Vanke A (000002): Steady sales continue to be cultivated in first- and second-tier cities

Vanke A (000002): Steady sales continue to be cultivated in first- and second-tier cities

Event Vanke announced operating data for March 2019: the company achieved contracted sales of 573 in March 2019.

7 trillion, an increase of 13% in ten years; the sales area is 360.

40,000 square meters, a reduction of 1% a year.

From January to March 2019, the cumulative sales amount was 1494.

4 ‰, a year-on-year decrease of 3%; cumulative sales area of 924.

80,000 square meters, a 12% reduction each year.

  Opinions The sales scale maintained steady growth in March.

Vanke achieved contracted sales of 573 in March 2019.

7 trillion, an increase of 13% in ten years; the sales area is 360.

40,000 square meters, a year of 1% reduction; the average sales price is 15,918 yuan / square meter, an annual increase of 14%.

From January to March 2019, the cumulative sales amount was 1494.

4 ‰, a year-on-year decrease of 3%; cumulative sales area of 924.

80,000 square meters, a 12% reduction each year.

According to the list of real estate sales by CRIC, the company ranks second in the industry.

  Increased investment intensity and continued to cultivate first-tier and second-tier cities.

Vanke acquired a total of 13 new projects in March, of which 11 were residential real estate projects and 2 were logistics real estate projects.

The company’s new land project construction area in a single month reached 289.

20,000 square meters, an increase of 44% in ten years; the total cost of land acquisition is 149 trillion, every 16% (excluding logistics projects), the average equity ratio of the amount of land acquisition is 66.

6% (excluding logistics projects).

In March, the company’s average land acquisition price was only 5,137 yuan / square meter, and the cost of land acquisition remained low. From the distribution of various tier cities, the company’s first, second, and third tier land acquisition amounted to 45%, 40%, and 15%, respectively.

From the accumulated data, the company ‘s cumulative land acquisition cost from January to March was US $ 41.1 billion, a decrease of at least 9%; the newly-built area reached 7.48 million square meters, which was reduced by 15%; the company controlled the land 成都桑拿网 acquisition rhythm to ensure that the scale of land reserves continuedPromotion.

  Investment suggestion: As an industry leader, Vanke adheres to the urban layout of “three major metropolitan areas + key cities in the central and western regions”. The sales scale continues to expand, and the strength of land acquisition continues to increase.

At the same time, in terms of diversified business, Vanke has made a forward-looking layout in logistics real estate, property management, long-term rental apartments, commercial real estate and other aspects, and has gradually matured.

The company’s EPS for 2019-2021 is expected to be 3 respectively.

99, 4.

81, 5.

77 yuan, corresponding to PE is 8.

0, 6.

7, 5.

6x, maintain “Buy” rating.

  Risk reminders: industry sales fluctuations; policy adjustments leading to operational risks (shed reform, restructuring, budget policies, etc.); changes in the financing environment (mortgages, development loans, interest rate adjustments, etc.); corporate operational risks (personnel changes, construction, land acquisition, etc.)The risk of exchange rate fluctuations; the monetization of the shed reform is not up to expectations.