As of the evening of April 12, a total of 35 listed real estate companies in A-share disclosed their 2021 annual reports. Among them, the overall performance of the property sector is good, and the growth rate of revenue and gross profit of the property sector of many real estate enterprises exceeds that of the main business of real estate development.
Industry insiders said that real estate enterprises are accelerating the exploration of asset light mode and paying attention to the investment in the property sector. “Light and heavy” has become a new trend in the development of real estate enterprises.
Overall performance of real estate enterprises
Among the 35 listed real estate companies that disclosed their annual reports, 25 companies achieved year-on-year growth in operating revenue and 16 companies achieved year-on-year growth in net profit attributable to shareholders of listed companies. Listed real estate companies have maintained a high performance growth rate as a whole.
Shahe Industrial Co.Ltd(000014) , Shanghai Industrial Development Co.Ltd(600748) , Tianjin Jinbin Development Co.Ltd(000897) , Grandjoy Holdings Group Co.Ltd(000031) , Guangzhou Pearl River Industrial Development Co.Ltd(600684) and other listed companies achieved a year-on-year increase of more than 100% in net profit attributable to shareholders of Listed Companies in 2021. The large scale of sales carry forward in 2021 and the low base in the same period in 2020 are the main reasons for the large year-on-year increase of net profit.
Some listed companies disclosed in their annual reports that they increased the promotion and de commercialization of projects in 2021.
Shanghai Industrial Development Co.Ltd(600748) said that Baoshan Gucun project was officially opened in June 2021. It was the first residential sales project of the company to trigger points and lottery. Under the new system of simultaneous review of subscription and purchase qualification, it effectively guided customers. The opening basically realized “sunshine”, with a contract amount of about 3.5 billion yuan.
In terms of land acquisition, many real estate enterprises disclosed in their annual reports that in the first half of 2021, there were signs of recovery in the prosperity of the sales end, the overall financing environment was relatively loose, and the real estate enterprises had a strong willingness to acquire land, resulting in the overall performance of the first batch of centralized land supply, with the trading volume and premium rate ranking first among the three batches of centralized land supply, which was much higher than that of the last two batches. In the second half of 2021, the heat of the land market decreased and the pace of land acquisition by real estate enterprises slowed down.
property sector performed well
It is worth noting that during the reporting period, the performance of the property sector of listed real estate companies was good, and the revenue and gross profit growth of the property sector of China Vanke Co.Ltd(000002) , Shenzhen Properties & Resources Development (Group) Ltd(000011) and other real estate enterprises exceeded that of the main real estate industry.
Taking Shenzhen Properties & Resources Development (Group) Ltd(000011) as an example, the company achieved an operating revenue of 4.492 billion yuan in 2021, with a year-on-year increase of 9.44%; The net profit attributable to shareholders of listed companies was about 1.004 billion yuan, a year-on-year increase of 25.72%. Among them, the real estate business realized an operating revenue of 3.131 billion yuan, a year-on-year increase of 8.14%, accounting for 69.70% of the total revenue; The property management business realized an operating revenue of 1.185 billion yuan, a year-on-year increase of about 10.70%, accounting for 26.37% of the total revenue. The gross profit margin of property management business was 18.31%, an increase of about 3.6 percentage points over the same period last year.
Shenzhen Properties & Resources Development (Group) Ltd(000011) said in the 2021 annual report that the company is accelerating the completion of inventory and evaluation of existing properties and strengthening management. In the future, it will gradually expand the scope of leasing business and improve the development capacity of property leasing. On this basis, it will gradually shift the focus of industrial ecological operation to science and technology parks.
Some companies have increased investment in science and technology in the property sector to improve the overall competitiveness of the property sector.
Recently, the reporter visited Jinyu investment property management group, a subsidiary of Bbmg Corporation(601992) company, and learned that Jinyu investment property management group has upgraded the services of industrial parks by carrying out urban renewal, Cultivating Science and technology industries, increasing investment in science and technology, providing application scenarios and establishing science and innovation funds.
In an interview with China Securities News, Li Junli, deputy general manager of Jinyu investment property management group, said that in order to realize the transformation of old and new kinetic energy and introduce science and innovation enterprises, Bbmg Corporation(601992) specially established science and innovation equity investment fund to invest in enterprises with high growth and high development potential. “Although the initial scale of the fund is only 200 million yuan, it will change the traditional service mode, break through the single leasing relationship with the enterprises in the park, and deeply participate in the growth of the enterprises in the park.”
Seazen Holdings Co.Ltd(601155) said in the annual report that benchmark real estate enterprises continue to strengthen the layout of commercial real estate. As an important carrier of consumption, commercial real estate has become the cross cycle direction of many real estate enterprises. The company always adheres to the “residential + commercial” real estate two wheel drive strategy, and residential and commercial are coordinated and complementary.
According to the data of China Index Research Institute, in 2021, the average area of operating properties held and operated by the top 100 representative enterprises of commercial real estate was 4.646 million square meters, a year-on-year increase of 13.7%. In 2021, the average operating property rent and operating service income of top 100 representative enterprises was 2.87 billion yuan, a year-on-year increase of 20.2%.
industry will gradually recover
Regarding the development prospect of the industry, Grandjoy Holdings Group Co.Ltd(000031) said in the annual report that in terms of commercial real estate, with the continuous recovery of China’s consumer market and the continuous improvement of entity business intelligence operation and comprehensive service level, the passenger flow in shopping centers gradually picks up, the commercial real estate market continues to show an overall recovery trend, and the rent level of core business districts will maintain an upward trend. At the same time, real estate enterprises are accelerating the exploration of asset light mode. In terms of residential real estate, the industry is expected to gradually pick up.
Guo Qiang, deputy secretary of the Party committee of Jinyu real estate group, said in an interview with the reporter of China Securities News that from the aspect of land acquisition, the state of “hot in the South and cold in the north” of the real estate industry has not changed; From the perspective of new real estate supply, the state of “hot in the South and cold in the north” is also difficult to change in the short term The purchasing power of these cities is higher than that of the first tier cities. Jinyu real estate group will not consider sinking the market in the short term. For the real estate industry, with the policy adjustment of many places and the gradual liberalization of the control of pre-sale funds, the sales of real estate developers will gradually improve.
Looking forward to 2022, Seazen Holdings Co.Ltd(601155) said that under the general tone of “no speculation in housing and housing”, the regulatory policies will increase the support for rigid demand and improving housing demand, and the market is expected to return to a stable state and move towards a virtuous circle. Real estate enterprises should focus on fine management, improving quality and efficiency, simultaneously renting and selling, and making efforts through multiple channels, so as to realize the balanced and steady development of scale, benefit and risk.
