Wealth curve

Housing Enterprise Dexin China's IPO debt to Hong Kong under

At the beginning of the new year in 2019, the mainland-listed housing enterprises will add new troops. Dickson China has completed its public offering on February 19 and is expected to be listed on the main board of the Hong Kong Stock Exchange on February 26. DXN China will sell a total of 532 million shares, including 53.2 million shares of China Hong Kong Public Offer and 478 million shares of international offerings. The offer price range is HK$2.32/share-3.25 HKD/share.
According to the letter of China's prospectus, it is assumed that the offer price is HK$2.79/share, which is the median of the above indicative offer price, and the over-allotment option is not exercised. Deutsche China is expected to raise net proceeds. It is about 1.367 billion Hong Kong dollars.
Deep-growing Zhejiang Base Camp
Maori Expressway
is a comprehensive real estate developer in Zhejiang Province. There are 107 property projects in different stages of development in Dexin China, of which more than 80% are in Zhejiang Province. Hangzhou, Wenzhou and Huzhou have 28, 26 and 18 projects.
As of November 30, 2018, Dexin China's land bank totaled approximately 6,933,900 square meters, of which 5,889,700 square meters were located in Zhejiang Province, accounting for 85.07%. As a result, the company's strategy of deepening the Zhejiang base camp can be seen.
It is worth noting that according to the letter of China's prospectus, the gross profit margins of the company in 2015-2017 and the first three quarters of 2018 were 10.4%, 13.0%, 23.4%, and 32.4%, respectively; They were 1.1%, 7.4%, 12.8% and 17.1% respectively. Dexin China said that since 2014, the company has shifted its investment focus to key cities in Zhejiang Province and adjusted its land acquisition strategy to achieve growth in gross profit margin.
In this regard, Qian Xiangjin, a special professor of Zhejiang University Management College, told reporters that the large-scale housing market and the large increase in housing prices in major cities in Zhejiang Province are the main factors for the surge in German profit margin. However, due to the cyclical nature of the real estate market, as a series of regulatory policies continue to advance, the pressure on housing enterprises will become more obvious. If some companies' business layout is too concentrated, they will be insufficiently redundant when dealing with risks, and their performance will be affected. .
Dickson China also mentioned in the risk warning of the prospectus: "The company's business and prospects depend to a large extent on China's economic situation and the Chinese real estate market, especially in major cities in the Yangtze River Delta region.which performed. "
At the same time, Dickson China also stated that in addition to continuing to consolidate its leading market position in Zhejiang Province, it will also expand its business to the Yangtze River Delta and major cities across the country, while continuing to increase its cost-competitive quality land bank.
Capital pressure
Will continue to expand debt
The reporter noted that from 2015 to 2017, Dexin China achieved net profit of 64.7 million yuan, 513 million yuan, 839 million yuan, compound annual growth. The rate reached as high as 260.3%, and the net profit in the first three quarters of 2018 was 981 million yuan, an increase of 319.5% over the same period of the previous year. Meanwhile, at the end of 2015, the end of 2016, the end of 2017 and the end of the third quarter of 2018, the current assets of Dexin China The total amount was 14.873 billion yuan, 19.439 billion yuan, 32.409 billion yuan, 41.758 billion yuan.
However, while the scale of business expanded rapidly, high financial costs and rising debt pressures followed. At the end of 2015, 2016 At the end of the year, the end of 2017 and the end of the third quarter of 2018, the net gearing ratio of Dexin China was 278.70%, 435.20%, 275.70% and 103.1% respectively.
In this regard, Dexin China explained that the previous net assets and liabilities Maintaining at a high level is due to the rapid growth of the business during the relevant period, and the business is mainly funded by external borrowing. Most of the projects in 2016 are in the investment stage, and the borrowings increase. In the past two years, the decrease in the index was due to the accumulation of profits.
In addition, as of September 30, 2018, Dickson China's outstanding loans totaled 10.699 billion yuan, including bank loans of 2.891 billion yuan. From the age of aging, it needs to be at the end of September 2019 and the end of September 2020. The interest-bearing loans repaid before were respectively 5.806 billion yuan and 2.676 billion yuan. At the same time, in the first three quarters of 2018, the interest expenses of China Telecom reached nearly 280 million yuan.
"Securities Daily" reporter contacted Dickson China, the other party said Inconvenient to respond, all the prospectus has been disclosed. The special professor of Zhejiang University Management College Qian Xiangjin pointed out that the listing of Dexin China in Hong Kong is a good thing, which is conducive to the company's expansion of influence, conducive to capital structure optimization, and broaden financing channels. Relieve financial pressure.
Dexin China mentioned in the prospectus that about 60% of the company’s raised funds will be usedAbout 30% of the development cost of existing properties will be used for land acquisition and construction costs of potential property development projects, as well as for urban properties and acquisition of land for current operations and planned expansion. Approximately 10% will be used for general purposes. Company and working capital.
The concentration of the real estate industry has increased rapidly, forcing small and medium-sized housing enterprises to increase their land reserves and continue to expand their scale. In 2018, Zhengrong Real Estate (5.58, -0.02, -0.36%), Hongyang Real Estate (2.88, -0.02, -0.69%), Midea Real Estate (16.46, 0.14, 0.86%), Dafa Real Estate (4.25, -0.03) , -0.70%), Hengda Group and other domestic enterprises have been listed on the main board of the Hong Kong Stock Exchange. For Dexin China, which has the dream of “100 billion yuan”, its sales of less than 30 billion yuan in 2017 are still far from the same. After the listing, whether it can leverage the capital to step on the speed of development "?"