Main points of investment
The net profit in 2015 was 1.22 billion yuan, basically the same as the previous year and in line with expectations. The annual operating income in 2015 was 8.164 billion yuan (the same below), an increase of 11.7% over the same period last year, of which the proportion of revenue from continuing operations such as investment property and property management increased to 19.6%, compared with 10.5% in the same period last year. Gross profit was 2.8 billion yuan, down 10.3% from the same period last year, and gross profit margin dropped to 30.9% from 38.4% in the same period last year. The decline was mainly affected by projects in second-and third-tier cities and an increase in the proportion of lottery life. The net profit attributable to shareholders of listed companies was 1.22 billion yuan, which was basically the same as that of the same period last year and in line with expectations. The company pays a final dividend of HK10 cents per share, with a dividend payout rate of 50%.
Property sales maintained a scale of 10 billion yuan. In 2015, the company's contract sales were 11.27 billion yuan, an increase of 10.4 percent over the same period last year. The contract sales area was 128.9 million square meters, and the average sales price reached 8743 yuan per square meter. The company's contract sales target for 2016 is 12 billion yuan, and the total value of goods that can be sold will exceed 20 billion yuan. The annual target can be achieved with a removal rate of 60%. At present, the market is booming, and the company's sales are expected to exceed the target this year. By the end of 2015, the company's land reserve reached 1591 million square meters, of which Shenzhen's land reserve was 2.47 million square meters, accounting for 15.6 percent. The company plans to replenish land in the core first-and second-tier cities in 2016, with a budget of 1.5 billion yuan. The company's land reserve can provide the company's development in the next 4-5 years.
The financial situation has further improved. The company's contraction in real estate development has reduced financial leverage, with a net debt ratio of 75.6% at the end of 2015, down 11.1 percentage points from the same period a year earlier. In 2015, the company issued two corporate bonds in China, with borrowing rates of 6.95% and 7.29% respectively, reducing the average financing cost of the company. The loan due within one year is 1.4 billion yuan, while the company holds 4.2 billion yuan in cash, the financial situation is relatively stable.
Colorful life continues to expand at a high speed. By 2015, the property management area has reached 320 million square meters, which is the largest property management company in the world by area. In the first half of the year, Kaiyuan International, a high-end property management company, was acquired, which enhanced the overall strength of the company. The company will continue to expand in 2016 and is expected to add 100 million square meters of management area. In addition, the company will increase the exploration of community O2O to create a complete community O2O ecological chain.
Meiyi home relay lottery life, landing on the new third board. Meiyijia, the company's business community management platform, landed on the new third board at the end of 2015 and raised 205 million yuan. By the end of 2015, Meiyi had entered 21 cities across the country, with an additional management area of 5.61 million square meters. Meiyi will create an integrated online and offline rental sharing platform and vacation property operation system, which will promote each other with the company's community cultural tourism application. The "Community +" strategy is beginning to bear fruit and shows great inclusiveness and expansibility.
Our point of view: as a pioneer in exploring the transformation of the real estate industry, Fancy year has made a number of achievements. The company will shift its strategic focus from property development to community operation, and the market space is huge. Its residential property management company, Caisheng, was successfully listed in Hong Kong, and Meiyi, a commercial property management company, was successfully listed on the new third board. The company is also actively exploring in the business community and pension community. In addition, the company provides four major applications on a community-based basis, among which the application of community cultural tourism will be the focus in 2016. At present, the company's PE is 4 times, and the interest rate is more than 5%. In the environment of real estate "destocking", investors are advised to pay attention.
Risk tips: real estate inventory is not as expected, macroeconomic growth is slowing down, the transformation of new business development is not smooth.