Agile’s latest sales target is only one percent more prudent

Agile (03383) announced its results last year. Profit attributable to shareholders was 7.125 billion yuan, up 18.25% year-on-year; earnings per share was 1.835 yuan; final dividend was 50 Hong Kong cents, a decrease of 26.5%. During the period, turnover increased by 8.79% to 56.145 billion yuan, which was lower than the market expectation of 61.07 billion yuan.

Profit increased by 18%

The group announced its results at noon. The stock price once fell to 11.82 Hong Kong dollars in the afternoon, a drop of 6.19%, closing at 12.38 Hong Kong dollars, down 1.74%, and the daily turnover was 261 million Hong Kong dollars. Wang Haiyang, vice president, said that the target for pre-sales in 2019 is 113 billion yuan, which is about 10% higher than the actual pre-sale amount of 102.7 billion yuan last year. The target growth this year is more cautious, considering the current real estate market conditions and policies in the Mainland. The normal starting pace, if the market conditions and policies change this year, the group will adjust the target. Agile has a sales value of over 200 billion yuan this year and 117 items for sale throughout the year.

Chairman Chen Zhuolin pointed out that the target of pre-sales this year rose by 10%, which is a conservative estimate of the company. It is also a pursuit of quality growth. For example, last year’s net profit margin exceeded 14%, which is better in the industry. He is cautiously optimistic about the real estate market this year. The project’s net profit margin will be considered from 10% to 12%. I believe the group will maintain its net profit margin last year and believe that it will be higher from 2020 to 2021.

For the earlier two sessions, the implementation of the property tax, Chen Zhuolin said that the property tax has been implemented in Shanghai and Chongqing, the policy has a small adjustment to the industry, but that the mainland property market will still have a steady increase, because the annual housing demand is still large.