\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 048 Poly Developments And Holdings Group Co.Ltd(600048) )
Core view:
In 2021, poly’s sales scale increased steadily and maintained a leading position in the industry. Among them, 17 cities had sales of more than 10 billion, and the deep cultivation effect was remarkable. At the same time, while maintaining financial stability and healthy cash flow, the company obtains a large number of low-cost and high-quality land, which will promote the repair of future profit margin.
I. the leading position of the industry is stable, and the promotion of multiple business formats helps improve the performance
In 2021, poly realized a sales amount of 534.93 billion yuan, a year-on-year increase of 6.4%. During the year, the total sales amount of the company in the Pearl River Delta and Yangtze River Delta exceeded 280 billion yuan, accounting for 53%. We believe that the company’s sales scale and operating revenue can grow steadily in the long term for two reasons: first, adhere to the determination of investment. The company adheres to the deep cultivation strategy of “core city + Urban Agglomeration”, and the total expansion amount of the Pearl River Delta and Yangtze River delta accounts for 54%. Second, the real estate ecological business continued to expand. Poly’s ecological business includes property, commerce, wine management, long-term rental apartments and real estate finance, with an increase in scale compared with 2020.
II. Actively replenish low-cost and high-quality resources and have stable profitability
In the case of a general decline in the profit margin of the industry, the gross profit margin of the company was 26.8%, a year-on-year decrease of 5.8 percentage points, and the net profit margin was 13.1%, a year-on-year decrease of 3.4 percentage points. However, the profit margin of the company will be gradually restored. The reason is that in the fierce competition of the first batch of centralized land supply, the company maintains its investment determination, does not chase high and does not blindly follow. When the transaction heat of the second batch and the third batch decreases and the market returns to rationality, the company quickly increases its investment and obtains low premium plots in Guangzhou, Nanjing, Xiamen and other cities. The average land acquisition price for the whole year is 6821 yuan / m2, a year-on-year decrease of 8%.
III. The financing cost decreased 31bp and the financial structure remained healthy
The company’s cash flow maintained a healthy level, realized the return of funds of 502 billion yuan in the whole year, with a return rate of 93.8%, and maintained a positive net operating cash flow for four consecutive years. During the year, 8.69 billion yuan of corporate bonds and 10 billion yuan of medium-term notes were issued, with an average financing cost of 4.46%, a decrease of 31bp compared with 2020, and continued to maintain the leading edge in the industry. While pursuing scale growth, the company maintains a healthy financial structure. All indicators meet the “three red lines” medium and green enterprise standards.
