New City Holdings (601155): Why the Black Swan New City Holdings have stood up
Core point of view: The sales performance of Xincheng Holdings has grown rapidly. Once it is hit by an emergency, when the growth momentum has not been improved, and it will be hit by the epidemic again in 2020, can Xincheng still stand?
I. High-scale growth, external expansion is slightly less than the growth of Xincheng Expressway is known as the dark horse of the industry. Once it encounters the Swan incident, it will still achieve 270.8 billion sales in 2019, an increase of 22%, achieving the first echelon size and the second echelon.The perfect combination of speed.
However, from the perspective of its layout, the Yangtze River Delta region is still heavy, and the expansion outside the base camp needs to be improved.
Second, why does Xincheng Holdings have tight cash flow?
Although Xincheng Holdings’ sales performance has grown rapidly, and its scale has steadily ranked top 10 in the industry, its fund end is facing a shortage. According to analysis, there may be three reasons: First, the investment intensity is large, the equity is relatively high, and the capital demand is large;The repayment is not ideal, and the utilization rate of own funds is not high. Third, the financing advantage is not obvious and the financing cost is 无锡桑拿网 high.
Third, after two consecutive shocks, can Xincheng Holdings still stand?
In 2019, Xincheng Holdings encountered an unpredictable Black Swan incident. In order to save itself, starting in July 2019, Xincheng Holdings implemented multiple measures such as guaranteeing sales performance, increasing rent scale, transferring equity and debts of project companies, and implementing stock incentive plans.The crisis effectively resolved the adverse effects of the emergency on the company.
In 2020, it will be affected by the new coronary pneumonia epidemic again. However, as far as New City Holdings is concerned, the probability of its sales performance in 2020 will still remain high.
The problem that enterprises urgently need to solve is to increase the speed of destocking. If the devaluation of legacy goods cannot be 合肥夜网 achieved smoothly, subsequent sustainable development will be hindered. At the same time, it is imperative to replenish land reserves and optimize the value structure in a timely manner.