17-year performance review.For the whole of 2017, time China achieved contract sales of 41.6 billion yuan (the same below), an increase of 41.9 percent over the same period last year, with a sales area of 2.82 million square meters, with an average selling price of 14752 yuan per square meter, up 24.4 percent from the same period last year. Guangfo region remains the company's core target market, accounting for 65.0% of annual sales (FY16:63.7%) and 51.3% of sales area (FY16:53.8%). In the first two months of 2018, the company achieved contract sales of 6.06 billion, up 119% from a year earlier, while the company's sales target for 2018 will be 55 billion. In 2017, time China's revenue reached 23.1 billion yuan, an increase of 42.6 percent over the same period last year. Gross profit margin rose 27.9 per cent year-on-year (FY16:26.2%); net profit for the period was 3.34 billion, up 68.5 per cent year-on-year, and net profit margin was 14.5 per cent (FY16: net profit 1.98 billion, net profit margin 12.2 per cent). Core profit was 3.2 billion, an increase of 74.7% over the same period last year. The company declared a final dividend of 0.4143 yuan per share, an increase of 31.5% (FY16:0.3151 yuan) over the previous year.
The balance sheet is steadily rising.At the end of 17 years, the company's total debt was 33.3 billion, an increase of 12.6 billion from the end of 16 years; the cash balance was 17.2 billion, enough to cover 6.03 billion of short-term debt; and the net debt ratio was 57.6%, slightly higher than at the end of 16 years, but significantly better than in mid-17 years (1H17VV 68.6% FY16VV 54.7%). Corporate financing costs continued to improve, with average borrowing costs falling to 7.60% (FY15:9.64%FY16:8.32%). On March 3, 2018, the company announced the redemption of US $280 million preferred notes maturing in 2020 with a coupon of 11.45%. Average borrowing costs are expected to fall further. In 2017, the company purchased 25 new pieces of land, with a total construction surface of 49900 square meters and an average cost of 3393 yuan per square meter. Since the newly purchased land in 2017 is mainly acquired through mergers and acquisitions, the cost of newly purchased land is lower than that in 16 / 15 (FY15: 5563 yuan / ping, FY16: 5367 yuan / level). By the end of 17 years, the company's total land reserve was 16.8 million square meters, and the average land cost was 2971 yuan per square meter, accounting for 20 percent of the average sales price in 2017. With the exception of some Changsha projects (about 10% of the land storage), the other projects are in the Pearl River Delta region, mainly in Guangzhou one-hour traffic circle.
The old reform of Guangfo is worth looking forward to.Time China has invested a lot in the old reform projects in Guangfo region. at present, the company has 68 urban renewal projects, and a total of 1920 square meters are expected to be converted into company soil reserves (soil reserves at the end of 17 years: 16.8 million square meters). The transformation of 30 of these projects will be completed in 2018-20 and the soil storage will be 5.62 million square meters. Another 38 projects have signed letters of intent and will complete the transformation after 2020, with an estimated conversion of 13.58 million square meters. If the old project is successfully transformed, it will enhance the value of the company. In addition, due to the continued tightening of the real estate market, M & A / old reform projects have become the company's first choice, which is also in line with the trend of industry consolidation and active acquisition of land in the private market. We believe that time China has obvious local advantages over foreign developers in M & A / old reform projects in Guangfo region. Specifically reflected in the project experience (68 old reform projects), capital investment (17 years invested 17 billion land, mainly invested in the Pearl River Delta), and land acquisition strategy (mainly through the private market). At the same time, the proposal of Guangdong-Hong Kong-Macau Greater Bay Area's strategy also affirms the value of the company's deep ploughing of Guangfo area and one-hour traffic circle.
New brand, new vision.At the beginning of this year, the company officially changed its name toTime China HoldingsLimited company, and released the new position of "urban development service provider" and the new vision of "becoming one of the top 500 enterprises in the world". In terms of urban development service providers, the company mainly focused on industrial towns and signed 22 industrial town projects in 16 / 17. At the same time, the company will also gradually commercial, long-term rental apartments, community services, logistics warehousing, education, furniture home improvement and other business sectors. At present, the company's share price is at 4.5 x FY18PE, which is lower than the industry average. At the same time, the management also revealed that the company will have the opportunity to be included in the Hong Kong Stock Connect list in the third quarter of 2018 as a potential catalyst.