Housing Enterprises 2020 Target Growth Slowed Down Collective Security And Profits Become The Biggest Pursuit

If the 2020 can be restarted, the sales target of most housing companies should not be as conservative as it is now.

In the past March performance meeting, in the face of the downward market and uncertain epidemic situation, in addition to Hengda and a small number of Housing enterprises, the mainstream housing prices have lowered the sales target this year, the growth rate dropped to 10% or less than 5%. Even the target of Housing enterprises has seen a negative growth.

China's real estate market has entered the adjustment period since the fourth quarter of 2018 after more than 4 years of Daniel market. The high turnover and competition scale that was once regarded as a standard has been placed on the secondary position by the housing companies.

Even Sun Hongbin, chairman of speed and mergers and acquisitions and chairman of the board of directors of financial innovation, also said, "the growth of sales scale is not the focus in the future, and profits and quality are the first ones."

As a matter of fact, profits may also be excluded. Safety is the first important thing at the moment. Sales and receipting, which are of vital importance to the cash flow of housing companies, were suspended in 2 and March. Plus this year is the peak of debt repayment, some housing enterprises are facing the most serious crisis since 2008.

From a more long-term perspective, when the sales market reaches about 16 trillion of the ceiling, the slowdown is the fate of all housing companies. It is the core of real estate competition in the second half of the year to try to diversify, transform the profit pattern and improve the quality of operation.

In 2020, it is destined to be a new turning point.

Faucets speed down collectively

Affected by the epidemic, the pace of housing companies in 2020 was forced to slow down, and the targets announced at the performance meeting were more prudent than in previous years. The target sales growth slowed sharply to normal.

In the first two years, the housing sector with high growth rate slowed down first, taking China as an example. This year's sales target is only 7.8% higher than its sales in 2019. In the past few years, financial innovation is known as a high growth housing company, and its growth rate has been over 20% in the past few years.

Originally robust housing prices were more cautious. Huarun has made clear that it will maintain a steady operation in 2020, with a sales target of 262 billion yuan, an increase of 8% over the same period last year, while Longhu's sales target was set at 260 billion yuan, a slight increase of 7.2% compared with the 242 billion 500 million yuan sales in 2019.

There are also many housing companies, this year's sales target is basically the same as last year, Fuli, agile and times China and other housing prices said that this year's sales target growth of only 2%-5%.

Overall, the target growth rate of the mainstream Housing enterprises is basically around 10%, which is slower than that in 2019, and is lower than the 2019 year-on-year growth rate.

More housing enterprises have a negative growth. The goal of Xincheng holdings is more conservative. Wang Xiaosong, chairman of the board, said that considering the impact of the epidemic, Xincheng set the sales target in 2020 prudently to 250 billion yuan, down 7.7% from last year's sales of 270 billion 800 million yuan.

Leading domestic prices, the country garden and Vanke did not announce this year's sales target, but from Hengda's 2020 sales target of 650 billion yuan, it seems that the actual growth target is still maintained at 8%.

There are music lovers. Sales target of larger housing companies such as Greentown, Jinmao and Shimao, but their sales target in 2020 is only 20%-25% growth, which is lower than that of two or three years ago.

Kuri said that under this situation, although most housing companies believe that the year-on-year decline in the first quarter performance has relatively limited impact on the whole year's sales. But when market uncertainty is accumulating and housing companies want to live better, they must be "stable". The growth rate of the industry will slow down, and the reduction of the target growth rate in 2020 is also within reasonable expectations.

Gram data show that in the first quarter of 2020, the overall sales performance of TOP100 Housing enterprises decreased by nearly 20.8%.

Looking forward to the future, with the gradual control of domestic epidemic situation, orderly resumption and resumption of production, it is expected that the real estate market will continue to recover in the two quarter, and the supply and demand decline is expected to further narrow. However, the overseas epidemic situation is extremely grim. Under the financial turmoil, the downward pressure on overseas economy is increasing, or will be transmitted to the Chinese economy. The two quarter of the real estate market is still not optimistic, and real estate development investment and other industry indicators are more difficult to get rid of the downward channel.

Yi Han think tank said that the scale of housing prices unanimously lowered performance growth goals, consciously cultivate the market acceptance and adaptability of the slowdown in corporate performance, and the relatively prudent goal set in the enterprise is more controllable, and the possibility of smooth implementation is also higher. Under the help of sales and marketing, most of them can overfulfills their preset goals.

Profitability on safety

From the goal of Housing enterprises this year, except for the "Warriors" who have the courage to pursue scale growth like green city, the vast majority of housing companies still hope to grasp the surplus grain and slow down their pace.

"Survival" is no longer a slogan in the head housing industry. The giants have already prepared for the "survival" and are committed to controlling the net debt ratio at a low level.

Central enterprises and state-owned enterprises in the background of housing performance outstanding. By the end of 2019, Huarun's total liabilities amounted to 528 billion 635 million yuan, and its net debt ratio was only 30.3%, even lower than that of China shipping and Vanke. China net debt ratio is 33.7%, Vanke is 33.9%.

In addition to these three, many debt ratio of Housing enterprises are located in the low position of the industry. The net debt ratio of country garden dropped to 46.3%, and net debt ratio of Longhu was 51%, at a low level.

As a leading housing company, Hengda and Rong Chong, as well as Fuli, Jia Zhao and other long term net debt ratio of higher housing prices, net debt ratio is still more than 150%, there is still a big drop in space.

Therefore, these companies have clearly proposed the goal of reducing the debt ratio at the performance meeting. Hengda will further implement the business strategy of "high growth, control of scale and debt reduction".

In twenty-first Century, the economic report noted that this year, housing companies are more concerned about cash short debt ratio than this indicator. By the end of 2019, the cash short debt ratio of Longhu was 4.38, maintaining a high level in the industry. China's cash short debt ratio is about 3, and Huarun's cash short debt ratio is 3, which is at a higher level in the industry.

Among the four giants, the cash debt ratio of Biguiyuan is 2.3 times, and Vanke is 1.77, and its performance is all excellent.

The other two figures are worried. As of the end of December 2019, a debt that matured within 1 years was 372 billion 100 million yuan, while cash and equivalents were only 150 billion 56 million yuan in the same period. Cash was difficult to cover short-term liabilities. The other one was due to lend 135 billion 730 million yuan in one year and the cash at the end of the month was 125 billion 730 million yuan, which was only equivalent to 93% of short-term loans. If the restricted funds were removed, the proportion would be reduced to 57.3%, and the risk of short-term liabilities also increased significantly.

The housing companies said they would reduce the debt ratio and reduce short debt by financing, speeding up sales, and selling assets.

On the basis of safety, housing enterprises pay more attention to how to improve the quality of operation and profitability.

For the first time, Sun Hongbin suggested that financial innovation has entered a new stage of development with better profit management as its core. No longer pursue sales ranking, but hope to have a better ranking in terms of profits and quality.

Shimao's assessment system has also been changed this year. Hsu said at the performance meeting that the bonus awarded to the team this year is calculated according to the core profit after equity, that is, how much money it earns and how much money the group will give. Under this examination, it is useless to make big sales through leverage, and the bonus will be reduced.