Annual Report Review|Brande Real Estate: Steady growth in performance, back to A worth looking forward to
Small Q Guide : The nation's largest outlet operator, completed in 2018 or completed A-share listing.
Wen/Kerui Research Center Shen Xiaoling, Liu Min
Performance: general increase, stable target
In 2016, Capital Land's contracted sales amount reached 45.51 billion yuan, a year-on-year increase of 40%. The increase in contract amount compared with the average of 50% of the top 100 real estate enterprises in 2016 is a general level. It is worth mentioning that the average contract price is 20,000 yuan / square meter, an increase of 72%. Mainly due to the growth of high-end projects, the high-end product line of Tianyu and Ruirui, which were built during the year, catered to the needs of the market and achieved breakthroughs in sales performance. Among them, Beijing Tianyu Mansion and Tianyu Xishan, which were launched in 2016, achieved a contractual value of 2.2 billion yuan and an average contract price of over 70,000 yuan/m2.
In terms of sales targets, the company proposed to sell 50 billion contracts in 2017, which is more conservative and stable. The company will stock more than 72 billion yuan in the whole year, of which 32.7 billion yuan will be supplied at the end of 2016, and the new source of goods will be 39.7 billion yuan. According to the sales target, the annual conversion rate can reach 69%. Since 66% of the annual supply is located in the Beijing-Tianjin-Shanghai region, the market is hot and the rate of removal is guaranteed. In 2017, the company will focus on Beijing Tianshan Xishan, Beijing Daxing Qingyuan Road Project, Shanghai Tianyu Riverside Project, Tianjin Metropolis and other projects.
The concentration of core cities has increased and the contribution rate of performance has further increased. In 2016, the five core cities (Beijing, Shanghai, Tianjin, Chongqing, Chengdu) and Sydney, Brisbane achieved contracted sales of 43.09 billion yuan, accounting for 95%, an increase of 8 percentage points over the previous year. Among the five core cities, sales in Beijing, Shanghai and Tianjin increased significantly, up 77%, 27% and 61% respectively from the previous year. Chengdu and Chongqing remained basically unchanged. In addition, sales in Beijing, Tianjin and Shanghai accounted for 74% of total sales, an increase of 10% over the previous year. It shows that the first performance growth is mainly from Beijing, Shanghai and Tianjin, and the weight of the Group's sales amount has further increased. Among them, the Shanghai market achieved a major breakthrough, and contract sales exceeded 5 billion. As Shanghai's performance increased, the Group's business distribution also adjusted, and Shanghai was listed separately in the financial statements.
Overseas real estate has steadily advanced and entered Melbourne this year. In terms of overseas real estate, the company continues to dig deep into Australia, and in 2016, the new city of Brisbane, is expected to enter Melbourne this year. It was first launched in Australia in 2014. In the following year, it cooperated with local Australian developer Dyldam to develop 3 projects with a sales volume of 5.1 billion yuan. In 2016, its performance in Australia increased to 5.9 billion yuan, a year-on-year increase of 16%.
Land: Beijing, Tianjin and Shanghai to increase, speed up the layout of commercial real estate business
The layout of the core cities, the proportion of Beijing and Shanghai increased. In 2016, the first innovation increased 13 land projects, the newly added land amounted to 18.1 billion yuan, down 26% year-on-year; the total land area of ​​new land increased by 47% year-on-year. Among them, there are 6 plots in real estate development and 11 plots in Outlets.
In terms of real estate development, the proportion of Beijing and Shanghai has further increased. The five core cities and Australia accounted for 96%, an increase of 1 percentage point over the previous year. Beijing and Shanghai accounted for 75%, an increase of 5 percentage points over the previous year. In the case of Shanghai's soil auction prices continue to rise, the first initiative still increased investment in Shanghai's land. Following the first implementation of the Greater Shanghai Strategy in 2015, we acquired 8 plots in Songjiang, Qingpu and Jiading in Shanghai, including the Pingliang Community Block in Yangpu District, which is located in the inner ring of Shanghai. The project is under the creation of Tianyu Riverside. “Residential + commercial†is regarded as the first core project in Shanghai; it has continued to increase in 16 years, and has won four major plots including Shanghai Qingpu Xujing Project, Zhoupu Project and Pudong Xinchang Project. It is worth mentioning that the first two land projects in Shanghai, choose to participate in cooperative development by means of shareholding, respectively, the Shanghai Zhoupu Diwang project won by Poly Real Estate, and the shareholding of COFCO Real Estate Shanghai Pudong New Site.
