Incident: Vanke has signed agreements with leading financial institutions such as China Merchants Bank to obtain 20 billion syndicated loans. The collateral is Vanke's Wanwei Logistics shares. Up to now, it has received 10 billion dollars.
The financing side is once again facing significant progress, and credit repair is being carried out at an accelerated pace. Using its Wanwei Logistics shares as collateral, Vanke signed agreements with leading financial institutions such as China Merchants Bank to obtain 20 billion yuan syndicated loans. As of May 23, it had received 10 billion yuan in syndicated loans. In the next step, the company will continue to act firmly, and has the confidence and ability to proactively and comprehensively complete the transformation of the financing model while properly handling maturing debts. This 20 billion yuan syndicated loan will help the company further improve its liquidity, and since 2020, it is the largest single loan amount for housing enterprises, reflecting the market's full recognition and confidence in Vanke, and the company's credit is being repaired at an accelerated pace.
The company is active and has made frequent financing moves recently. ① On May 13, Vanke A announced that it applied for a total loan of 7.339 billion yuan from the Bank of China, Agricultural Bank, and Bank of Beijing; ② On May 16, Vanke also successfully issued a CMBS (Commercial Real Estate Mortgage Support Securities) worth 1,435 billion yuan on the Shenzhen Stock Exchange to further reduce overall financing costs; ③ On May 20, Vanke also received another 1.2 billion yuan loan from the Bank of China; ④ Vanke also used Wanwei Logistics shares as collateral to sign an agreement with leading financial institutions such as China Merchants Bank to obtain a 20 billion yuan syndicated loan. With the company's active actions and support from all parties in the market, combined with recent positive and clear policies, the company's operations are expected to return to stability.
The company's sales are in the first tier, actively eliminating and speeding up repayments. From January to April 2024, the company achieved a total contract sales area of 5.554 million square meters and a contract sales amount of 78.87 billion yuan. According to Kerui's top 100 sales list, from January to April 2024, Vanke's full-caliber sales amount and equity sales amount ranked third in the industry and remained in the first tier of the industry; according to the company's quarterly report in '24, the company's repayment efficiency (current year's repayment amount/contract sales amount for this year) remained above 100%. The company is actively eliminating and speeding up repayments, and adding financial support from various parties in the market to the company, and the company's liquidity is expected to continue to improve.
Profit forecasting and valuation: Under the active action of the company, the financing side welcomed significant progress, and credit repair was accelerated.
At the same time, the company's sales are in the first tier, actively eliminating and speeding up repayments, and adding multi-party support from the financing side, liquidity is expected to continue to improve. We expect the company's 24-26 revenue to be 3898.2, 3617.6, and 338.97 billion yuan, respectively, and net profit to mother of 98.2, 102.0, and 10.23 billion yuan, corresponding PE of 11.4, 11.0, and 11.0 times, respectively, maintaining the “recommended” rating.
Risk warning: The real estate market continues to be sluggish; policy implementation falls short of expectations; diversified business development is under pressure.