Although the decline recorded the lowest value among the top three, compared with its own, this value is hardly optimistic.
Viewpoint In mid-June, many real estate companies including Vanke, Zhonghai, and Longfor have released monthly sales data.
On the whole, in May, the month-on-month data of many real estate companies have stopped falling and rebounded, showing a significant improvement, but the year-on-year data still has a certain decline, and the decline is still expanding.
On the evening of June 12, Poly Development announced a sales briefing for May 2022.
Similar to most situations in the industry, Poly Development achieved a contracted area of 2.4355 million square meters in May, an increase of 11.62% month-on-month and a year-on-year decrease of 37.42%; the contracted amount was 38.003 billion yuan, a year-on-year decrease of 36.04%.
Cumulatively, from January to May 2022, Poly Development achieved a contracted area of 10.1562 million square meters, a year-on-year decrease of 29.39%; the contracted amount was 159.218 billion yuan, a month-on-month increase of 24.52% and a year-on-year decrease of 32.22%.
In fact, in the past month, multiple favorable policies have been introduced repeatedly from the central to the local governments to promote property market sales. On the whole, the property market sales have shown marginal improvement, but there is still a distance from the expected Xiaoyangchun.
According to a research report released by the Opinion Index, from January to May, the top 100 real estate companies achieved a total equity sales of 1,852.5 billion yuan, a year-on-year decrease of 54.4%, an increase of 1.1 percentage points from January to April.
At the shareholders’ meeting held last month, Liu Ping, chairman of Poly Development, mentioned: “This year should be the most special period since we have been in this industry for 30 years.”
Sales run low
Looking at the industry-wide data, according to the opinion index statistics, in the first five months of 2022, Poly Development won the top spot with a full-caliber sales amount of 159.2 billion yuan, second only to Country Garden (201.19 billion yuan) and Vanke (167.34 billion yuan) .
In addition, in the first five months, there were only three real estate companies with sales exceeding 100 billion yuan, a decrease of 12 from the same period last year.
Among the top three, Poly Development’s decline was relatively small. According to full-caliber data, Country Garden and Vanke decreased by 43.18% and 41.4% year-on-year during the period.
In contrast, Poly Development achieved a contracted area of 2.4355 million square meters in May, an increase of 11.62% month-on-month and a year-on-year decrease of 37.42%; the contracted amount was 38.003 billion yuan, a year-on-year decrease of 36.04%.
From January to May 2022, Poly Development achieved a contracted area of 10.1562 million square meters, a year-on-year decrease of 29.39%; the contracted amount was 159.218 billion yuan, a month-on-month increase of 24.52% and a year-on-year decrease of 32.22%.
Although the decline recorded the lowest value among the top three, compared with itself, this value is hardly optimistic.
According to the statistics of Viewpoint New Media, in the past five years, Poly Development’s sales amount of 38.003 billion yuan in May was only higher than the 35.721 billion yuan in the same period in 2018. If the three-year period since the outbreak of the new crown epidemic is the benchmark, it will be the same period in the past three years. minimum value.
Data sources: corporate announcements, opinion index collation
In the first two years, the form of real estate policies has been tightened, and urban control such as sales restrictions, loan restrictions, and purchase restrictions are superimposed.
At the previous shareholders’ meeting, the management of Poly Development mentioned that in terms of regulation and control policies, the most obvious manifestation was at the credit and property market levels last year. “The credit policy has been tightened significantly since June.” He said that during the same period, domestic Few cities have tightened restrictions on purchases and sales.
Liu Ping mentioned: “In 2021, the national commercial housing sales area will be 1.79 billion square meters, and the sales will be 18.2 trillion yuan, which is basically the same as the same period last year.” But the main credit is in the first half of the year. Since the second half of last year, the market has experienced some fluctuations. The decline was larger than expected.
However, at this extremely special stage, Poly Development still maintains a relatively stable momentum, and the company’s management also mentioned, “At least we can outperform our competitors and outperform ourselves… We are better than our peers (generally ) the decline will be smaller.”
It is understood that at the beginning of this year, the company’s contracted sales have returned to the top three in the industry, and it has always maintained the top three.
