On August 23, the company released its semi-annual report of 2023, with revenue of 2.72 billion in the first half of the year, + 108.7% of the same period last year, and net profit of-110 million, + 69.5% of the same period last year.
The performance is reduced compared with the same period last year, and the future settlement is guaranteed.
In the first half of 2023, the company achieved revenue of 2.72 billion, + 108.7% compared with the same period last year, and its net profit was-110 million, a loss of 240 million yuan compared with the same period last year. The company's significant loss reduction is mainly due to: 1) a substantial increase in project settlement revenue; 2) the sales gross profit margin reached 32.3%, an increase of 9.72 pct over the same period last year; in addition, by the end of the 2023 half year, the company's accounts received in advance and contract liabilities were 15.05 billion yuan, + 204% compared with the same period last year, reaching 5.8 times the 2022 operating income, and the company's future revenue settlement is fully guaranteed.
Sales are good, focus on core cities
According to the 2023 semi-annual report, according to the Carey sales ranking, the company achieved sales of 10.53 billion yuan, + 49.6% compared with the same period last year, ranking 70th in the Corey sales ranking, up 26 places from the same period last year, and the industry status was further improved. In the first half of the year, the company's key project, the cloud extraction forest project, obtained a pre-sale license at the end of February, launched online recognition and opening in March, and launched 245 residential units, with a removal rate of 95% on the opening day. In terms of land acquisition, in April, the company successfully won a residential plot in Xinzhuang, Minhang District, Shanghai, with an area of 21000 square meters and a volume ratio of 2.0, laying a solid foundation for future development.
Smooth financing channels and stable return to shareholders
In the first half of 2023, the company successfully issued 750 million yuan of corporate bonds and 2.2 billion yuan of medium-term notes, with interest rates of 3.57% and 3.82% respectively, both at a low level in the industry. By the end of the reporting period, the company's financing interest rate had fallen to 4.33%, and financing costs remained low. In 2022, the company's cash dividends accounted for 52.5% of net profit. Since listing, the company has distributed a cumulative cash dividend of 4.17 billion yuan to shareholders, accounting for 37.2% of the accumulated net profit. It is expected that with the recovery of the company's performance, the amount of dividends is expected to continue to rise in the future.
Investment suggestion: Chinese enterprises have rapid growth in sales, rich low-cost, high-quality land reserves, good financial situation and obvious financing advantages. at the same time, relying on the Shanghai Real Estate Group to promote urban transformation strategy is expected to fully benefit in the future. We estimate that the company's 23-25 net return profit will be 1.55, 1.93, 2.42 billion yuan, corresponding to a PE of 14.8, 11.8, 9.4 times, respectively, maintaining the company's "overweight" rating.
Risk tips: sales are not as expected, profit margins decline, the real estate industry accelerated decline, research and use of information is not timely.