Focusing on high-level cities, the average sales price is rising against the trend. The company disclosed its sales results in 2022, achieving full-caliber sales of 79.24 billion yuan for the whole year, down 42.2% from the same period last year; the sales area was 631.6 million square meters, down 46.3% from the same period last year; and the average sales price was 12546 yuan / flat, up 7.6% from the same period last year. According to the company's report, the proportion of sales in high-energy cities increased in the first half of 2022, with first-and second-tier cities accounting for 80% of sales. Guangdong, Hong Kong, Macao / Yangtze River Delta / Middle reaches of the Yangtze River / Beijing-Tianjin-Hebei / Southwest Economic Zone accounted for 17.0%, 45.0%, 13.9%, 10.5%, 13.6%, respectively.
"three Arrows together" opened financing channels for the company, and the credit was gradually repaired. In November 2022, the company signed strategic cooperation with Bank of China (30 billion), Bank of Communications (20 billion), ICBC, China Construction Bank, Postal Savings Bank of China and other banks to obtain comprehensive credit support in development loans, bond underwriting and investment, supervision and guarantee of pre-sale funds, overseas financing, internal and external loans, and real estate M & A financing. A number of bonds were issued in December, with a coupon of 1.5 billion (with a coupon of 2.99%, guaranteed by Bond Enhancement) and a corporate bond of 1.25 billion (with a two-year coupon rate of 3.9% and a 2-year coupon rate of 4.9%. The CDS credit protection tool was jointly created by CSC Finance and Guojun Securities, and 750 million was issued on a pure credit basis).
By the end of June 2022, the company's net debt ratio was 44.9%, down 1.4pct from the beginning of the year, deducting 70.3% from the beginning of the year, and 1.8 pct lower than at the beginning of the year; cash short debt Prida 1.73%, the average financing cost in the first half of 2022 was 4.6%, down 22 basis points from 2021.
Semi-annual revenue performance is stable, profits have declined. The company's 2022H1 revenue was 31.66 billion yuan, down 4.2% from the same period last year, mainly due to the reduction of the confirmed sales area and settlement unit price; the net profit from the home was 1.54 billion yuan, down 28.6% from the same period last year; the core net profit from the home reached 1.66 billion, down 26.5% from the same period last year, and the company's gross profit margin reached 17.9% over the same period last year, down 2.8pct from the same period last year.
Prudent investment, regional deep ploughing and continuous optimization of soil storage. The company adheres to the strategy of regional deep ploughing and urban upgrading and continues to optimize soil storage. At the end of June 2022, the company has 337 projects, with a total construction area of 42.94 million square meters, covering 4 times of the sales area in 2021, and sufficient exploitable resources. The overall soil storage is of high quality and focuses on high potential areas, of which the Guangdong-Hong Kong-Macao / Yangtze River Delta / Middle Yangtze River Economic Zone accounts for nearly 67%.
Investment advice: the company relies on Midea, financing channels continue to open, in the context of the gradual repair of market confidence, the company's sales land is expected to return to the normal state. It is predicted that the EPS of the company 2022Universe 2023 in 2024 will be RMB 2.16, and the EPS of 2023 will be RMB 2.11. We will "increase" the company's holdings, with a target price of 13.88 yuan per share, corresponding to a performance of 5.5 times PE in 2023.
Risk hint: performance forecast and valuation judgment are not up to expectations; domestic COVID-19 epidemic situation is repeated.