Our reporter Li Ruina Report from Shanghai
Recently, New Town Holdings Group Co., Ltd. (601155.SH, hereinafter referred to as "New Town Holdings") disclosed its business briefing for March and the first quarter of 2021.
The briefing shows that in March, Xincheng Holdings realized a contracted sales amount of approximately 20.554 billion yuan and a sales area of approximately 1,911,800 square meters. On the whole, from January to March this year, the company achieved a total contracted sales of approximately 49.647 billion yuan, a year-on-year increase of 60.25%; the cumulative sales area was approximately 5.1056 million square meters, a year-on-year increase of 78.63%.
Regarding the rapid increase in performance, Xincheng Holdings told the reporter of China Business News that this was due to the good performance of sales and completion in the first quarter, as well as the continuous rental income of commercial projects dominated by Wuyue Plaza. As of March 31, 2021, the number of open Wuyue Plaza and entrusted management projects held by New Town Holdings reached 100.
Heavy warehouse and land storage layout
From the industry's perspective, the growth of Newtown Holdings' performance in the first quarter of 2021 is a direct manifestation of its continued release of revenue dividends in 2020.
annual report shows that in 2020, Xincheng Holdings will realize operating income of 145.475 billion yuan and realize net profit attributable to shareholders of listed companies of 15.256 billion yuan, an increase of 69.46% and 20.56% respectively over 2019. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 13.056 billion yuan, a year-on-year increase of 30.80%.
In review, the high performance of New Town Holdings is due to its growth logic of stepping on the rhythm of the market.
data shows that from 2015 to 2018, Xincheng Holdings obtained a large amount of low-priced land countercyclically. The land acquisition intensity was 74.4%, 82.4%, 85.2%, and 50.3% respectively. Due to the sinking of third- and fourth-tier cities, the area From a point of view, compared with the same period, the land acquisition intensity rose to 297.7%, 218.9%, 268.3%, and 215.9% respectively.
Nowadays, grasping the expansion of land bank during the land acquisition window is still the "golden rule" for the expansion of Xincheng Holdings' territory.In this regard, New Town Holdings stated that it has recently acquired 11 high-quality land parcels in Tianjin, Suzhou, Hangzhou, Nanchang, Zhenjiang, Huai'an, Taizhou, Tai'an, Tangshan, Yantai and other places.
In fact, from January to February this year, Suntown Holdings has added more than 10 high-quality projects, and continues to focus on the Yangtze River Delta and other core city clusters. Under the fast-paced layout of the land market, Xincheng Holdings pointed out that while the company continues to promote the nationalization process, it will further increase the layout of high-level cities.
According to the "Top 100 Newly Added Value of Chinese Real Estate Companies in the First Quarter of 2021" released by the Creat Research Center, New Town Holdings added 38.59 billion yuan in land value and 3.848 million square meters of new land construction area in the first quarter. They are all ranked in the TOP10 list, with sufficient replenishment and strong growth momentum.
According to the information in the 2020 Xincheng Holdings annual report, as of the end of 2020, the total land bank of Xincheng Holdings has reached 143 million square meters, and most of them are located in key first- and second-tier cities and strong third- and fourth-tier cities in the Yangtze River Delta, providing a solid guarantee for the company's subsequent development .
leverages commercial counterattacks
Overweight land reserves to plan the development of the residential business also hides Xincheng Holdings' cautious consideration of avoiding the "three red lines".
According to relevant policies and regulations, the "three red lines" are that the debt-to-asset ratio after excluding advance receipts is greater than 70%, the net debt ratio is greater than 100%, and the cash short-term debt ratio is less than 1.0 times. From this point of view, Xincheng Holdings is just stepping on the first red line. For this reason, the commercial sector, which is regarded as an important growth engine of the company's performance along with the residential business, has also been placed high expectations by the market.
The briefing shows that in the commercial sector, New Town Holdings mainly relies on the property support of several Wuyue Plazas across the country. In the first quarter of 2021, the total commercial operating income of Xincheng Holdings was 1.92 billion yuan, including rents, management fees, parking lots, diversified operations and other sporadic management fees for shops and shopping malls, which was comparable to the 969 million yuan in revenue in the first quarter of 2020. Ratio, the growth is close to doubling.
In the future, Suntown Holdings will continue to focus on and tap the potential of the commercial sector. At present, the number of open Wuyue Plaza and entrusted management projects held by New Town Holdings has reached 100.According to the 2020 annual report, Xincheng Holdings plans to open 30 Wuyue Plazas in 2021. By the end of 2021, the total number of openings will reach 130, and the total annual commercial operation revenue target is 8.5 billion yuan.
At the same time, the sound financial performance behind the performance has been recognized by international rating agencies one after another. On March 31, Standard & Poor's, one of the three major international rating agencies, announced that it had upgraded the long-term issuer credit rating of New Town Development (01030.HK) and its subsidiary, New Town Holdings, from "BB" to "BB+", with a "stable" outlook . At the same time, Standard & Poor's confirmed the "BB" long-term issuance rating of the secured senior unsecured notes of Metro Holdings.
In fact, before Standard & Poor's, international rating agencies Moody's and Fitch have both upgraded the subject rating of Xincheng. The recognition of international rating agencies reflects the long-term confidence of the capital market in the continued growth of the performance and the sound financial performance of the new city.
Guosen Securities stated in its research report that Xincheng Holdings' revenue and net profit in 2020 will grow steadily, which is in line with expectations; commercial empowerment is actively acquiring land, deep plowing and focusing on abundant land reserves; commercial real estate expansion and layout, entering the era of 100 stores in operation; Financially sound, the rating is upgraded. Based on this, it is estimated that the company's net profit attributable to the parent in 2021 and 2022 will be 18 billion yuan and 21.2 billion yuan, respectively.
Zhongtai Securities commented and pointed out that under the "commercial + residential" two-wheel drive model of New Town Holdings, the advantages of low-cost land acquisition and the continuous cultivation of deep-growing shopping malls form a benign complement in the business format, forming a rapid turnover of funds for sales and shopping The center continues to accumulate a sustainable and steady growth path that contributes to the continuous and steady growth of cash flow.
(Editor: Shi Jing, proofread: Yan Jingning)
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