Production | Tiger Sniff Research
Author | Ding Ping

On March 17, Vanke released its 2019 results: in 2019, it realized operating income of 367.894 billion yuan, an increase of 23.59% year-on-year; realized net profit attributable to its mother of 38.872 billion yuan, an increase of 15.10%; year-on-year sales of 630.84 billion yuan A year-on-year increase of 3.9%.

Besides the steady growth of revenue, the slowdown in sales growth, the decline in profitability, and the increase in financial leverage are also evident. In 2018, Vanke Yuliang aimed to “live” and was worried about peace. Is it now a real existence?

I. How is Vanke’s sales performance?

In 2019, the real estate industry continued the main tone of “houses are used for living, not for speculation.” Housing companies have slowed down the pace of investment, they are cautious in land acquisition, and the growth rate of sales of commercial housing across the country has dropped significantly. In the context of the current market cooling, Vanke’s sales growth rate has fallen sharply, and the pace of land acquisition has slowed significantly.

Sales increased, but the growth rate dropped sharply

From historical data, Vanke’s sales and sales area growth rate have been in a downward trend since 2017. In 2019, Vanke achieved sales of 630.84 billion yuan and 41.12 million square meters, respectively, a year-on-year growth rate of 3.9% and 1.8%, a record low.

Data source: company announcement

Data source: company announcement

In January 2020, Vanke achieved sales of 54.91 billion yuan, an increase of 12.34% year-on-year, and a decrease of 4.19% year-on-year; sales area of ​​3.335 million square meters, an increase of 54.97% year-on-year, and a decrease of 19.60%. In summary, the company’s single-month sales weakened month-on-month due to the influence of the Spring Festival and the epidemic.

Ground strength has dropped somewhat

Vanke’s efforts to pick up the land have begun to decline since 2016, and it has become more cautious about holding land. In 2019, Vanke’s land acquisition area was 29.96 million square meters, a year-on-year decrease of 36%.

Data source: company announcement

Vanke in 2020 1