Report summary:
Kerui released the top 100 list of real estate enterprise sales in January 2022. The full caliber sales amount of the top 100 real estate enterprises in a single month decreased by 40.7% year-on-year. Country garden ranks first in the industry in terms of monthly sales, with sales of 49.5 billion yuan. Vanke and Poly Developments And Holdings Group Co.Ltd(600048) rank second and third, with sales of 33.5 billion yuan and 28.3 billion yuan respectively.
Industry: poor sales performance and sharp decline in growth rate
In January, the top 100 real estate enterprises achieved a total sales amount of 584.9 billion yuan in a single month, a year-on-year decrease of – 40.7%, down 37.5pct from January to December 2021; In January, the market sales end decreased significantly month on month, and the year-on-year growth rate was also poor. We believe that due to the slowdown in the supply of real estate enterprises during the Spring Festival holiday and the pessimistic expectations of consumers, sales have been greatly negatively affected at both ends of supply and demand, and their performance is weak. We expect that under the condition of maintaining policy stability, sales will pick up slightly in February 2022, but sales will still face great pressure and are expected to continue to maintain the weak trend of negative growth.
Real estate enterprises: in January, all echelons decreased significantly, and the performance of large real estate enterprises was slightly stronger
In January, the number of real estate enterprises with sales of more than 10 billion yuan per month was 14, down 22 from the same period last year. Country garden achieved full-scale sales of 49.5 billion yuan in a single month, ranking first in the industry, Vanke and poly ranked second and third, with sales of 33.5 billion yuan and 28.3 billion yuan respectively in a single month. In terms of sales growth, the real estate enterprises ranking top 16-30 in January were slightly better than other echelons, and all echelons showed an obvious downward trend; Among the top 30 real estate enterprises, only four real estate enterprises have achieved positive growth in sales scale and poor overall performance.
Investment advice
In January, the sales of the top 100 real estate enterprises continued to decline, and the performance of each echelon was weak. At present, the valuation of the real estate sector is at a low level, with strong performance certainty and high dividends. We mainly recommend leading real estate enterprises with strong performance certainty China Vanke Co.Ltd(000002) , Poly Developments And Holdings Group Co.Ltd(600048) , Jinke Property Group Co.Ltd(000656) , Seazen Holdings Co.Ltd(601155) , Hangzhou Binjiang Real Estate Group Co.Ltd(002244) , Longguang group, Xuhui holding group, country garden, Baolong real estate and Country Garden Service in property management sector, China Merchants Property Operation & Service Co.Ltd(001914) , Xincheng Yue service, Xuhui Yongsheng service, New Dazheng Property Group Co.Ltd(002968) and Nacity Property Service Group Co.Ltd(603506) . Relevant beneficiary objects include Longhu group, China Jinmao, poly property, green city services, etc.
Risk tips
Sales fell short of expectations, and real estate regulation policies continued to tighten.
