\u3000\u3 China Vanke Co.Ltd(000002) 244 Hangzhou Binjiang Real Estate Group Co.Ltd(002244) )
Deeply plough Zhejiang and base on the whole country. As a leading real estate enterprise in the Yangtze River Delta, the company is deeply rooted in Zhejiang with remarkable brand quality. In the first three quarters of 2021, the company’s performance increased more significantly, realizing an operating revenue of 24.436 billion yuan, a year-on-year increase of 89.43%, and a net profit attributable to the parent of 1.325 billion yuan, a year-on-year increase of 49.08%.
Actively acquire land and consolidate the strategic layout of “three provinces and one city”. In recent years, the company has continued to maintain a positive land acquisition trend. As of 2021h1, the company has added 940000 square meters of land, 55% of the value and equity of new land, 2.34 million square meters of new land capacity building area and rich land reserves. The company focuses on Hangzhou and goes deep into Zhejiang. The saleable value of 2021h1 company’s land reserve accounts for 67% in Hangzhou. Cities other than Hangzhou in Zhejiang province include Jinhua, Ningbo, Jiaxing, Wenzhou and other second and third tier cities with solid economic foundation, accounting for 16% and 17% outside Zhejiang Province.
Good sales performance and high product recognition. In 2021, the company’s traffic sales, equity sales and full caliber sales in Hangzhou were 73.737 billion yuan, 59.473 billion yuan and 104873 billion yuan respectively. The sales ranked among the top in Hangzhou, with significant advantages in regional deep cultivation. At the same time, the company has established five product types and created a standardized product system, which has been highly recognized by the society.
Good credit qualification and smooth financing. After deducting advance receipts, the asset liability ratio of 2021h1 company was 69.13%, the net liability ratio was 91.24%, the cash short debt ratio was 1.62, and the “three red lines” remained at the “green level”. The financing cost of 2021h1 company was 4.9%. In June 2020, united credit rating Co., Ltd. upgraded the main credit rating of the company from AA + to AAA.
Investment advice
The company is deeply rooted in Zhejiang and based on the whole country. Its sales business continues to improve, with good credit qualification and smooth financing. We expect that from 2021 to 2023, the company’s operating revenue will change by 42.1%, 28.2%, 21.5% to 40.638 billion yuan, 52.081 billion yuan and 63.299 billion yuan respectively, the net profit attributable to the parent company will change by 16.7%, 24.4%, 22.8% to 27.15, 33.79 billion yuan and 4.149 billion yuan respectively, and the EPS will be 0.87, 1.09 and 1.33 yuan respectively. Corresponding to the stock price on April 13, the PE will be 8 / 7 / 5 times respectively, covering for the first time, Give “overweight” rating.
Risk tips
Risk of falling profit margin; Regional concentration risk; Real estate policy regulation exceeds the expected risk.
