristic towns, high-speed rail station business districts, and super high-rise projects.At the same time, the company’s continued layout in large infrastructure, big finance and big consumption has formed a strong complement to the real estate business.We expect EPS to be 1 in 2019-2021.12.1.35, 1.60 yuan, corresponding estimates are 6.14, 5.11, 4.32 times, maintain “Buy” rating. Risk warning: industry sales fluctuations; policy adjustments leading to operational risks (shed reform, restructuring, interest rate policies, etc.); changes in the financing environment (mortgages, development loans, interest rate adjustments, etc.).