The brand has a long history and obvious shareholder advantage. 1) the company is the largest and the controlling shareholder opens the group, which is a wholly state-owned enterprise in Beijing. 2) based on deep ploughing and strengthening Beijing, the company has entered more than 30 cities in 17 provinces and autonomous regions. From the perspective of regional layout, three major regions have been formed: Beijing region (Beijing-Tianjin-Hebei region with Beijing as the center), northern region and southern region. 3) in 2015, the company put forward the development idea of "being an urban renewal official" and started the exploration of "urban renewal" business. In addition to residential and commercial offices, enterprises are involved in the renewal and renovation of old urban areas and real estate financial business.
Deep ploughing to strengthen Beijing, the regional advantage takes the lead. By the end of 2022, the company's total land storage area is estimated to be about 22.4273 million square meters, of which the estimated total land storage area is 35.8% in Beijing. We believe that compared with the whole country, the sales and price resilience of Beijing real estate market is obvious, and it still has room to strengthen growth in the future, which is an ideal location chosen by domestic real estate developers; the company will continue to enjoy market dividends after long-term ploughing Beijing.
Promote the "first experience" and lay out the old reform and first-level development business. By the end of 2021, the company's shantytown transformation and land development projects have a total land area of 15.8912 million square meters. The total land area of the above projects is 9.7445 million square meters, and the total land area of the follow-up reserve project is 6.1467 million square meters. From the point of view of investment planning, the total investment scale of the implementation project is about 46.313 billion.
The problems left over by history have been cleared out one after another, and the settlement gross profit margin is reasonable. In recent years, companies have responded to historical inventory price losses through asset impairment. As a result of the above problems, the company's income does not increase profit, and the level of profit margin decreases.
In 2022, the gross profit margin of sales of 1-3Q company is 21.6%, and the net profit margin of sales is 0.5%. According to the current market changes and inventory situation, under the premise of no major fluctuations in the industry, as the follow-up high-quality projects enter the settlement stage, we think that the company's future profit margin will be improved.
Debt is orderly and controllable, financing is smooth and innovative. 1) the company insists on optimizing the financing structure and controlling interest-bearing liabilities. Through multiple measures, the company's financing structure has been optimized and the debt ratio index has declined steadily. The overall average financing cost of the company in 2021 was 4.85%, down 0.3 percentage points from 2017. 2) the housing rental fund initiated by the enterprise and China Construction Bank Corporation seeks cooperation in many aspects on the revitalization and efficiency of the first-opened shares in hand-held and self-owned assets. Jianxin housing rental fund raised 30 billion yuan.
So far, more than 20 projects have been focused on, with total project assets exceeding 10 billion yuan. When the fund investment project is mature, it can be withdrawn through the issuance of REITs or the market-oriented transfer permitted by national policy.
The reasonable value range is 8.43-9.63 yuan, which is "better than the market" rating for the first time. It is estimated that the EPS of the company from 2022 to 2023 is 0.09yuan and 0.46yuan respectively. Considering that the historical problems left over from the enterprise's 2022 report have been cleared out one after another, the key projects in Beijing have entered sales and settlement one after another since 2023, and the fundamental improvement trend in the later stage is relatively determined. It is estimated that the company's net assets per share will be 12.04,12.49 yuan respectively from 2022 to 2023, with a dynamic price-to-book ratio of 0.70-0.8 times in 2022, and the corresponding reasonable value range is 8.43-9.63 yuan per share.
At present, the company's RNAV is about 12.76 yuan per share, and the company's closing price on November 23, 2022 is about 55% lower than that of RNAV. For the first time, it was given a rating of "better than the market". Risk hint: real estate sales are not as expected.