Sunac China disclosed its first half of 2019 performance report.
On August 22, Sunac China disclosed its first half of 2019 performance report. According to the announcement data, Sunac achieved operating income of 76.84 billion yuan in the first half of the year, up 64.9% year-on-year; net profit of home fell by 10.29 billion yuan, up 61.7% year-on-year, and the rapid growth in the past is releasing profits. However, in the first half of this year, Sunac’s contracted sales amounted to 214.16 billion yuan, a year-on-year increase of 11.8%. There was a clear sign of slowdown, and it also fell to one place in the industry rankings.
Sun Hongbin, Chairman of Sunac China Board of Directors, repeatedly proposed to control risks in the performance meeting. In the first half of 2019, Sunac did some mergers and acquisitions, but it basically stopped after May, and there was no clear land acquisition in the second half of this year. aims.
(2019 Interim Results Conference)
Core financial indicators rose but sales growth declined
From 2016 to 2018, Sunac’s revenue growth rate was 88%, and sales increased from 155.31 billion yuan to 460.83 billion yuan, achieving a compound growth rate of 75%, making it the fastest growing industry. One of the businesses.
In the first half of 2019, the core financial indicators of Sunac are still eye-catching. The operating income for the first half of the year was 76.84 billion yuan, a year-on-year increase of 64.9%; the net profit of the mothers was 10.29 billion yuan, a year-on-year increase of 61.7%. Excluding the business combination income and its amortization, financial assets and gains and losses from changes in fair value of investment properties, and asset impairment losses of non-core businesses, the net profit attributable to the mothers was 12.66 billion yuan, a year-on-year increase of 128.4%.
But at the same time there are signs of a slowdown in sales growth. In the first half of the year, Sunac achieved contracted sales of 214.16 billion yuan, a year-on-year increase of 11.8%, which was overtaken by Poly Real Estate.
At the performance conference, Sun Hongbin said that the strict control of the financing terminal will be normalized, which will have a very big impact on the property market. Some projects that are not doing well will have liquidity problems.
In the second half of 2019, Sunac is expected to have more than 420 projects on sale, with accumulated sales resources exceeding 570 billion yuan. Sun Hongbin’s goal is to keep the top five positions.
Slow down the land
The data disclosed by Sunac China Daily revealed that as of August 22, Sunac’s total land bank area was approximately 213 million square meters, and the equity land reserve area was approximately 142 million square meters. The corresponding value is expected to be approximately 2.82 millionThe average land cost is about 4,307 yuan / square meter.
Sun Hongbin judged that the overall land market is in a downward channel this year. The low point is at the end of this year or next year. In the second half of the year, Sunac did not have clear land acquisition targets, and only some projects that meet the strategic standards.
Key drop lever
In the first half of the year, Sunac’s net debt-to-asset ratio was 18.9%, up 3.7 percentage points from the end of last year. The gearing ratio also rose to 67.3%, and debt leverage increased.
Wang Chuangde, CEO of Sunac China, said that this year, next year, and the future, the decline in the company’s liabilities is one of the important tasks of the management. The decline in the long-term debt ratio is certain.
As of the end of June 2019, Sunac’s book receipts were 138 billion yuan in cash, and the interest-bearing liabilities due to rigid maturity were approximately 44.2 billion yuan. The book-bearing cash coverage exceeded the rigid interest-bearing liabilities in the second half of the year by 3.1 times. However, among the book funds, there are 38.76 billion yuan of restricted funds, and the actual liquidity coverage exceeds 1.1 times the interest-bearing liabilities due within one year. There is not much security.
Inventory said that in the current land bank, more than 83% of the land bank is located in the first and second tier cities, which will become an important support for Sunac to achieve rapid sales, release of operating cash flow and profits, and Maintaining adequate liquidity and continued decline in leverage provides protection. At the same time, Sunac will strictly control land investment and take the land cautiously.