Behind The Hot Sale Of Shenzhen'S Mansion: Merchants Shekou Took Inventory 2 Billion Down Last Year.

The hot property market in Shenzhen can not cover the downturn in the national market, which can be seen from one or two in the financial report of Shekou.

Over the past few years, the merchants of Shekou, a real estate developer in Shekou, Shenzhen, has brought talks to the market every year, often coming out of hot houses, sold out, and tens of millions of Yuan houses are lined up for robbing.

In the 2019 earnings report, the company only contributed more than 20% of its revenue in a single region of Shenzhen, and the rest of the region should be bent on Shenzhen. The gross profit margin in the Shenzhen region is almost the highest in the whole company.

In the other cities of China's investment Shekou layout, there is not such a good performance, sales are blocked or even lost. In 2019, the company made a provision of 13 cities and 19 projects for inventory depreciation, amounting to 2 billion yuan.

In 2019, the overall business performance of Shekou Shekou was good, and the 40% dividend rate exceeded that of Vanke, poly and other housing companies. It also promoted the listing of real estate and real estate trusts. But investors are still concerned about long-term issues, such as uneven regional development, sales growth and valuation recovery.

At the recent performance meeting, the management of hsishekou revealed that the target sales in 2020 were 250 billion yuan, an increase of 13.4% over the same period last year. Compared with other leading housing enterprises, the growth rate was slightly higher than that of other leading enterprises. The growth rate was slightly more aggressive, indicating the determination of the management to improve their performance.

Divided Market

According to the annual report, the business income of China Merchants Shekou in 2019 was 97 billion 672 million yuan, an increase of 10.64% over the same period last year. The net profit attributable to shareholders of listed companies was 16 billion 33 million yuan, an increase of 5.2% over the same period last year.

Under the support of the parent company's China Merchants Group resources, China Merchants Shekou has large quality plots in Shenzhen, and has developed several luxury projects. It is even less popular in Shekou free trade zone and Guangdong Bay Hong Kong Macau Bay.

Real estate circles will not forget that the hot sale of Shenzhen's luxury housing starts with the investment Shekou project. In May 30, 2018, the average price of about 120 thousand / Ping merchants double Xi opened, the market began at 12 noon, 5 million identified chips, 167 suites, ready to buy a group of 50 million rich, squatting in the corner and other Yaohao.

The resource of Shenzhen luxury housing in Shekou is never a flash in the pan. By November 2019, another business of investment in Shekou was located in Qianhai, Shenzhen. The lowest price was 86 thousand / sq m, the highest price was 110 thousand / sq m, and it was sold out again.

In March 7, 2020, the Bay line project of Shekou was first opened online after the outbreak. It was located in Prince Edward Bay, Shekou. The record was named Yun Xi mansion. The first 70 suites were sold out, followed by the launch of new houses in March 13th and April 5th.

This phenomenon has been concerned by relevant departments, and item company's Lok Wan estate has issued a statement outside the country, clarifying that it has not "sold it for sale" and "sold out three times".

Selling in deep luxury houses is not only the advantage of investment Shekou, but also implies the potential problem of merchants' Shekou: Shenzhen market has a limelight of two, while other urban projects show a general trend.

Even if a city like Shanghai is no exception, in March 2018, Merchants Shekou in Baoshan, Shanghai, the opening of the project Yonghe house, the high-rise apartment houses and villas were cold, half a year sold less than 10 sets, had to sell in disguise, September launched the "buy BMW" activities, another project in Shanghai also launched a national broker strategy.

In November last year, China Merchants Shekou also jointly auctioned Ali on the Internet to dispose of assets in East China, including the sale of offices in Hangzhou shops, Jiangsu shops, Nanjing and other cities, and Suzhou's houses, almost all of which were not sold online.

In March of this year, the investment promotion project of Shekou in Zengcheng, Guangzhou, was priced at 21 thousand yuan / square meter, which was almost 2/3 of the average price of the market before the year. The land price of the project is about 17 thousand square meters. In Foshan Shunde, the price of the project has been 20 thousand / square meters, and the average price of the special housing has been reduced to 15 thousand square meters.

Regional market imbalance can be reflected in financial reports. In 2019, the business income of Shekou Shekou reached 97 billion 672 million yuan, an increase of 10.64% over the same period last year. There are 9 major regional companies in the country. Shenzhen is the only region named after the city. The Shenzhen region accounts for the largest share of its operating income, reaching 22.15%. In other regions, the largest East China region is only 20.69%.

The financial report also showed that in 2019, the impairment rate of 2 billion 90 million yuan in Xiamen, Fuzhou and Foshan projects was 1 billion more than that in 2018, reaching 11.08% of net profit, of which Xiamen set up a 980 million yuan inventory price reserve.

Transformation and future

As a central enterprise, Merchants Shekou is born with a golden key. It is "investment blood and Shekou gene".

The background of China Merchants' Shekou parent company is difficult for many housing companies to catch up with, including industrial and financial resources such as merchants port, China Merchants Bank, China Merchants Securities and merchants capital, which have injected more resources into the company.

At present, the land reserve of Merchants Shekou in Qianhai and Shekou in Shenzhen is still a growing point of concern. As of the end of the reporting period, the company has 4 million 558 thousand and 400 square meters of Qianhai regional soil reserve, and 4 million 288 thousand and 400 square meters have not been started. It owns 1 million 700 thousand square meters of soil in the Taizi Bay area and 611 thousand square meters.

Xu Yongjun, chairman of investment Shekou, revealed that the Qianhai land company plans to complete the development in 8-10 years, of which the sales and holding ratio will be determined according to the layout; the Shekou Taizi Bay has now completed 1/3 and will be completed in the next three or four years.

Is Shekou Shekou overly dependent on the Shenzhen market? Only luxury houses sell well, how do they become operators of cities and parks? Nie Liming, deputy general manager of Merchants Shekou, bluntly said: "the problem of comprehensive development is particularly prominent in Shenzhen, and there is no prospect in Shenzhen if it is a residential product alone."

In fact, when he reorganized the stock market a few years ago, he proposed the transformation to urban operators. Whether in Qianhai, Shekou or elsewhere, the comprehensive development format also indicates that the holding property will become one of the core of the future.

Since last year, the company has held a more important position in property operation and asset management, and defined it as "information management year" in 2020. In 2019, the company has set up a resource management center, and will build a unified asset management platform in 2020. Try to separate the heavy and heavy industries, separate the construction and management, and reorganize the holding business.

Jiang Tiefeng, general manager of China Merchants Shekou, said that the business of inviting Shekou to enter the property intensive business in the next three years is now operating at an area of 2 million 860 thousand square meters and 4 million 450 thousand square meters under construction. It is expected to be built in 3 million square meters in three years.

Xu Yongjun disclosed that holding property long-term planning, it is estimated that in the next five years, the assets of holding property will reach 150 billion yuan, accounting for 1/4 of total assets.

In addition, on the basis of traditional real estate development, China Merchants Shekou has begun to set foot in the relevant industrial models including industrial new towns, cultural tourism, big health, ports, entertainment and other related industries. In the major income, Xu Yongjun had hoped that before 2020, the proportion of community development business dropped to 70% or even 60%.

But last year, income from community development and operation accounted for 86.57%, down 2.57 percentage points compared to the same period last year. The proportion of the development and operation of the park accounted for 12.77%, an increase of 2.55 percentage points compared to the same period last year. The proportion of the revenue from the construction and operation of the cruise industry was 0.66%, an increase of only 0.01 percentage points from the same period last year.

According to the development strategy, such income structure is still uneven and has not reached the expected level. There is still a long way to go for the transformation of Shekou.