At the same time, in the past month, a large number of favorable policies have been introduced from the central to local governments to stimulate consumption in the property market. Among them, on May 15, the central bank and the China Banking and Insurance Regulatory Commission proposed that the reference standard of the first set of commercial personal housing loan interest rates be lowered by 20 basis points; on May 20, the central bank authorized the National Interbank Funding Center to announce that the 5-year LPR will be reduced from 4.6% It was cut by 15 basis points to 4.45%, the largest drop since the LPR bundled home loan rates.
In addition to the reduction in interest rates, more than 100 cities across the country have successively issued favorable policies, with restrictions on purchases and reductions in down payment ratios.
Analysts also mentioned that favorable policies are frequent, and the property market is expected to recover in the second half of the year.
Accelerate land acquisition financing
Compared with the low sales, Poly Development has been more active in land acquisition in the past month, and this company is present in many cities for centralized land supply.
On the day of the announcement of the sales data, Poly Development also disclosed the newly added land bank in May. During the period, the company added 4 new real estate projects, which are located in Foshan, Nanchang, Xiamen and Fuzhou, and the total price to be paid is 2.817 billion yuan.
Among them, the company won the residential land on the east side of Aixi South Road, Qingshanhu District, Nanchang City on May 18, with a land area of 56,900 square meters and a planned floor area ratio of 113,800 square meters. The price to be paid is 831 million yuan.
In the second round of centralized land supply in Fuzhou on May 27, the plot on the west side of Yuefeng North Road, Jin’an District, Fuzhou City was won. The land area is 16,100 square meters, the planned floor area ratio is 35,400 square meters, and the transaction price is 812 million yuan. The premium rate is 6.28%.
In fact, since the beginning of this year, Poly Development’s overall land acquisition momentum has stabilized. A total of 25 land acquisitions were acquired in the first five months, with a total land area of 1.1442 million square meters and a total construction area of 2.814 million square meters. The total land price in the first five months was 31.043 billion yuan.
Poly Development has basically continued the past rhythm of land acquisition. According to the opinion index statistics, in 2021, a total of 145 new parcels of land will be added (61 in the second half of the year) according to the announcement caliber, with a total construction area of about 27.22 million square meters, corresponding to a total expansion cost of about 185.68 billion yuan, and the equity payment is about 133.85 billion yuan.
Land is the cornerstone of the development of real estate enterprises, and active acquisition of land resources can provide a strong guarantee for subsequent operations.
Data sources: corporate announcements, opinion index collation
Not only land acquisition, but also in terms of financing, Poly Development has also maintained a positive trend in the past month.
It is understood that on May 7 and May 9, Poly Development was approved to issue 2.5 billion yuan and 5 billion yuan of medium-term notes in succession; on May 20, it planned to issue 3 billion yuan of green medium-term notes. According to the final issuance results, the coupon rate is only 2.8%, which is a low value in the industry.
A week later, the company issued another 3 billion yuan of corporate bonds, the first variety of 5-year term, the coupon rate of 2.89%; the second variety of 7-year term, the coupon rate of 3.40%.
Data sources: public reports, opinion index collation
On the one hand, the recovery of financing is due to the stable performance of Poly Development. In the past month, many institutions such as Kaiyuan Securities and Tianfeng Securities have given buy ratings to the company.
On the other hand, since May, the policy level has relaxed the financing of housing enterprises.
It is understood that on May 16, three private housing companies, Country Garden, Longfor, and Midea Real Estate, were selected by regulators as demonstration housing companies and completed bond issuance. A week later, the Shanghai Stock Exchange listed Country Garden, Longfor Group, CIFI Holdings, and Midea Five private real estate enterprises, namely Real Estate and Newtown Holdings, organized a corporate bond investment and financing matchmaking meeting to stabilize the financing confidence of real estate enterprises.
On May 23, the People’s Bank of China and the China Banking and Insurance Regulatory Commission held an analysis meeting on the monetary and credit situation of major financial institutions, and the central bank simultaneously held a system-wide monetary and credit situation analysis meeting. In accordance with relevant regulatory requirements, in the future, various regulatory agencies will focus on guiding financial institutions to increase their lending efforts and increase their support for the economy in terms of expanding and stabilizing the stock.
In addition, recently, a number of banks have successively issued notices that loans should be released as much as possible, and increments should be maintained.
As a veteran state-owned enterprise, Poly Development obviously has more advantages when the overall financing of the industry is relaxed.
