Looking back at the end of 2020, the A-share market sounded the clarion call of the bull market, and some sectors took turns to stage a magnificent market: the Shenwan industry index shows that the home appliance, automobile, food and beverage sectors have increased by about 25%, 40%, 75% in recent years. %. The real estate sector in the Silver Age has continued to slump this year, and the average stock price of the sector is still a single digit, making it a veritable evaluation depression.
Last month's sales increased by 10.21%, emphasizing the resilience of stable performance.
Rongsheng Development's sales exceeded 100 billion U.S. dollars for the first time in 2018, and continued to increase to 115.4 billion U.S. dollars in 2019. In 2020, it encountered an epidemic. In the first half of the year, Rongsheng Development achieved 2.73% and 3.54% increase in contract value and 3.54% from last year. . According to the previous November sales briefing, Rongsheng’s sales from January to November reached 102.242 billion, an increase of 10.21% over the previous year. The growth rate of more than 30 residential companies with sales exceeding 100 billion during the same period was very small.
As shown in a report recently published by CICC, “Rongsheng’s development and sales accelerated in the third quarter. The company expects to achieve a sales target of 121 billion yuan for the whole year with the support of sales value, corresponding to an increase of 5% over last year. Confidence in Rongsheng’s development and management effect. (The latest news is that 99% of sales of 119.56 billion yuan have been completed)
From the performance point of view, the net profit of Rongsheng Development was 2.428 billion yuan in 2015 and 9.120 billion yuan in 2019, an increase of 3.76 times in 5 years. From the perspective of 2020, the semi-annual report shows that the company's net profit was 2.95 billion yuan, compared with 4.4 billion yuan in the third quarter. The company's pace of getting out of the impact of the epidemic has accelerated and the overall steady growth has been achieved.
At the same time as the performance growth, Rongsheng Development's financial situation has also improved. In its research report evaluating Rongsheng Development’s third quarterly report, Huaxi Securities showed that as of the end of the reporting period, the company’s net debt ratio was 88.15%, a decrease of 10.42 percentage points from last year, and the company’s financial status continued to be optimized. In terms of financing, the company issued 1 billion and 1.120 billion three-year general medium-term notes in the third quarter, with coupon rates of 7.22% and 7.18%, respectively. In January and March last year, the company issued two 270-day ultra-short-term financing bonds with an interest rate of 7.30%. With the continuous optimization of the company's financial status, the company's financing costs have gradually decreased.
The dividend and elegant 3.4 times share price yield is absolutely low.
In the 13 years since its listing, Rongsheng Development has been very generous in the industry in terms of dividends. The company has annual dividends. By the end of 2019, the dividend reached 10.3 billion yuan, breaking through the 10 billion mark for the first time and exceeding the total amount of previous financing. According to the 2019 dividend level, the dividend rate reached 5.8%. This level is not only far better than the bank's asset management, but also won most of the A-share companies.
The other data is ROE. From the data of the past three years, the ROE level of Rongsheng Development has stabilized at more than 20%. In this measurement index that Buffett regards as a good company, Rongsheng Development is undoubtedly excellent, showing The ability to continuously create value for shareholders.
In contrast to the performance of the secondary market, Rongsheng has developed a stock price return rate of 3.4 times, which is not only the absolute lower position in the company's history, but also the lowest range in the entire market industry. Because of its ultra-low stock price yield and high dividend rate, and relatively certain performance growth, Rongsheng Development has obvious charm to value investors.
From the perspective of this year’s area, the company’s newly planned construction area in the first half of 2020 is 4.674 million square meters, covering an area of 20.817 billion yuan, accounting for 33.4% of the current sales, which is an increase of 7.3 percentage points from 2019. .
The company's semi-annual report shows that as of the first half of 2020, Rongsheng Development's land bank construction area is 40.36 million square meters, which can basically meet the company's three-year compound growth of about 10%, laying a solid foundation for continuous performance improvement.