The performance gradually recovered and the dividend payout was stable
In the first half of 2021, the company realized operating income of 12 billion yuan, an increase of 495% over the same period last year, and achieved a core net profit of 790 million yuan, returning to the level of the whole of last year. The gross profit margin reached 22%, which also bottomed out. The company's dividend is stable, with an interim dividend of 5.3 Hong Kong cents per share, accounting for 35% of the core return net profit; since listing, the company's cumulative dividend has far exceeded the listing price and the current stock price.
Sales reach a new high and contribution becomes more diversified.
In the first half of 2021, the company achieved a sales area of 2.85 million square meters, an increase of 9% over the same period last year; sales of 52.7 billion yuan, an increase of 23% over the same period last year, and 47.9% of the annual sales target; and in the first half of the year, the company achieved an average contract sales price of 18526 yuan per square meter, up 12.8% from the same period last year. The company's contract sales contribution becomes more diverse. In the first half of the year, the Yangtze River Delta, Hercynian, Bohai Rim, Southwest, Greater Bay and Central China accounted for 65.5%, 10.4%, 8.6%, 7.7%, 5.5% and 2.3%, respectively. The company accelerates the project development cycle and actively distributes the first-and second-tier core cities across the country. In the second half of the year, a number of new sets in some high-energy cities will be launched one after another, with a sales value of about 131.9 billion yuan. According to the 43% removal rate, the annual sales target of 110 billion yuan can be achieved.
In the first half of the year, the company took the land cautiously, adding a total of 4 pieces of land reserves, respectively located in Suzhou, Jiangmen and Zhengzhou, with a total construction area of 550000 square meters and a corresponding value of 11.1 billion yuan. By the end of the first half of 2021, the company has a total land storage of 22 million square meters, with a total value of about 442.8 billion yuan, which can meet the sales and settlement needs of the company in the next two to three years. The land reserve rights and interests of the company account for 62%, of which first-tier, second-tier and quasi-second-tier cities account for 89%. The Yangtze River Delta, around the Bohai Sea, Hercynian, Dawan area, Central China and Southwest China accounted for 37.5%, 21.7%, 15.0%, 10.1%, 8.7% and 7.0%, respectively.
Sound financial performance and optimization of debt structure
By the end of the first half of 2021, the company's net debt ratio was 80.4%, excluding accounts received in advance, the asset-liability ratio was slightly less than 74.0%, the cash-to-short debt ratio was 1.85, the "three red lines" were close to the overall standard, and the financial performance was sound. Corporate financing costs remained stable, with average financing costs of 7.13% at the end of the first half of 2021, down 0.06pct from the end of last year. Up to now, the total interest-bearing liabilities of the company are 60.2 billion yuan. Structurally, the liabilities of US dollars, RMB and Hong Kong dollars account for 58.2%, 39.8% and 2.0% respectively. The debt due within one year is 15.17 billion yuan, accounting for 25% of the total interest-bearing liabilities.
The performance gradually recovers, the financial performance is sound, the sales performance of the "buy" rating company gradually recovers, the financial performance is sound, the land quality is of high quality, and the rapid growth of accounts received in advance will effectively support the company's performance. It is estimated that the core return net profit of the company in 2021 and 2022 is 1.62 billion yuan and 1.86 billion yuan respectively, the corresponding core EPS is 0.26,0.30 yuan respectively, and the PE corresponding to the latest stock price is 5.0,4.3X respectively, maintaining the "buy" rating.
Risk.
The company's sales and settlement are not as expected, the profitability is not as expected, or the strength of the land is not as strong as expected.