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Sino-Singaporean client of Jingwei, September 1 (Meng Zhang) As of August 31, according to the industry classification of the China Securities Regulatory Commission, the semi-annual reports of 131 A-share real estate companies listed on the stock market, of which 72 have decreased in net profit, which represents almost 55%.
In the first half of the year, more than half of the net profits of A-share real estate companies fell
In terms of net profit, in the first half of the year, 102 of the 131 real estate companies listed in A shares were profitable, representing 78%. In addition, there are 68 real estate companies whose net profit attributable to shareholders of listed companies exceeds 100 million yuan, and 20 currently have net profit of more than one billion yuan. Among them, the three publicly traded real estate companies Vanke, Poly and Greenland ranked among the top three in net profit, with $ 12.508 billion, $ 10.124 billion and $ 8.20 billion, respectively.
From the perspective of changes in net profit, 72 real estate companies experienced a drop in net profit, accounting for almost 55%. Among them, Jinghan shares fell the most, down 5842.3%. There are 49 real estate companies with a net profit drop of more than 50%, which represents almost 40%.
Chen Xiao, an analyst at the Zhuge Housing Data Research Center, noted in an interview with Sino-Singapore Jingwei Client that in the first half of the year, hit by the epidemic, sales offices were closed and construction was delayed. Under the general tone of “no speculation”, real estate companies will maintain a relatively stable development for a longer period of time.
13 real estate companies shortlisted in the “100 Billion Club”
Source: Middle Finger Research Institute
The Zhongzhi Research Institute noted that in the first half of 2020, real estate companies will gradually repair their performance due to the epidemic. Average sales of TOP100 real estate companies were 51.210 billion yuan, a year-on-year decrease of 1.45%, and the market share of TOP100 was 57.5%. Among them, there were 13 real estate companies with sales of more than 100 billion yuan, an increase of 1 over the same period last year (12); 107 real estate companies with 10 billion yuan in sales, a decrease of 14 from the same period last year (121).
In terms of performance targets, of the 28 real estate companies that announced sales targets, the performance compliance rate in the first half of the year reached 40%, among them, Evergrande completed 53.7%, ranking first.
Affected by the epidemic, the threshold value of TOP100 in the first half of the year fell to 11.22 billion yuan. Among them, the threshold value of TOP10 real estate companies is 110.6 billion yuan, an increase of 5.16% over the previous year. Competition between the major real estate companies has become more intense.
Also, according to the People’s Court Announcement Network, 228 real estate companies went bankrupt in the first half of the year.
In Chen Xiao’s view, the leading real estate companies themselves have more advantages in terms of scale and land acquisition and financing. Faced with increasing downward pressure in the market and the impact of the epidemic, they are more resistant to risks. In the case of insufficient cash flow and financing difficulties, the future living environment will be more difficult and the differentiation between real estate companies between and within each camp has been further intensified.
Financing or real estate tightening in the second semester
On August 20, the Ministry of Housing and Urban-Rural Development and the Central Bank held a symposium on key real estate companies. At the meeting it was pointed out that to continue implementing the long-term real estate mechanism, implement the prudential real estate financial management system and improve the commercialization, regularization and transparency of corporate real estate financing, they will cooperate with related parties. Based on the extensive consultation in the initial stage, the department formed the fund supervision and financing management rules for key real estate companies.
New latitude and longitude on data map, photo by Xiong Siyi
Statistics from the Centaline Real Estate Research Center show that in August, domestic and foreign funding for real estate companies across the country skyrocketed, with domestic bonds found to surpass 65.9 billion in a single month, an increase 5.1% compared to the same period in 2019, continuing the data of the financial explosion since July. Especially in the second half of August, real estate companies intensively launched large-scale financing. Overall, from July to August, real estate financing set a new all-time high for the same period.
Zhang Dawei, chief analyst at Centaline Real Estate, told Jingwei’s Sino-Singaporean client that overall, domestic real estate sales have declined and sales of most companies have increased. Real estate is still increasing all financing methods recently to maximize financing as much as possible. To cope with possible future market changes, most real estate companies have accelerated their reserve funds. For companies with relatively high leverage, financial pressure has increased recently.
Yan Yuejin predicts that real estate financing could adjust in the second half of the year. All regions are expected to tighten the chain of real estate regulation at all times, but at the same time they will not blindly suppress real estate companies.
Chen Xiao also believes that in the second half of the year, there is a high probability that the financing of real estate companies will tighten, and the impact will be relatively small for leading real estate companies. However, for real estate companies with high indebtedness and high leverage, operating pressure will increase in the second half of the year. In the future, you can ease the pressure on cash flow by speeding up billing and sales collection.
Annex: Data from the semi-annual report of 131 real estate companies listed in A shares
(Zhongxin Jingwei APP)
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