报告名称：China Vanke Alert(000002)Access China conference 2016 highlights
报告类型：点评报告
报告日期：2016-01-18
研究机构：德意志银行
股票名称：万科Ｂ,万科Ａ,万科企业,万科H代
股票代码：200002,000002,02202,299903
页数：1
简介：China Vanke attended our Access China 2016 conference in Beijing and thefollowings are the key takeaways:
Commenting on the shareholding structure, management said Mr. Wang Shi,Chairman has expressed his view that Baoneng Group (currently the largestshareholder of Vanke) is not welcomed to be the largest shareholder. Inaddition, Baoneng has not communicated with Vanke of its intention forincrease in stakes. Management believed Baoneng would like to take over thecontrol over the company which will result in uncertainties for the operation.Currently the board does not contain any member from Baoneng. If Baonengwould like join the board of directors of Vanke, shareholder approval is needed.
Currently the market share of Vanke is about 1.6% in terms of sales area. Thecompany plans to triple its market share to about 5% in the next few years.Moreover, management believed the golden age of China’s property markethas ended and the total sales volume in the sector might not be as high asbefore.
Net gearing of the company as of Sep-2015 was about 23%. Managementguided the net gearing as of end-2015 would be still below 30%.
Vanke has conducted more land acquisitions in 2015 than 2014. In 2016, thecompany would like to expand the size of its land bank to be enough for threeyears of development, indicating a larger GFA in land acquisition than the GFAsold will be done in this year.
Due to the increase in land cost, the company is considering entering thesmaller cities cautiously. It will closely monitor the inventory level in some ofthe smaller cities. Moreover, the company will also join with others for landacquisitions. About 70% of the land acquired in 2015 was attributable to thecompany. Vanke could accept lower ratio of ownership as this would enablethe company to better utilize its capital on land purchase.
Vanke is also looking for good M&A opportunities. However, after theloosening in late 2014, developers have been less willing to sell their assets asthey can sell the units in the market for cash. Management believes currently itis really a good timing for M&A.
Vanke has been expanding into other business such as logistics. Thecontribution from this business is still insignificant when compared to theproperty development. Vanke would continue to expand into such businessesfor diversifications and recurring income.
The major reason for Vanke to engage in overseas development projects is tolearn from its partners on development and management, it is believed thatwill be beneficial to its domestic business in the future.
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