On the 10th, the monthly sales area decline narrowed by 12pct, and sales performance improved marginally, maintaining the company's holdings growth rating. In October 2023, in a single month, the company achieved a contract sales area of 270,000 square meters and a contract sales amount of 3.2 billion yuan (RMB, same below), down 8% and 4% year-on-year respectively, and the decline was 12pct and 5pct narrower than the previous month. Maintain the company's 2023-2025 performance growth rate of -6.7%, -5.8%, and 5.5%, and maintain the 2023-2025 EPS at 0.83 yuan, 0.78 yuan, and 0.82 yuan, maintaining the company's holdings growth rating.
The company's sales performance is stable and superior to the market. From January to October 2023, the company had a cumulative sales area of 3.13 million square meters and a sales amount of 37.7 billion yuan, up 1% and 15% year-on-year respectively. As of the end of October, the subscribed uncontracted area and the unsubscribed uncontracted amount were 60,000 square meters and 900 million yuan respectively. According to data from Kerrey, the cumulative equity sales amount of the top 50 housing enterprises in January-October fell 8% year on year, and the year-on-year growth rate has fluctuated greatly since 2023. Comparatively speaking, the company's cumulative sales volume has maintained positive growth since February. Overall, the stability is stronger, which is related to the company's strong market competitiveness in the third and fourth tier cities.
The company did not add any new land reserves in October. At the end of September, it still had a buildable floor area of over 20 million square meters.
In the first three quarters, the company added a total of 6 plots of land in Ganzhou, Hefei, Hohhot and Quanzhou, respectively, adding 640,000 square meters of equity floor area and equity land price of 2.6 billion yuan. As of the end of September, the company's buildable floor area was 20.69 million square meters, and the land reserves were relatively abundant, while the company did not add any new land reserves in October.
Housing prices continued to be under pressure. The average sales price in October rose year on year but was lower than the average for the year. The company's average monthly sales price in October was 11,765 yuan/square meter, a slight increase of 5% over the previous year, but lower than the cumulative average price in January-October of 12010 yuan/square meter. Judging from the average monthly price trend, the average monthly price since June has shown a downward trend. The average monthly price from July to October is lower than the corresponding cumulative average price. In the future, we should focus on the price trend of middle and high-end real estate in third- and fourth-tier cities.
Risk warning: Housing prices and demand have declined sharply, and the market competition pattern has worsened as central enterprises from other brands have entered the low-energy market