Under continuous regulation, a profound change is taking place in the real estate industry. With the end of the era of high turnover, some people say that the era of “moderates” has come.
Towards the end of 2021, signals about promoting the steady development of the real estate industry have been issued frequently. The central economic work conference held from December 8 to 10 stressed that we should support the commercial housing market to better meet the reasonable housing needs of buyers and promote the virtuous circle and healthy development of the real estate industry.
In fact, with the real estate industry becoming more and more healthy and rational, there is always good for some stable real estate enterprises. Not long ago, Bank Of China Limited(601988) Association of market dealers held a symposium for representatives of real estate enterprises. The meeting pointed out that priority will be given to supporting enterprises’ registered debt financing instruments in line with real estate regulation policies for the construction of M & A projects or sold projects under construction.
In this list of “sound real estate enterprises” that took the lead in obtaining support, Poly Developments And Holdings Group Co.Ltd(600048) is obviously on the list. It is understood that in November alone, Poly Developments And Holdings Group Co.Ltd(600048) has been issued and registered, and the financing scale to be issued has reached 24.8 billion yuan. As a “top student” in real estate regulation, Poly Developments And Holdings Group Co.Ltd(600048) has maintained a moderate leverage level for a long time. Among the top five real estate enterprises in 2020, poly is also an enterprise that realizes the comprehensive green file of “three red lines”.
The industry pattern is still being reconstructed, and real estate enterprises still need to face many known and unknown challenges. How to cross the cycle, and how to survive and even grow in the unpredictable industry situation? Poly provides a possibility for the industry with its own development strategy.
accurately invest, optimize liabilities, and steadily prepare enough horsepower for future development
2021 is known as the “first year of centralized land supply”. So far, the “lively situation” of high premium land grabbing in the past has gone forever, and the real estate enterprises with tightened capital have begun to be cautious about taking land. Some people believe that under the change of land policy, central enterprises and state-owned enterprises with relatively sufficient capital strength have become the biggest winners.
Obviously, poly is one of them. However, it should be noted that it is not completely accurate to weigh only by financial strength. In terms of poly, the reason why it can make a lot of gains in this year’s land market is that it has practiced the accurate investment strategy of “targeted”.
It is understood that Poly Developments And Holdings Group Co.Ltd(600048) this year’s investment work adheres to the layout structure of “central city + Urban Agglomeration” and the product structure of “focusing on housing”, and effectively implements the structural optimization strategy of “incremental driving stock”.
Internally, Poly Developments And Holdings Group Co.Ltd(600048) implement the investment review committee mechanism to improve the scientificity of decision-making; In combination with the five modules of urban fundamentals, market characteristics, urban planning, policy environment and the company’s own business situation, prepare and dynamically change the Shenzhen New Land Tool Planning &Architectural Design Co.Ltd(300778) portrait, clarify the investment principles such as “whether to take it now, where to take it, what project to take, and what economic indicators to meet”, effectively tilt resources to high-quality cities and excellent teams to ensure accurate investment.
According to the data of its third quarterly report, in the first three quarters of 2021, Poly Developments And Holdings Group Co.Ltd(600048) new expansion projects were 113, with a new soil storage area of about 21.84 million square meters, a year-on-year increase of 10%; The total expansion cost was 143.4 billion yuan, a year-on-year increase of 9%. Based on the accurate study and judgment of the market, Poly Developments And Holdings Group Co.Ltd(600048) absorbed high-quality soil storage while it was low. In the third quarter alone, it harvested a new soil storage area of 5.33 million square meters, with a total expansion cost of about 47.1 billion yuan.
It has to be said that when the industry as a whole is subject to debt repayment pressure and then shrinks the momentum of land acquisition, Poly Developments And Holdings Group Co.Ltd(600048) can still maintain a more positive rhythm of land acquisition, which is not easy.
Under the active investment, it has also prepared enough horsepower for the development of poly in the next stage. Among the new expansion projects in the first three quarters, the expansion amount of 38 core cities accounted for 75%. In the first three quarters, poly’s new construction area was 36.59 million square meters and the completed area was 24.37 million square meters, a year-on-year increase of 10.6%. By the end of the third quarter, poly had 773 proposed projects under construction, with an area under construction of about 148.75 million square meters and an area to be developed of 71.53 million square meters.
If “precision investment” is an important support for poly’s subsequent growth, then a stable “financial structure” is undoubtedly the foundation for poly to “precision investment”.
