In the new industry cycle, as a model real estate company, Seazen Holdings (601155.SH) has once again demonstrated strong resilience.
Recently, Seazen Holdings released its semi-annual report for 2024, showing that in the first half of this year, the company achieved a total revenue of 33.904 billion yuan, a net profit attributable to shareholders of listed companies of 1.318 billion yuan, and a de-merged net profit of 1.318 billion yuan, with a gross margin of 21.6%, an increase of 2.57 percentage points year-on-year.
Behind the continued positive performance is the further advantage of Seazen Holdings' "residential + commercial" dual-wheel drive strategy. Under multiple challenges, the company has built a solid bottom line for safe business operations, ensured cash flow safety, and achieved a positive operating cash flow for six consecutive years, demonstrating the company's resilience and endurance.
Dual-wheel drive, performance continues to improve
For a long time, Seazen Holdings has adhered to the "residential + commercial" dual-wheel drive strategy, with the advantages of real estate development and commercial operations complementing and advancing together, building the company's core competitiveness and ensuring the company's continuous positive profitability.
In the residential business, Seazen Holdings remains stable. In the first half of this year, the company achieved a contract sales amount of about 23.554 billion yuan, with a contract sales area of 3,262,200 square meters; it achieved a recovery amount of 24.7 billion yuan, with a recovery rate of 105%, providing a stable guarantee for the company's cash flow safety.
As of the end of June 2024, Seazen Holdings had sold but not yet transferred an area (including joint ventures) of 19.1644 million square meters, also providing ample room for imagination for future performance.
Commercial real estate, as the second growth curve of Seazen Holdings, has continued to increase its contribution to the company's overall performance and has brought rich and continuous cash flow. In the first half of this year, Seazen Holdings achieved a total commercial operation revenue of 6.212 billion yuan, a year-on-year increase of about 19.44%, which has completed half of the annual target.
Not only that, the gross profit margin of commercial property leasing and management is high, and the proportion of commercial management gross profit in the company's overall gross profit continues to increase. In the first half of this year, Seazen Holdings achieved a non-tax property leasing and management revenue of 5.804 billion yuan, accounting for 17% of the company's total revenue; the property leasing and management business gross profit was 4.191 billion yuan, accounting for the company's total gross profit increased from 43% last year to 57% this year; the property leasing and management gross profit margin reached 72%.At the same time, the "light and heavy" business model of Seazen Holdings continues to show results, and the scale of commercial management is further expanded. In the first half of this year, Seazen Holdings added six new Wu Yue Plazas to its portfolio, continuously creating new commercial landmarks for cities and bringing a happy life experience to consumers.
As of the end of June 2024, Seazen Holdings has achieved a layout of 201 complex projects in 137 major and medium-sized cities, with Wu Yue Plazas opening a commercial area of 15.2798 million square meters and a rental rate of 97.24%.
In addition, Seazen Holdings has fully leveraged its synergistic effects and resource advantages by establishing a real estate agency construction and management business platform "Xincheng Construction Management", continuously expanding its development track, and has basically achieved a national layout. As of the end of June this year, Xincheng Construction Management has managed more than 90 projects with a total construction area of more than 13 million square meters; it has managed more than 50 commercial complex projects, with an additional signed area of more than 3.52 million square meters in the first half of the year.
According to the list of China's real estate agency construction companies released by the China Index Academy for January-June 2024, Xincheng Construction Management ranks 6th in the industry's "Newly Signed Agency Construction Scale Ranking" and 9th in the "Agency Construction Sales Scale Ranking", with a steady increase in business scale.
Financially robust, building a safe bottom line
The advantages of Seazen Holdings' dual-wheel drive business model continue to emerge, providing the company with a stable blood-making ability. In addition, Seazen Holdings also adheres to a stable and safe financial basic face, continuously optimizes the financial structure, reduces the debt ratio, and ensures smooth financing channels.
In the first half of this year, the cash flow situation of Seazen Holdings continued to maintain a healthy and abundant state. As of the end of the report, Seazen Holdings had a cash balance of 15.782 billion yuan; the net debt ratio was 47%, maintaining a low level; the net operating cash flow was 2.088 billion yuan, which has been positive for six consecutive years.
In terms of reducing debt, Seazen Holdings continued to reduce interest-bearing debt and consolidate the financial basic face. As of the end of June 2024, the company's financing balance at the end of the period was 55.8 billion yuan, a reduction of 1.3 billion yuan from the beginning of the year, and the debt structure was further optimized; the company's joint venture equity interest-bearing debt was reduced to 3.952 billion yuan, a further decrease of 1.256 billion yuan from the beginning of the year.
Seazen Holdings actively repays debts to ensure that every debt is repaid in advance or upon maturity. In the first half of 2024, the company has repaid 1.97 billion yuan of domestic and foreign public market bonds on schedule.
On the financing side, Seazen Holdings has expanded low-cost financing channels. In May of this year, Seazen Holdings successfully issued the first phase of medium-term notes with a scale of 1.36 billion yuan for the year, obtaining full guarantees from China Bond Insurance, with a total subscription multiple of more than 2.7 times, a 3-year term note interest rate of 3.2%, and a 5-year term note interest rate of 3.4%. This is also after Seazen Holdings successfully issued four full guarantees from China Bond Insurance in 2022 and 2023, and obtained policy support from the private enterprise bond financing support tool again this year.Furthermore, relying on the high-quality asset fundamentals of Wuyue Plaza itself and its continuously growing operational strength, the commercial segment continues to bring incremental financing cash flow to the financial statements of Future Land Holdings. From January to August of this year, Future Land Holdings has secured an additional 12 billion yuan in financing, with Wuyue Plaza as collateral.
Under the dual-engine drive, the company's performance continues to improve, adhering to a stable and secure financial position. The future development of Future Land Holdings is worth looking forward to.
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