Market NewsAn interpretation of the recent Management Exchange minutes of Longhu Real Estate (0960.HK)Summary:
1. With regard to the rumors of Longhu commercial tickets recently released by the media, the company said it was a complete rumor and had paid attention to the relevant source and was ready to sue. Longhu has not made commercial tickets at all since last year. At present, the balance of the commercial bill is 700 million, which will be paid gradually by the end of the year. The company said that it is very concerned about the safety of cash flow and will precipitate some funds to invest in shopping malls every year, which is effective in the current industry.
two。 In terms of investment, the rock bottom price took a lot of projects in the fourth quarter of last year, and 20 new projects were obtained from January to July this year, with 16 open market cases, rights and interests of 16.8 billion, and a value of 60 billion, which are located in relatively safe cities such as Hangzhou, Chengdu, Beijing and Hefei. The Hefei project will take the land in March and open in June. In July, he acquired three cases with an equity land price of 2.6 billion; in July, he acquired the Hong Kong Kai Tak project at HK $1.3 billion, and he was very confident about the future.
3. The company believes that the government is still very positive to the industry, the BB department is in close contact with the people's Bank of China, the Ministry of Housing and Construction and other relevant departments, are very concerned about how to make the industry better, flooding is impossible, but there will be more positive policies. Zhengzhou has fired the first shot to rescue the city in the provincial capital city. After May, all major cities are implementing policies to rescue the city. Yesterday, Guangzhou relaxed its settlement policy. Annual land transfer fee revenue accounts for 30-50% of government revenue, developers have problems, the pressure on the government is also great, the government also hopes that real estate back to the right track. As long as the market does not return to the normal track, the rescue policy will come out.
Qroomamppac A:
Q:From the media on the Longhu commercial ticket rumors, please respond to the management.
Complete rumors, concerned about the relevant sources, are ready to sue. Longhu has not made commercial tickets at all since last year. At present, the balance of the commercial bill is 700 million, which will be paid gradually by the end of the year.
Q:Cash flow problem, share the recent cash flow situation.
Longhu is very concerned about the safety of cash flow and will precipitate some funds to invest in shopping malls every year, which is effective in the current industry.
Q:In terms of investment, how to view the intensity of land acquisition this year and the strategy of land acquisition in the future.
In the fourth quarter of last year, we won a lot of projects. From January to July this year, we obtained 20 new cases, 16 cases in the open market, 16.8 billion rights and interests, and a value of 60 billion, which are located in safer cities such as Hangzhou, Chengdu, Beijing and Hefei. The Hefei project will take the land in March and open in June. Three cases were obtained in July with an equity premium of 2.6 billion, and the Hong Kong Kai Tak project was acquired in July at HK $1.3 billion. I have great confidence in the future and call on all people related to the real estate industry to maintain a healthy atmosphere in the industry.
Q:Sales.
Affected by the epidemic in Shanghai in the first half of the year, the regulation and control was liberalized from June to July, and the epidemic gradually recovered. In July, the full caliber was 18.2 billion, down 4% from the same period last year. There were several relatively large projects in August.
Q:Longhu short-term debt needs to be repaid, refinancing in the second half of the year.
In terms of debt, as it is currently a quiet period, the specific figures will not be mentioned. So far by the end of the year, all debts have been paid off, and there is no outstanding hard debt. In the second half of the year, the syndicate due next year may be repaid voluntarily, with short-term debt accounting for about 10%.
Q:How do you look at cooperative projects? is there any need to acquire out-of-risk partners?
Do not do non-standard financing, very little cooperation with out-of-risk developers, a small number of cooperation projects basically entered the final stage. The risk of the cooperative project and the risk isolation of the partner, there is a list of partners, equity collateral of the cooperative project is not allowed, even if some partners are at risk, the cooperative project is still safe.
Q:Which regions sell better and which are relatively slower?
The differentiation is very obvious, the first line and the core second line are very good. Hangzhou has launched a 5 billion project this month, which is expected to be wound up. Longhu only enters 68 cities in China, and the developers who enter the city the least in top10 are relatively safe. The decline in three, four, five and six-tier cities is very obvious, and there is no trend to stop the decline.
Q:The financial situation of Longhu is relatively healthy, to what extent does sales fall, and liquidity will be under pressure?
Policy has basically bottomed out, but it will take time to restore confidence. In terms of debt structure, Dragon Lake is one of the best developers. No matter how long it takes for the industry to recover, we will hold enough cash flow through the cycle.
Q:Management said that profit growth is in double digits, will it be adjusted accordingly?
Volume and price balance, we wait until after the cycle, the remaining enterprises will usher in a better market environment.Q:Will you feel that the regulators have further help to the plate?
The government is still very positive to the industry, the BB department has close contact with the people's Bank of China, the Ministry of Housing and Construction and other relevant departments, they are very concerned about how to make the industry better, flooding is impossible, but there will be more positive policies.
Zhengzhou fired the first shot to save the city in the provincial capital city. After May, all major cities are implementing policies to rescue the city. Yesterday, Guangzhou relaxed its settlement policy. Annual land transfer fee revenue accounts for 30-50% of government revenue, developers have problems, the pressure on the government is also great, the government also hopes that real estate back to the right track. As long as the market does not return to normal track, the rescue policy will come out.
Boss Wu shared: I think today's stock price plummeted, from our own point of view, we do not care too much, is caused by the market panic, the enterprise did not have any situation at all. To anticipate everything is to set things in advance, and Longhu foresaw these problems relatively early, and it is only by our principles and discipline that we have come to this day. Domestic and foreign debt structure, debt structure are very good, Longhu fell in my quiet period, sensitive period we can not buy. As major shareholders, when we choose dividends or stocks, we take the initiative to choose stocks to support listed companies to get more money. We are not busy with what is in front of us, and executives are looking to the future and doing something about how to find opportunities in the industry. Now is not to look at the risk, but to look at the opportunity, it is time to explode, now is the darkest time in the industry, but we should look at the bright side. When we had a meeting with our partners two weeks ago, we all thought that these things were very exhilarating, and we were very calm. The country has been trying to get the industry back on track, and companies with high leverage in the past have also paid the price. Will not flood, the policy will be gradually introduced, after the industry is clear, Longhu will always have opportunities.
More Content
