\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 02 Financial Street Holdings Co.Ltd(000402) )
Core view:
Due to the great debt pressure, one of the main tasks of Financial Street Holdings Co.Ltd(000402) in 2021 is to optimize the debt structure, but at the same time, the enterprise did not reduce its investment, and the new investment increased by 93.8% year-on-year. Therefore, although the enterprises sold their assets one after another, they still stepped on two red lines, but the company is backed by Financial Street Holdings Co.Ltd(000402) group, with less capital pressure. It is expected that the failure to meet the three red lines on time will have little impact on the subsequent operation of the enterprise.
I. Beijing Tianjin Hebei and Yangtze River Delta contributed more than 60% of the performance
In 2021, Financial Street Holdings Co.Ltd(000402) sales performance was mainly contributed by Beijing Tianjin Hebei economic circle and Yangtze River Delta economic circle, with the sales amount accounting for 33.5% and 27.9% respectively. Under the difficult background of the real estate industry, the enterprise paid close attention to the sales return and actively promoted the sales elimination of the project, with a year-on-year increase of 30% The higher proportion of funds reserved for private enterprises can be avoided under the condition of higher marginal equity of the project.
II. Operating revenue increased by more than 30% year-on-year, with a net profit margin of 6.5%
In 2021, Financial Street Holdings Co.Ltd(000402) achieved an operating revenue of 24.16 billion yuan, with a significant year-on-year increase of 33.3%, a gross profit of 51.8% and a year-on-year decrease of 13.0%, mainly because some high-cost projects of real estate development business were carried forward in 2021, which reduced the overall profit of the enterprise. The roe of the enterprise has dropped all the way from 11.4% in 2018 to 3.8% in 2021. In particular, Financial Street Holdings Co.Ltd(000402) is highly leveraged, but it has not achieved the corresponding high yield. It is expected that or with the successful transformation of the industry, the return on net assets of the enterprise will gradually stabilize and then rise.
III. there is still a long way to go to green, and asset disposal will be strengthened in 2022
By the end of 2021, Financial Street Holdings Co.Ltd(000402) although it has achieved partial pressure drop of interest bearing liabilities, the three red lines are still stepped on twice, with a net debt ratio of 146.1%, an asset liability ratio of 72.0% excluding advance receipts, and a cash short debt ratio of 1.4 times. From the perspective of debt situation, Financial Street Holdings Co.Ltd(000402) will intensify asset disposal and realize cash flow replacement in 2022.
Due to the great debt pressure, one of the main tasks of Financial Street Holdings Co.Ltd(000402) in 2021 is to optimize the debt structure, but at the same time, the enterprise did not reduce its investment, and the new investment increased by 93.8% year-on-year. Therefore, although the enterprises sold their assets one after another, they still stepped on two red lines, but the company is backed by Financial Street Holdings Co.Ltd(000402) group, with less capital pressure. It is expected that the failure to meet the three red lines on time will have little impact on the subsequent operation of the enterprise.
I. Beijing Tianjin Hebei and Yangtze River Delta contributed more than 60% of the performance
In 2021, Financial Street Holdings Co.Ltd(000402) achieved a sales amount of 33.88 billion yuan, a year-on-year decrease of 15.7%, and a sales area of 1.745 million square meters, a year-on-year increase of 1.0%. From a subregional perspective, it mainly depends on Beijing Tianjin Hebei and the Yangtze River Delta economic circle. Among them, Beijing Tianjin Hebei has achieved a sales amount of 11.35 billion yuan, accounting for 33.5%, and the Yangtze River Delta has achieved a sales amount of 9.46 billion yuan, accounting for 27.9%. Due to the low unit price of the project, the sales amount accounts for only 17.3% of the total sales amount. Under the difficult background of the real estate industry, the enterprise pays close attention to the sales collection and actively promotes the sales deconvolution of the project. During the period, the sales collection increases by 30% year-on-year. In special periods, the enterprise needs to strictly ensure the safety of funds and balance various collection and expenses.
