Vanke A (000002): Sales decline continues to narrow, continue to focus on allocation value

Vanke A (000002): Sales decline continues to narrow, continue to focus on allocation value

The main points of the report describe the company’s sales area of 360 in March.

40,000 square meters, with a sales amount of 573.

700 million (+13.

twenty one?
The cumulative sales area in March was 924.

80,000 square meters, the sales amount is 1494.

400 million (-3.


Event comments The gradual decrease in the progressive sales amount has narrowed significantly, and the cumulative average sales price has slightly increased.

Vanke achieved sales of approximately 573 in March.

7 ppm, an increase of 13 in ten years.

2%; sales area is 360.

40,000 square meters, the ten-year average is 0.

9%; the average sales price for the month was about 15,918 yuan / square, a decrease from the previous month’s 17,507 yuan / square.

In the first three months, the gradual sales amount was about 1494.

4 ‰, the ten-year average of 3.

1%; cumulative sales area is 924.

80,000 square meters, the ten-year average of 11.


The company’s cumulative sales amount and the decline in sales area have narrowed significantly, especially the incremental sales amount has approached the level of the same period last year.

The gradual reduction in the area and the amount of land acquisition narrowed, but the overall intensity of land acquisition decreased.

The company took about 289 to build land in March.

20 thousand square meters, rising about 43 in ten years.

8%; the first three months to gradually take up land to build about 747.

60,000 square meters, a decline of about 14 in ten years.


In terms of land price, the company’s total land price in March was about 148.

6 trillion, up about 16 a year.

0%; the total price of land gradually acquired in the first three months is about 411.

500 million, a decline of about 8 a year.


In terms of land acquisition intensity, the company gradually took the land area / cumulative sales area ratio from the previous month, and the interval between row insertions decreased the overall land acquisition intensity.

Focus on land acquisition in metropolitan areas, land costs are properly controlled.

The company’s total land acquisition in March was approximately 289.

20,000 square meters, of which about 28 are in first-tier cities.

0 million square meters (Beijing project), second-tier cities are about 133.

20 thousand square meters, about 128 in third-tier cities.

The investment in the third-tier cities is mainly Foshan, Zhangjiakou and Panjin. The company’s land acquisition is still mainly in metropolitan areas.
In terms of land acquisition costs, the company’s cumulative land acquisition price in the first three months of the year was about 5,504 yuan / square meter, and the average sales price was gradually around 16,159 yuan / square meter.Land acquisition costs are controlled excessively, which can support the company’s future development business profitability to a certain extent.
Continue to focus on allocation value and maintain “Buy” rating.

The excellent team and mechanism will help the company to move steadily on the road of diversification, and the strategically leading companies will become more and more flexible in operation.

At the same time, the Singapore Government Investment Corporation (GIC) recently increased its holding of Vanke’s H shares again, reflecting the recognition of the company by overseas long-term investors.

The company’s EPS for 2019, 2020 and 2021 is forecasted to be 3 respectively.

69, 4.


29 yuan, an annual increase of 20%, 20%, 19%, corresponding to the closing price of PE on April 2 were 8 respectively.

68x, 7.

22x, 6.

05x; Maintain Buy rating.

Risk Warning: 1.

Macroeconomic changes and industry adjustment policies store certain uncertainties or have an impact on the company’s operations; 2.

Changes in the liquidity environment may have a certain impact on the company’s performance.