|
On the evening of October 26, Sunshine City (000671. SZ) released the results of the first three quarters. According to the report, from January to September 2018, Sunshine City realized sales of 109 billion yuan, of which the amount of equity sales was 83.803 billion yuan. The net profit attributable to the parent company was 1.581 billion yuan, up 155.55% year on year.
However, the Sunshine City, whose scale has reached a higher level, still faces many questions from the industry. The equity pledge of major shareholders has reached 100%, while the stock price of Sunshine City has been in a low state (as of the closing on October 26, Sunshine City closed at 5.35 yuan/share), and the risk of closing positions has been increasing. In addition, a large number of guarantees and a high debt level make the industry full of questions about the development of Sunshine City in the weak cycle.
How to break the game? How does the rapidly developing Sunshine City brake? What challenges does Sunshine City face?
"At the beginning of this year, Sunshine City planned to spend 80 billion yuan on land acquisition, but with the change of the market situation, we have adjusted the pace of investment since March. Previously, we required a net profit margin of 8% to acquire land, but now we require a net profit margin of 15% to acquire land. It is estimated that our land expenditure this year will be about 35 billion yuan." Wu Jianbin, executive vice president of Sunshine City, told China Business News.
Previously, Sunshine City announced that as of the disclosure date of this announcement, the company's controlling shareholder Fujian Sunshine Group Co., Ltd. held 709136962 shares (17.51% of the company's total share capital), and the cumulative number of pledged shares was 694204461 shares (17.14% of the company's total share capital); Dongfang Xinlong Asset Management Co., Ltd., a wholly-owned subsidiary of Fujian Sunshine Group Co., Ltd., holds 620370947 shares of the company (accounting for 15.32% of the total share capital of the company), and the cumulative number of pledged shares is 579692752 shares (accounting for 14.31% of the total share capital of the company); Fujian Kangtian Industrial Group Co., Ltd., the person acting in concert, holds 411785923 shares (10.17% of the total share capital of the company), and 399073423 shares (9.85% of the total share capital of the company) have been pledged accumulatively.
The pledge ratio of major shareholders of Sunshine City is extremely high. Once faced with the downward trend of stock prices, there will be a chain of closing positions.
Wu Jianbin responded that the cost of large shareholders' position covering was below 5 yuan, while the current stock price was above 5 yuan.
"The funds obtained from the pledge financing of major shareholders are all well invested, including the share investment of Industrial Bank and Bank of Jiangxi, with good liquidity and no risk," Wu Jianbin told reporters.
Chen Ni, the chief financial officer of Sunshine City, believes that major shareholders still have some investments that can be quickly realized by selling, but now the major shareholders have not done so, indicating that there is no great capital pressure.
However, before that, the stock price of Sunshine City had once fallen below 5 yuan, and the industry judged that the major shareholders of Sunshine City would make up positions in cash. Later, Sunshine City issued an announcement calling on employees to buy shares, and proposed a stock repurchase plan to keep their share price stable. At the same time, the company claimed that it could cover for employees who bought shares during this period. In case of losses, the company would make up for them.
In addition to the hidden dangers of major shareholder pledge and stock price decline, another risk point of Sunshine City is that the guarantee is also very large. On the evening of the 22nd, Sunshine City announced that it had provided a total of 5.707 billion yuan of guarantees for subsidiaries in Shanghai, Guangdong, Xiamen, Hangzhou and other places. According to incomplete statistics, since September this year, Sunshine City has provided guarantees for its subsidiaries for many times. According to the disclosure of the announcement, the amount of guarantee provided by Sunshine City for the subsidiary has reached 136.743 billion yuan. In the same period, the net assets of Sunshine City were about 20 billion yuan, and the guarantee amount was high.
Therefore, Wu Jianbin also believes that the debt situation of Sunshine City is higher than that of peers, and reducing debt and ensuring sales are two priorities of Sunshine City.
Wu Jianbin said that from the perspective of the third quarter report, the financial indicators of Sunshine City in all aspects have been better improved at present, including the interest bearing debt, which was 2.6 billion yuan lower than the end of last year; By the end of September, the company's operating cash flow was 11.318 billion yuan, up 93.27% year on year; The gross profit margin increased by 5.09 percentage points from 21% at the end of last year to 26.48%.
However, there is still some distance between Wu Jianbin's expectation that the long-term net debt ratio of Sungrow will fall to less than 100% in the future. As of the third quarter report, the net debt ratio of Sunshine City is 208%.
"It may reach below 200% by the end of this year. We still need to continue to make great efforts to improve this," said Wu Jianbin.
In terms of financing cost, the capital cost of Sunshine City is still in the middle position in the industry. From the data of the third quarter report, the average financing cost of Sunshine City in the first three quarters was 7.9%.
"The whole market environment has changed and financing is difficult. It is expected that from the end of this year to next year, the domestic and overseas credit rating of Sunshine City will be adjusted more likely, and the data of financing costs will be improved." Wu Jianbin explained.
Of course, the rapidly developing Sunshine City also began to release positive signals, for example, its net financing barely increased in the third quarter.
"In previous years, when we looked at Sunshine City, the absolute value of investment was also growing when the sales scale increased significantly, but this year we will see obvious changes. The absolute value of financing was flat from March to June, and even fell by the end of September. In terms of normal operational activities, Sunshine City is trying to cover the expenditure with operational inflow at this stage, rather than relying on financing and borrowing. " Chen Ni said.
This means that Sunshine City has gradually improved from the original financing driven enterprise to the operation driven enterprise.
Like many real estate enterprises, Sunshine City focused on ensuring supply and cash flow in the fourth quarter. Wu Jianbin said frankly that the supply of goods in Sunshine City this year was lower than expected due to many factors, so ensuring sales and payment collection is the key work in the future.
"Our current payment collection is more than 80%, which is still far from our expected 85%, which is also the focus of future work," said Wu Jianbin. The opinion of this article only represents the author himself. If the source of the article is a network reprint, this website is an information publishing platform. If there is infringement, please contact this website to delete it in time.
|
