Poly Real Estate (600048): Steady sales growth and investment in the first and second tiers

Poly Real Estate (600048): Steady sales growth and investment in the first and second tiers

Event Poly Real Estate announced operating data for June 2019: In June 2019, the company achieved a contracted area of 409.

630,000 square meters, a decrease of 4 a year.

28%; signing amount 636.

62 ppm, a five-year increase of 5.

76%.

From January to June 2019, the company achieved a contracted area of 1636.

470,000 square meters, an increase of 12 in ten years.

56%; the amount of contract reached 2526.

24 ppm, an increase of 17 in ten years.

33%.

Comments Sales grew steadily in the first half of 2019.

In June 2019, the company achieved a contracted area of 409.

630,000 square meters, a decrease of 4 a year.

28%; signing amount 636.

62 ppm, a five-year increase of 5.

76%.

From January to June 2019, the company achieved a contracted area of 1636.

470,000 square meters, an increase of 12 in ten years.

56%; the amount of contract reached 2526.

24 ppm, an increase of 17 in ten years.

33%, ranking fourth in the top 100 CRIC sales list.

Investment remained stable, and continued to cultivate the first and second tiers.

In June, the 深圳桑拿网 company acquired 14 projects in 11 cities including Shanghai, Nanjing, Hefei, Jiangmen, Qingyuan, Changzhou, Huaian, Cangzhou, Handan, Putian, Tianshui, etc., with an increase of 2.31 million square meters of land acquisition area, a reduction of 32%;The amount of 18 billion US dollars, a year of 5% reduction; the amount of land acquisition accounted for 28% of the current sales amount, 12 percentage points lower than the previous value; the average monthly land acquisition price of 7780 yuan / square meter, accounting for 50% of the average sales price in the same period,The average land acquisition price has increased, mainly due to the increase in the proportion of companies acquiring land in the first and second tiers. In June, the company’s proportion of acquiring land in the first, second, and third tier cities was 23.

3%, 45.

9%, 30.

8%.

From the accumulated data, the company acquired a total of 53.3 billion US dollars in land in the first half of the year, a decrease of at least 50%; the newly-built area reached 8.27 million square meters, which was reduced by 45% each year, and the land acquisition amount gradually accounted for 21% of the sales amount.
Investment suggestion: Poly Real Estate has invested actively in recent years and has abundant land reserves, laying a foundation for the company’s future sales expansion.

The company’s strategic layout of the core city group and accurate product positioning; meanwhile, the company’s strong central enterprise background can help the company to obtain brand premiums, reduce cost capital, and improve the company’s competitiveness.

We expect EPS to be 2 in 2019-2021.

10, 2.

63, 3.

15 yuan, corresponding to PE is 6.

41, 5.

11, 4.

27 times, maintain “Buy” rating.

Risk reminders: The scale of the industry’s sales is expanding; the mortgage loan interest rate is expanding upward; the real estate policy is tightening significantly; the cost of real estate companies’ capital is increasing.