The core return net profit increased by 4.6%, and the dividend payout was stable.
In the first half of 2021, the company achieved an income of 35.17 billion yuan, an increase of 13.3% over the same period last year, and a core profit of 5.58 billion yuan, an increase of 4.6% over the same period last year. The company declares an interim cash dividend of HK49 cents per share, and the dividend ratio remains stable, accounting for about 40% of the company's core return net profit. The company's gross profit margin in the first half of the year was 27%, down 3pct from the end of last year.
High sales growth and accelerated expansion of the Yangtze River Delta
In the first half of 2021, the company realized an equity sales area of 3.91 million square meters, an increase of 28% over the same period last year; the amount of equity sales reached 73.6 billion yuan, an increase of 59% over the same period last year, and the annual target of 51% has been achieved. The company invests precisely and focuses on the high-energy metropolitan area. in the first half of the year, the company added 3.63 million square meters of land storage rights and interests, equivalent to 64.9 billion yuan, of which the Great Bay area and the Yangtze River Delta accounted for 82%. By the end of the first half of 2021, it has a total land storage of about 39.3 million square meters, equivalent to about 532 billion yuan, of which the first and second lines account for 85%. The rich land storage can ensure the development of the company in the next three years. In addition, the company has another urban renewal resources with a potential convertible area of 46.26 million square meters and 125 projects, of which Guangdong-Hong Kong-Macau Greater Bay Area accounts for 93%.
Financial stability, rating upgrade
By the end of the first half of 2021, the company's net debt ratio was 60.8%, and the asset-liability ratio excluding accounts received in advance was 69.0%. The guarantee ratio of short-term solvency-monetary funds / (short-term loans + non-current liabilities due within one year) is 1.85, and the three red lines are fully met. The company's financing costs continued to fall, with a new financing rate of 4.6%, down 15pct from the end of last year. The company's rating was upgraded again, Fitch upgraded its outlook to positive, and Moody's Corporation upgraded to Ba2,MSCI and ESG to BB.
Operate steadily, foster new growth, and maintain a "buy" rating
The company has sound operation, high sales and good financial performance. in the future, the company will expand asset management and industrial chain services in addition to residential development and urban renewal business. It is estimated that the core return net profit of the company in 2021 and 2022 is 13 billion yuan and 14 billion yuan respectively, the corresponding core EPS is 2.62,3.14 yuan respectively, and the PE corresponding to the latest stock price is 3.3,3.1x respectively, maintaining the "buy" rating.
Risk
The company's sales and settlement fell short of expectations, profitability was lower than expected, financial costs rose higher than expected, or market regulation exceeded expectations.