On commercial real estate, continue to increase the layout of Outlets . The Group relied on the commercial real estate development platform to create a large-scale expansion of the business in Outlets . In 2016, it acquired 5 fast outlets in Xi'an, Zhengzhou, Jinan, Hefei and Chongqing. In addition, the three outlets of Fangshan, Huzhou and Kunshan, which have been successfully opened, have been injected into the first place. So far, BCL has placed 13 outlets in the country and has become the largest outlet operator in China. Among them, the opened Fangshan, Wanning, Huzhou and Kunshan Outlets projects achieved a total turnover of about 2.4 billion, which became an important source of contribution to the Group's performance. It is worth mentioning that Shouda has successfully introduced Ocean Group and KKR as strategic shareholders, which has added financial support for Outlets' national expansion.
Earnings: Operating income increased significantly, gross profit margin and core net profit declined slightly
In 2016, the first total realized revenue was 20.35 billion, up 27% year-on-year, of which real estate sales were 19.6 billion yuan, up 27% year-on-year. Operating income and real estate sales revenue achieved simultaneous growth. However, 16-year net profit was 2.88 billion, down 3.6% year-on-year. Among the five core cities, Beijing had the highest net profit of 630 million. The net interest rate was 14%, down 5 percentage points from the previous year. The core net profit margin was 4.5%, which was also slightly reduced. It shows that although the operating income has increased in recent years, the profitability is weak.
Capital operation: financial leverage continues to increase, the debt structure is still reasonable, and there is no debt repayment pressure.
Since the first 13 years, the first net debt ratio has continued to climb, reaching 132% by the end of the 16th period, indicating that the company's financial leverage has increased . Although the net debt ratio is 60%-80% higher than the safe value of the company, it is still within the controllable range from the perspective of the company's debt structure. By the end of 2016, BCL had held a cash of 17.9 billion yuan, which was fully indebted with short-term debt, and the long-term and short-term debt ratio was 2.22, most of which were debts that needed to be repaid after one year.
Of course, BCL can increase its leverage. In 16 years, it still spent 18.1 billion yuan to acquire land. There are two main reasons. First, BCL is backed by the Capital Group , and the parent company with strong financial strength is the guarantee. Second, the group is in 2016. If you get the AAA rating of China Credit Rating , if you can return to A smoothly, the financing structure is bound to be further improved.
Power engine: A-share listing and group support, the future is worthy of attention
A-share listing has made significant progress and is expected to return to A in 2018. Officials revealed that the company successfully submitted an IPO application in November 2016 and is currently ranked at 273. In view of the speed with which the CSRC has speeded up the approval process, it is possible that the first initiative will be able to return to A in the first half of 2018. The success of Back to A will become an important financing channel for the Group, and the financing cost will also be reduced. It is worth mentioning that the first successful evaluation of the China Credit Rating AAA will help the company's financing to further reduce.
Thanks to the support of the Group, the first-level land development has broad prospects. In order to reduce the cost of land acquisition, the company pioneered the use of state-owned enterprises and actively expanded the scale of land development in the process of participating in the transformation of shanty towns. In 2016, the Group made frequent purchases in the primary land market, and successively obtained several projects such as the renovation of Hujialou shantytown, Beijing Shijingshan, and the first-level development of Daxingzhuang land in Pinggu District. With the support of the parent company, the Hujialou shantytown was completed in the core area of ​​Beijing CBD. It covers an area of ​​24 hectares and has a huge volume. It has become the first harvest in the first-tier land market and is regarded by the group as the core of the future. One of the resources. According to the company's plan, in the future, we will build a concept of future technology city around the construction of affordable housing.
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