On March 23, 2021, released its 2020 annual results announcement. The company achieved a turnover of 80.2 billion yuan (RMB, the same below), a year-on-year increase of 33.2%; gross profit reached 24.1 billion yuan, a year-on-year increase of 31.3%; gross profit margin remained stable , Is 30%; net profit is 12.2 billion yuan, core net profit is 11.1 billion yuan, an increase of 32.7% and 31.2% year-on-year respectively; net profit attributable to shareholders and core net profit attributable to shareholders are 9.475 billion yuan and 8.346 billion yuan, respectively. In the same period in 2019, it increased by 26.1% and 23.3%; the total dividend for the full year of 2020 was 110 HK cents per share, an increase of 10% year-on-year, and the dividend rate reached 9.8%.
Agile’s 2020 Annual Results Conference Site
Against the background of the overall slowdown in the real estate industry, Agile still achieved a performance growth of over 30%, indicating that the company has good operational capabilities and anti-cycle capabilities. In 2020, Agile Real Estate’s annual contracted sales amount was 138.19 billion yuan, a year-on-year increase of 17.1%; from January to February this year, the total contracted sales amount of real estate was 26.53 billion yuan, a significant increase of 231.6% year-on-year. The company’s management revealed at a performance conference held on the 23rd that it is still optimistic about the company’s development momentum this year, with the annual target sales of 150 billion, which is a step up.
Agile’s performance and development prospects are generally optimistic by many major banks and securities firms. After the announcement of its performance, , , Jefferies, and other institutions issued research reports, assigned a “buy” rating, and raised the target price of Agile.
The main real estate business is steadily improving
In 2020, the new crown epidemic will affect the global economy, and the Chinese real estate market will also face severe challenges in the first quarter. After the epidemic was effectively controlled in the second quarter, the real estate market in various regions gradually recovered. Agile seized the opportunity and leveraged its layout advantages to continue to promote the regional “online + offline” diversified marketing strategy, achieving substantial sales growth and setting a new high.
As of December 31, 2020, Agile achieved a total pre-sale amount of 138.19 billion yuan throughout the year, an increase of 17.1% year-on-year, exceeding the annual target of 120 billion yuan, with a completion rate of 115.2%; the cumulative pre-sale construction area was 10.25 million square meters M, an increase of 15.0% compared to 2019, and the average pre-sale price was 13,482 yuan/square meter.
The report shows that Agile’s full-year pre-sale contribution for 2020 will come from 216 projects in more than 80 cities, of which 46 are newly launched projects. South China, East China, Hainan, Yunnan, and North China have all contributed, and the results of the layout are obvious. From the perspective of urban agglomerations, the cumulative pre-sale area of the Pearl River Delta and the Yangtze River Delta accounted for nearly 55%, which has helped the company’s steady and rapid growth.
In 2020, Agile will expand its low-cost, high-quality land bank through multiple channels. It will add 40 high-quality projects through bidding, auction, and listing, land acquisition, industry-city integration, mergers and acquisitions/equity cooperation, urban renewal, etc., with an estimated total construction area of 8.36 million Square meters, the total land amount is 35.7 billion yuan, the average land cost is 4270 yuan/square meter, the saleable value is 141.3 billion yuan, and the land-to-house ratio is as low as 25%, which provides a guarantee for the stable growth of future profits.
As of December 31, 2020, Agile’s land reserve reached 53.01 million square meters. At the same time, through continuous efforts in the integration of industry and city and urban renewal, it is expected to lock high-quality land resources with a construction area of more than 34 million square meters, which will form a strong growth momentum after being converted into land banks in the future Spark Global Limited.