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Water skin: the end of the high debt expansion period

September 2, 2018 10:20
Author:Water skin
source: China Times

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[Water skin: the end of the period of high debt expansion, the real estate returns to the product era] The water skin judges that the entire real estate market is likely to enter a new regulatory cycle. The market test for enterprises has just begun, not all houses are good to sell. It is also difficult for the market to rise. At this time, the structure and layout of the product are very important, which determines the competitiveness of the real estate enterprise in the later period. (Huaxia Times)

  The disclosure of the first-half performance report of listed companies is coming to an end. The real estate industry is generally on the rise. However, for developers with sensitive sense of smell, as the dangerous atmosphere becomes more and more intense, companies are paying attention to sales returns. Reduce the leverage and prepare to enter a systolic period.

Judging from the semi-annual report of the housing enterprises, the enterprises that have grasped the real estate cycle very well, the industry is more respected by the Taihe Group, and the water skin is analyzed and analyzed today.

The performance of Taihe Group's semi-annual report can be said to be relatively bright. In the first half of the year, it increased revenue and increased profits. The net asset-liability ratio decreased by 102.76 percentage points, and the operating net cash flow nearly turned positive.

Shuipi believes that this is the result of harmony between the heavens and the earth. Of course, the past time is just a period of real estate booming; the geographical advantage is that there is a large demand for improved demand for housing; this person and, mainly, the enterprise is properly managed. Taihe seized this opportunity, the wind is good, and the company's development has reached a new level.

High investment and long cycle are a major characteristic of the real estate industry. Cash flow is the lifeline of real estate enterprises. Continuous and stable cash flow can ensure the safety of enterprises and reduce the risk of business operations. Cash flow is even more important than profit.

In the first half of the year, Taihe’s cash increased significantly, and the operating net cash flow outflow of 521 million yuan was almost positive. This is a significant significance for Taihe, which has experienced a significant negative operating cash flow for many years, indicating that operating cash inflows are sufficient to cover operations. With cash outflows, there is no need to refinance more funds to develop the business. The company is now in the harvest period through operations and previous investments, and can have excess cash to return the loan or return to the shareholders.

Taihe Group invested a large amount of funds in land and project reserves in the early stage, which caused the company's sales to jump from tens of billions to 100 billion yuan. At the same time, the operating cash flow continued to be negative. In the case of Shuipi, this operation is an opportunity. risk. For real estate companies, land reserves mean that the future scale is guaranteed, but it also causes greater pressure on the previous funds.

With the arrival of a large number of high-quality projects and the increase in cash holdings, Taihe Group will usher in a positive development period of operating cash flow, and enterprises can achieve a virtuous cycle of endogenous life.

However, in the form of de-leveraging in the whole society, it is unlikely that other up-and-coming companies will want to expand their land like Taihe before.

It can be seen from the Taihe semi-annual report that Taihe has been reducing leverage since this year. At the end of the period, the balance of monetary funds was 21.799 billion yuan. The short-term debt of the beginning of 2018 was 43.1 billion yuan. In the first half of the year, it was returned 29 billion yuan. It has been returned 70%, and the short-term debt repayment pressure is not large. At the same time, Taihe adjusted its debt structure. After the expiration of large-volume debts was moved to 2020, the proportion of banks in the debt structure improved and the debt structure was optimized. In addition, there is still a credit line of 47.6 billion yuan that has not been used yet. At the same time, it also promotes the total amount of financing products such as corporate bonds, ABS for long-term purchases, ABS for long-term rental apartments, and ABS for supply chain, totaling 27.65 billion.

It can be said that Taihe's financing channels are diverse, which is also one of the core advantages for the capital-intensive real estate industry.

The improvement in operating performance, the profitability of the main business, and the ability to resist risks at the operational level are also reflected in the significant improvement in the overall operating level of the Taihe Group.

The indicators of the financial statements have improved, which is the intuitive embodiment of Taihe's adherence to “high quality”.

Performance represents the past, especially the real estate financial performance confirmation calculation is a lag period.

Judging from the water skin, the entire real estate market is likely to enter a new cycle of regulation. The market test for enterprises has just begun. Not all houses are sold well, and it is difficult for the market to rise. At this time, the structure and layout of the product are very important, which determines the competitiveness of the real estate enterprise in the later period.

The water skin has observed that Taihe has been following the IP of the Taihe Yard, which has been built for many years, and has been taking a boutique route to create a series of residential products such as the courtyard, the department, the government, and the garden. The city, strong product creation ability and a wider range of purchase audiences have become a great magic weapon. It is also an important moat between Taihe District and other real estate developers. The premium brought by the product force has brought considerable profits to Taihe.interest rateAnd netinterest rateBoth have improved, reaching 33% and 10.7% respectively, which is in the forefront of the industry.

The future Taihe will strive for excellence. With the gradual emergence of the low-cost land acquisition advantages of Taihe Group, strong product building power, providing support for future performance growth, the scale of payment will be greatly improved, and the asset-liability structure will be optimized.

After the return of cash flow, Taihe, product strength and management power are the core competitiveness of the future. With the release of the previous layout and historical accumulation, it is believed that the future Taihe will stand in the C position among many listed real estate enterprises.

                (Editor: DF064)

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