Event
On January 10, the company announced that in the 12 months ending December 31, 2021, the contract sales attributable to the company's shareholders' equity was about 140.2 billion yuan, an increase of 16.2% over the same period last year, and the contract sales area belonging to the company's shareholders' equity was about 7.974 million square meters.
Brief comment
The ranking of sales scale has been improved, and the growth rate is at the top of the industry. In 2021, the sales amount of the company's equity contract was 140.2 billion yuan, achieving the annual sales target of 97%. Equity sales ranked 17th among national housing enterprises, up 3 places compared with 2020, and ranked 9th among private housing enterprises, up 4 places from 2020, and sales ranking improved significantly. The sales value of company equity contracts increased by 16.2% compared with the same period last year, ranking fifth among TOP20 real estate enterprises and second among private real estate enterprises in TOP20.
The open market is more cautious throughout the year and continues to increase its positions in the Great Bay area and the Yangtze River Delta. In 2021, the total amount of land acquired by the company's auction method is 31 billion yuan, and the construction area of the rights and interests is 3.94 million square meters. The average floor price is 7903 yuan per square meter, accounting for 45% of the average sales price in 2021, which is at a reasonable level. According to the total amount of land acquired / the amount of equity sales, the intensity of land acquisition is 22.1%, and the open market is more cautious. In 2021, the Greater Bay area accounts for 41.5%, and the Yangtze River Delta accounts for 42.9%. Nadi continues to focus on the Greater Bay area and the Yangtze River Delta region with strong fundamentals. By the end of June 2021, the company's exploitable land storage value has reached 532 billion yuan, which can fully guarantee the future sales growth.
The financing channel is smooth, and the high-quality credit is recognized by the market. Since December 2021, the company has announced that the amount of capital raised (including the amount raised) is about 5.1 billion yuan: (1) in terms of equity financing, it has completed the placement of 172 million shares, raising HK $1.156 billion; and (2) in terms of bond financing, it has issued Shenhui Longguang City CMBS with a fund-raising scale of 665 million yuan and plans to issue 3.5 billion yuan of green corporate bonds. Under the background of the improvement of industry financing policy, high-quality private enterprises benefit first, and we believe that the relatively high-quality credit level is helping the company to stand out in this round of industry concentration.
Maintain the buy rating. We slightly downgrade the company's core EPS from 2021 to 2023 to 2.13, 2.24, 2.36 (the original forecast is 2.34, 2.51, 2.79). Based on the company's regional layout focusing on the Great Bay area and the Yangtze River Delta, the profit margin of the replacement value is high, the future sales and settlement profits are guaranteed, and the current industry is driven by policy recovery, plate valuation starts to repair, we believe that the company will also benefit from this, so maintain the buy rating.
Risk hint: urban renewal in Greater Bay area does not advance as expected; performance carry-over does not meet expectations.