During the reporting period, Financial Street Holdings Co.Ltd(000402) adhered to the regional strategy of "deeply cultivating the central cities of the five major urban agglomerations and the satellite cities / regions of the surrounding one hour traffic circle", and obtained eight projects in Shanghai, Wuxi, Tianjin, Jiaxing, Kunshan and Gu'an. The total construction area of the new projects was 1.334 million square meters, with a total cost of 10.22 billion yuan, a year-on-year increase of 93.8%, and the proportion of land acquisition amount in the sales amount was 30.1%, an increase of 17 percentage points over 2020, This is mainly due to the fact that in 2020, due to the impact of the epidemic, the new land reserve investment of enterprises was only 5.27 billion yuan. By the end of 2021, Financial Street Holdings Co.Ltd(000402) has a total land reserve construction area of 16.515 million square meters and an equity area of 13.29 million square meters, maintaining a high equity ratio. In the case of high capital pressure of private enterprises, maintaining a high equity ratio can leave a certain margin of safety for itself and avoid affecting the follow-up work of cooperative projects due to the financial problems of partners.
II. Operating revenue increased by more than 30% year-on-year, with a net profit margin of 6.5%
In 2021, Financial Street Holdings Co.Ltd(000402) achieved an operating revenue of 24.16 billion yuan, up 33.3% year-on-year. However, with the higher increase of operating costs, the gross profit margin and net profit margin of the enterprise decreased significantly. The gross profit of the enterprise was 51.8%, down 13.0% year-on-year, and the net profit was 1.58 billion yuan, down 28.7% year-on-year. The gross profit margin and net profit margin were 21.4% and 6.5% respectively, down 11.4 percentage points and 5.7 percentage points compared with 2020. Mainly, some high-cost projects of real estate development business were carried forward in 2021, which reduced the overall profit of the enterprise. During the period, the enterprise's real estate development business realized an operating revenue of 21.86 billion yuan, with a gross profit margin of 16.6%, 10.9 percentage points lower than that in 2020.
The decline of net profit margin is significantly smaller than that of gross profit margin, which depends on the good cost control ability of the enterprise. In 2021, the Financial Street Holdings Co.Ltd(000402) three fee expenses totaled 5.65 billion yuan, a year-on-year decrease of 7.4%, and the three fee expense rate was 23.4%, a significant decrease of 10.3 percentage points compared with 2020. However, it should be noted that the roe of the enterprise has decreased from 11.4% in 2018 to 3.8% in 2021. In particular, the leverage of Financial Street Holdings Co.Ltd(000402) is high, but the corresponding high rate of return has not been achieved. It is expected that or with the successful transformation of the industry, the return on net assets of the enterprise will gradually stabilize and rise again.
III. there is still a long way to go to green, and asset disposal will be strengthened in 2022
By the end of 2021, Financial Street Holdings Co.Ltd(000402) although it has achieved partial pressure drop of interest bearing liabilities, the three red lines are still stepping on two lines. The total interest bearing liabilities are 80.1 billion yuan, a year-on-year decrease of 8.4%, the net debt ratio is 146.1%, a decrease of 26.3 percentage points compared with the end of 2020, the asset liability ratio excluding advance receipts is 72.0%, a decrease of 2.5 percentage points compared with the end of 2020, and the cash short debt ratio is 1.4 times, an increase of 0.13 times compared with the end of 2020.
After the three red line policy, in order to reduce liabilities, the group successively transferred assets to the outside world. In 2020, the group negotiated with Beijing CITIC Real estate to terminate the cooperation agreement on plot B of Beijing CITIC City, recovered the early payment price of 8.6 billion yuan, and then recovered about 2.232 billion yuan of cash flow by selling the equity and creditor's rights of fengke center project; In 2021, Financial Street Holdings Co.Ltd(000402) transferred 100% equity and creditor's rights of Beijing Jinfeng Wansheng Real Estate Co., Ltd. to Ping An Insurance (Group) Company Of China Ltd(601318) Life Insurance Co., Ltd., and recovered 3.709 billion yuan; In September 2021, 100% equity and related creditor's rights of Desheng investment, a subsidiary, were transferred at a transfer price of 1.575 billion yuan; In April 2022, Financial Street Holdings Co.Ltd(000402) issued an announcement to sell Financial Street Holdings Co.Ltd(000402) Ritz Carlton Beijing hotel to Financial Street Holdings Co.Ltd(000402) group at a transaction price of 1.08 billion yuan. From the perspective of debt, Financial Street Holdings Co.Ltd(000402) will strengthen asset disposal, promote the revitalization of stock assets and realize the replacement of cash flow in 2022.