In November, the financing scale of Poly Developments And Holdings Group Co.Ltd(600048) issued and registered to be issued reached 24.8 billion yuan. These include the successful issuance of two medium-term notes totaling 5 billion yuan, the announcement of the corporate bond plan of no more than 9.8 billion yuan and the issuance plan of 10 billion yuan of rental housing asset-backed securitization products.
It is worth mentioning that, thanks to the high recognition of the capital market brought by steady operation, Poly Developments And Holdings Group Co.Ltd(600048) still maintains a financing cost lower than the industry level in the current tense financing environment. Specifically, the interest rate of the third medium-term note of 2021 issued on November 3 is 3.25%; The interest rate of the fourth issue of medium-term notes issued on November 19 was 3.55%, successfully replacing some low interest bonds with high interest bonds, and the debt structure was further improved.
At the same time, Poly Developments And Holdings Group Co.Ltd(600048) also actively implemented the requirements for major risk prevention and resolution, organized subordinate platform companies to carry out special risk investigation actions, and ensured the health of the company’s overall debt structure and relatively abundant liquidity through measures such as reducing “two funds” and deleveraging. With multiple measures taken, the net operating cash flow of Poly Developments And Holdings Group Co.Ltd(600048) has remained positive for many years.
revenue and profit rose against the market and adjusted the structure to improve quality and efficiency
The future is often difficult to predict accurately. The only thing an enterprise can do is to stabilize itself. In the past, when the industry was generally anxious, poly always maintained its steady pace of development. When the cycle came, this toughness became poly’s confidence to rise against the market.
Both active and accurate land acquisition investment and safe and healthy financial structure are solid backing for poly’s current and future development.
In the first half of this year, of the 119 cities Poly has entered, 33 cities ranked among the top three in the market. Since the second half of the year, facing the market downturn, Poly has realized de inventory through a number of measures. As of the first three quarters of this year, poly had achieved sales return of 367.2 billion yuan, and the capital return rate was close to 90%.
“Steady growth” has become the key word of poly’s operation this year. In the first three quarters of 2021, Poly Developments And Holdings Group Co.Ltd(600048) has achieved a total contract amount of 410.232 billion yuan and a contract area of 25.4373 million square meters, with a year-on-year increase of 11.66% and 4.08% respectively. In the first three quarters, Poly Developments And Holdings Group Co.Ltd(600048) realized an operating revenue of 138.387 billion yuan and a net profit attributable to the parent company of 13.583 billion yuan, with a year-on-year increase of 17.87% and 2.88% respectively. The overall gross profit margin of the company is about 29.82%, higher than the industry average.
It can be seen that steady operation does not mean “stagnation”. On the contrary, from a long-term perspective, this is the right choice for poly to ensure that it maintains its upward momentum against the trend.
In addition to the main business of residential development, Poly has also achieved good expansion results in upstream and downstream related industries this year. In 2021, poly’s property revenue and profit maintained a good trend of steady growth. While the market-oriented expansion scale reached a new high, it deepened the implementation of the large property strategy, in which non residential business accounted for 70%. Benchmark projects include Shanghai Jiaotong line 15, National Defense University, Central South University, Wutai mountain and Guangzhou tower scenic spot; In addition, poly property has made good progress in value-added service business, smart community construction, management efficiency improvement and digital transformation.
Poly health investment added 6380 pension beds. Under the closed management of pension projects, great health has rapidly promoted the family pension service business. Its professional aging products suppliers and companies have obtained 84 national patents, which can provide an overall solution for aging transformation for millions of families across the country. Poly healthcare investment was also selected into the top five of the “influential enterprises in comprehensive operation of health care industry in 2021” and the top 3 in the operation performance of Chinese elderly care institutions in 2021.
In terms of real estate finance, poly’s industrial fund has a cumulative management scale of nearly 160 billion yuan, and SINOSURE fund and poly capital have won the “top 10 most powerful real estate funds in China in 2021”.
While generating revenue from open source, poly is also further improving quality and efficiency through internal management adjustment.
Specifically, poly takes lean management as the starting point, and continues to promote cost reduction and efficiency increase and improve the level of efficiency creation ability in accordance with the principle of “creating maximum value with the least resources”. On December 28, Poly Developments And Holdings Group Co.Ltd(600048) the board of directors deliberated and adopted the proposal on the adjustment of the company’s organizational structure by a unanimous vote.
Although this year’s real estate market is full of ups and downs, poly still handed over a good answer. Taking advantage of the trend and steadily improving, poly, which is ready for long-term development, not only brings inspiration to the industry, but also makes people look forward to its future.
(Economic Observer network)
