The Zhitong Finance App learned that Ping An Securities released a research report stating that it was first given a “recommended” rating to C&D International Group (01908). The net profit for the return mother is estimated to be 55.7/65/7.7 billion yuan in 2023-25, and the EPS is 3.02/3.52/4.17 yuan. Last year, the company had total revenue and net profit of 99.6 billion yuan and 4.9 billion yuan. The 2018-22 CAGR was 68%/37% respectively. Backed by the Xiamen State-owned Enterprise Construction and Development Group, the majority shareholders' support and market-based management mechanism to overcome adversity, rely on refined product positioning and focus on regional layout to outperform peers, and actively acquire land and expand reserves with the support of diversified financing instruments, C&D International is expected to further expand its market share in the reshuffle of the industry.
According to the report, in 2022, the company exceeded its sales target for the year during the industry adjustment period, and entered the top ten sales in the industry. 2023H1 sales continued to lead the year-on-year growth rate (+55.7%); moreover, the increase in scale did not sacrifice the equity ratio; in recent years, the sales equity ratio remained above 70%; the product system focused more on improved products, so project management and management fee control were more advantageous than the industry. In terms of investment and development, the company focuses on the bottom of the land market sentiment to fill positions. The 2023H1 company's land acquisition sales amount ratio and area ratio are 36.1% and 70.2% respectively, which is higher than the overall value of the top 50 housing enterprises (amount ratio 21.6%, area ratio 27%); at the same time, it also focuses on asset liquidity and focuses on core areas to supplement high-quality land. Core area projects usually have a high flow rate on a single package, effectively preventing excessive inventory accumulation from occupying company resources, etc., which also helps to seize opportunities after the market recovers.
The bank mentioned that the company maintains a high level of financial security, meets the “green tier” of the three red lines, and has abundant liquidity. The total share of inventory and monetary capital in the total asset structure reached 78%, ranking first among mainstream housing enterprises; financing costs at the end of 2022 were 4.3%, and bank loan amounts not already approved were sufficient. In addition, the company uses diversified financing instruments, such as allotment of shares, convertible bonds, perpetual bonds, etc., to further supplement equity funds. Land storage and finance have received repeated support from the parent company's construction and development of real estate, and have repeatedly injected high-quality land storage projects into the company in Shanghai, Wuxi, etc. through equity transfers, etc. On the financial sidealsoProvide “blood transfusions” for perpetual bonds to help downgrade the “three red lines”. In November 2021, the company joined Hecheng Co., Ltd. (603909.SH) of the Engineering Technology Service Company to provide design, supervision, construction and other technical services for some of the company's housing development projects to control building quality and improve operational efficiency such as engineering layout; in 2022, it merged with Construction and Development Properties (02156) again to improve the layout of the engineering and service industry chain and release the multiplier effect of collaborative development.