\u3000\u3 China Vanke Co.Ltd(000002) 244 Hangzhou Binjiang Real Estate Group Co.Ltd(002244) )
Performance summary: Hangzhou Binjiang Real Estate Group Co.Ltd(002244) in 2021, the revenue and profit increased against the trend, and the annual performance was bright. In 2021, the company achieved an operating revenue of 37.98 billion yuan, a year-on-year increase of + 32.8%; The net profit attributable to the parent company was 3.03 billion yuan, a year-on-year increase of + 30.1%. Affected by the rhythm of settlement, the company realized an operating revenue of 6.18 billion yuan in 2022q1, a year-on-year increase of – 16.8%; The net profit attributable to the parent company was 230 million yuan, a year-on-year increase of – 42.7%.
Strong sales growth, deep cultivation in Jiangsu and Zhejiang, high-quality soil storage. In 2021, the company achieved a sales amount of 169.1 billion yuan, a year-on-year increase of + 24%, ranking 22nd in Kerry’s sales. In April, the year-on-year decline of – 4.7% narrowed. At the end of 2021, the house payment received in advance was 93.5 billion, providing guarantee for future performance. In 2021, the company added 4.69 million square meters of land storage and construction area, with a new land value of 71 billion yuan and an equity ratio of 56.6%. In 2022q1, the company added 15 billion yuan, ranking eighth in Kerui. The company insists on regional deep cultivation. By the end of 2021, Hangzhou accounts for 60% of the soil storage, 25% of the second and third tier cities outside Hangzhou in Zhejiang Province and 15% outside Zhejiang Province. The soil storage quality is high.
The financial performance was stable and the financing cost continued to decline. At the end of 2021, the scale of interest bearing liabilities of the company was 45.8 billion yuan, of which bank loans accounted for 73.8% and direct financing accounted for 26.2%. The company’s asset liability ratio after deducting advance receipts is 65.9%, the net debt ratio is 66%, the cash short debt ratio is 1.5 times, and the “three red lines” remain “green”. Financing costs fell to 4.9%, down 0.3 percentage points from the end of the previous year, at an industry low. The company has abundant credit reserves and good liquidity. By the end of 2021, the company had obtained a total bank credit line of 83.2 billion yuan, an increase of 16% over the end of the previous year, of which the remaining available credit line was 47.6 billion yuan, accounting for 57% of the total credit line. The credit situation and financing capacity are at the forefront of the industry.
Diversified businesses have been steadily promoted, and the five sectors have made concerted efforts. By the end of 2021, the area of office buildings, commercial podiums, community bottom businesses and apartments held by the company for rent was about 350000 square meters, the average rental rate was more than 90%, the rental income was 270 million yuan, and the ending book value of investment real estate was about 6.43 billion yuan. The company has implemented the “1 + 5” development strategy. On the premise of doing a good job in the main business of real estate development, the company has orderly promoted five business segments: service, leasing, hotel, pension and industrial investment.
Profit forecast and investment suggestions. It is estimated that the compound growth rate of the net profit attributable to the parent company from 2022 to 2024 will be 16.5%. Considering the strong sales growth of the company, the high land acquisition intensity in core cities and low financing cost, the company will be given a PE of 9 times the performance in 2022, the target price is 10.08 yuan and maintain the “buy” rating.
Risk warning: completion delivery is lower than expected, land acquisition and sales collection are lower than expected, real estate regulation risk, etc.
