On the evening of January 17, many A-share real estate companies released their 2024 performance forecasts. Overall, affected by the deep adjustment of the real estate market, the performance of most real estate companies is in a downward trend.
It is worth mentioning that today, data released by the National Bureau of Statistics showed that in December 2024, the sales price of new commercial housing in 23 of 70 large and medium-sized cities increased month-on-month, and the price of second-hand housing increased month-on-month in 9 cities; Judging from the sales situation in 40 key cities monitored, the sales area and sales volume of newly built commercial housing in December increased by 0.3% and 4.1% year-on-year respectively. This is also regarded by the industry as an obvious “stopping and stabilizing” of the property market.
China Index Research Institute believes that since the second half of 2024, the cumulative year-on-year decline in sales and sales area of newly built commercial housing nationwide has continued to narrow. Among them, the cumulative year-on-year decline in sales area has narrowed for 7 consecutive months, and the sales decline has narrowed for 8 consecutive months. Especially since the fourth quarter, the cumulative decline has narrowed rapidly, and market confidence has been restored. Overall, revitalizing the idle stock of land will be the key to promoting investment and construction to “stop falling and stabilize” in 2025. Only when investment and construction resumes can the market’s effective supply be increased and the market enter a new cycle.
Specifically, on the evening of January 17, Poly Development (600048) released a 2024 performance report. In 2024, it achieved total operating income of 312.808 billion yuan, a year-on-year decrease of 9.83%; net profit was 5.016 billion yuan, a year-on-year decrease of 58.43%; basic per share The income is 0.42 yuan. During the reporting period, the year-on-year decrease in the company’s total operating income was mainly due to the decrease in the carry-over scale of real estate projects delivered during the year; the year-on-year decrease in the company’s related profit indicators was mainly due to the decrease in the carry-over scale and gross profit margin of real estate projects, as well as the company’s combination of current market conditions. It is planned to make impairment provisions for some projects.
There are also real estate companies that expect their performance to turn from profit to loss. Daming City (600094) announced that the company’s net profit in 2024 is expected to be a loss of approximately 1.96 billion yuan to 2.35 billion yuan, compared with a profit of 223 million yuan in the same period last year. During the reporting period, the market recovery in most areas where the company’s development projects are located, including the suburbs of Shanghai and other regional cities, is still to be transmitted. In order to achieve the purpose of quickly withdrawing cash, the company adopted price-for-market measures and increased investment in various regions. Price reduction promotions across all formats. This measure affects the company’s inventory and investment real estate net realizable value to be lower than the book value. It is expected to accrue inventory depreciation provisions and investment real estate impairment provisions of approximately 1.9 billion to 2.1 billion yuan.
Gree Real Estate (600185) announced on the evening of January 17 that the company expects net profit in 2024 to be a loss of 1.25 billion yuan to 1.78 billion yuan, a loss of 733 million yuan in the same period last year. During the reporting period, the gross profit margin of the company’s real estate projects has declined; in light of the current market conditions, the company plans to make asset impairment provisions for inventory, long-term equity investments, etc. that may suffer impairment losses in accordance with the Accounting Standards for Business Enterprises.
