Xuhui plans to buy more land in the commercial market, the market is not enough
Xuhui (00884) performance is expected, but the stock price fell 7.3% as the most hurt Chinese property stocks, the industry believes that it is related to the lack of land storage at the end of last year. Xu Hui, chairman of Xuhui, said that the increase in land purchases at the beginning of this year also means that it will accelerate the development of commerce, and finally to follow the new land (00016) to increase the commercial share to half.
The core earns 35% and the dividend yield is 5.6 percent.
Xuhui’s net profit increased by 12% to 5.41 billion yuan last year. Core net profit rose 35.6% to 5.54 billion yuan, revenue was 42.37 billion yuan, final dividend was 23 cents, and the current dividend yield was 5.6%. The results were in line with market expectations, but the share price plummeted after the results announcement, closing at HK$5.33 and turnover of HK$390 million. Some investors analyzed that the market believes that Xuhui bought land insufficiently last year and it is difficult to support the development in the next few years. As of the end of last year, Xuhui confirmed the land bank’s 41.2 million square meters, an increase of 32.9% year-on-year, and contract sales increased by 46% over the same period.
Business accounted for half
However, Lin said that the company has seized the opportunity to increase land purchases in the first two months of this year. In the future, it will strengthen the land bank of second- and third-tier cities, and the proportion of new land reserves will increase by more than 70%. Less than 45% of the funds are used as land-buying funds, and the annual sales target is 190 billion yuan.
Lin Zhong said that the development business will be dominated by second- and third-tier cities, while the first-tier cities will be converted into holding operations, which will increase more commercial rent-collection projects. Xuhui’s rental income last year was 240 million yuan, accounting for 0.6% of total revenue. Linzhong expects that the Shanghai project with land cooperation can contribute more than 200 million yuan this year. In addition, several shopping malls and office projects under construction will increase the rental income in the future. Accelerate, the proportion will also increase year by year, expected to reach 15% to 20% a few years later. He said that it is still in the golden period of development and sales, but it is expected that the layout will be transformed after five years, and eventually the rental ratio will be increased to nearly 50%. “It is the same as Hong Kong Sun Hung Kai.”