Cccg Real Estate Corporation Limited(000736)
Core view:
In 2021 Cccg Real Estate Corporation Limited(000736) actively promoted marketing activities to promote the steady growth of the company's sales amount, which led to the rapid growth of contract liabilities and laid the foundation for future performance growth. The company's short-term debt repayment pressure increases, but as a central enterprise, it has strong potential debt repayment ability. Even if it tries its best to reduce leverage in the future, sufficient value can ensure the sustainable development of the company.
I. The sales amount has grown steadily, and the profit margin is expected to rebound
In 2021, Cccg Real Estate Corporation Limited(000736) achieved a full-scale sales amount of 56 billion yuan, an increase of 5.1% year-on-year, and achieved a collection of 59.1 billion yuan, an increase of 56.4% year-on-year. We believe that we should start from two aspects to show the company's high profitability. One is the horizontal comparison between enterprises. Enterprises that can maintain stability or relatively high level in the industry still have strong profitability; The second is the vertical comparison on the timeline. When the current land cost is low, it can bring higher profits to the company in the future. Another indicator affecting the company's profit margin is the expense rate, which is reflected in the increase of interest expenses and sales expenses.
II. Abundant goods value and investment focus on deep cultivation of the city
In the middle of 2021, 24 new projects were acquired by means of over revenue M & A, capital increase and bidding, auction and listing, with a new land reserve of more than 3.7 million square meters and the remaining 17.877 million square meters of exploitable land, which fully meets the needs of the company's future development and makes up for the defect that the company's high debt repayment pressure limited by the three red lines can no longer realize the rapid growth of interest bearing liabilities. Even if CCCC reduces investment and shifts its focus to reducing liabilities, Its value can also meet the stable improvement of the company's sales performance.
III. the pressure of short-term debt increases, but the potential solvency is strong
In 2021, the performance of the three red lines of CCCC was poor, mainly due to the rapid increase of short-term interest bearing liabilities. However, we believe that this does not mean that the company's solvency is weak. As a central enterprise, CCCC has strong financing advantages. Under the overall weak financing environment in 2021, CCCC successfully registered a storage rack of 2 billion yuan with AA + credit for the first time and successfully issued 1.1 billion yuan through the balance of house purchase ABS, Constantly expand new financing methods to support the sustainable development of the company.
