Poly Real Estate Group Co., Ltd. - Outstanding Performance - by liz
Poly Real Estate Group Co., Ltd.
Public (SHA: 600048)
Company Facts
Poly Real Estate Group Co. Ltd. was known as Guangzhou Poly Real Estate Development Company, which was initiated by one of the subsidiaries of China Poly Group Co. Ltd. - Poly Southern Group Co. Ltd. in Guangzhou 1992. Approved by the former National Economy & Trading Committee in year 2002, raised by Poly Southern Group Co. Ltd., Guangdong Huamei Educational Investment Group Co. Ltd., and 16 individual investors, Poly Real Estate Group Co. Ltd. was officially established.
The main of the company are real estate development, sales, rental, and real estate management. The company has projects in 18 economical central cities country-wide, and currently has 61 projects in process, which will contribute 24 million square meters commercial property for sale. In addition, the company marginally has 10 million square meters reserved lands in ten cities.
Financial Overview:
Related Companies:
Holding company:
Poly Southern Group Co. Ltd., percentage of ownership: 48.97%
Holding Subsidiaries:
Poly Huannan Co. Ltd.
Changsha City Poly Real Estate Management Co. Ltd.
Shanghai Poly Jianyong Real Estate Co. Ltd.
Beijing Jinchenghua Real Estate Development Co. Ltd.
Poly (Shenyang) Real Estate Development Co. Ltd.
Poly (Changchun) Real Estate Investment Co. Ltd.
Shanghai Jianjin Real Estate Co. Ltd.
Guangzhou Siruida Real Estate Agency Co. Ltd.
Shenyang Shengxing Laboratory Investment & Development Co. Ltd.
Poly Guangzhou Real Estate Management Co. Ltd.
Guangzhou City Jiali Decoration Engineering Co. Ltd.
Poly (Chongqing) Investment Co. Ltd.
Dandong Poly Tianci Real Estate Development Co. Ltd.
Yueyang Poly Realty Co, Ltd.
Guangzhou Poly Exhibition Services Co. Ltd.
Poly (Changchun) Real Estate Management Co. Ltd.
Poly (Wuhan) Real Estate Development Co. Ltd.
Guanzhou Poly Licheng Real Estate Development Co. Ltd.
Shenyang Guangtian Real Estate Development Co. Ltd.
Guangzhou Fuli Building Installment Engineering Co. Ltd.
Shenyang Guangtian Real Estate Development Co. Ltd.
Nanchang Kaisi Real Estate Management Co. Ltd.
Changsha Yongfeng Eco-zoo Construction Development Co. Ltd.
Shenyang Hengfu Real Estate Development Co. Ltd.
Foshan City Shunde District Poly Real Estate Development Co. Ltd.
Poly (Beijing) Real Estate Development Co. Ltd.
Poly Chongqing Real Estate Management Co. Ltd.
Poly Bogaohua (Wuhan) Real Estate Development Co. Ltd.
Guangzhou Huachu Real Estate Development Co. Ltd.
Poly (Baotou) Real Estate Management Co. Ltd.
Poly (Wuhan) Real Estate Development Co. Ltd.
Guangzhou Deli Construction Regulatory Co. Ltd.
Chengdu City Xindu District Poly Investment Co. Ltd.
Poly Anxin (Qingdao) Real Estate Development Co. Ltd.
Guangzhou Science City Poly Real Estate Co. Ltd.
Poly Guangzhou Real Estate Development Co. Ltd.
Guangzhou Poly Realty Club Management Co. Ltd.
Poly Real Estate Management (Beijing) Co. Ltd.
Shanghai Poly Real Estate Development Co. Ltd.
Poly (Yangjiang) Real Estate Development Co. Ltd.
Wuhan Miaoshan Tengfei Real Estate Management Co. Ltd.
Guangzhou Poly Digital Technology Co. Ltd.
Shanghai Jianqiao Real Estate Co. Ltd.
Guangzhou City Poly World Trade Investment Co. Ltd.
Shanghai Junlan Realty Co. Ltd.
Poly Real Estate Management Shenyang Co. Ltd.
Poly (Qingdao) Realty Co. Ltd.
Nanchang Yagao Realty Co. Ltd.
Guangzhou Fuli Construction Design Co. Ltd.
Shanghai Chengqian Real Estate Development Co. Ltd.
Hengli (Hong Kong) Realty Co. Ltd.
There are quiet a few more subsidiaries.
Stock Health:
As on 31t July, 2008
Open: 16.83 High: 16.90 Low: 15.30 Close: 15.60 Vol.: 20,785,100
Business Performance:
Unite: RMB 10,000
| Item | 1st quarter 2008 | 2007 | 2006 | 2005 |
| Main Business Income | 538133.06 | 811523.49 | 403121.22 | 235641.88 |
| Profit Margin | 182964.50 | 240309.01 | 105046.47 | 65569.50 |
| Net Profit Margin | 103401.19 | 148908.80 | 67145.57 | 40684.64 |
| Net Returns on Assets % | 8.03 | 12.49 | 18.46 | 42.81 |
Daily Stats (last one month):
| Date | Open | High | Low | Close | Vol. |
| 2008-07-31 | 16.83 | 16.90 | 15.30 | 15.60 | 20,785,100 |
| 2008-07-30 | 17.41 | 17.80 | 16.66 | 16.85 | 16,851,000 |
| 2008-07-29 | 16.35 | 17.36 | 16.04 | 17.17 | 30,256,500 |
| 2008-07-28 | 17.25 | 17.75 | 16.70 | 16.85 | 44,079,100 |
| 2008-07-24 | 15.49 | 16.91 | 15.40 | 16.90 | 45,698,800 |
| 2008-07-23 | 15.81 | 15.96 | 15.08 | 15.37 | 17,800,100 |
| 2008-07-22 | 15.25 | 15.94 | 15.21 | 15.61 | 23,470,300 |
| 2008-07-21 | 14.00 | 15.66 | 13.91 | 15.36 | 29,020,400 |
| 2008-07-18 | 14.25 | 14.58 | 13.33 | 14.40 | 24,686,900 |
| 2008-07-17 | 14.60 | 14.90 | 13.70 | 13.94 | 25,036,200 |
| 2008-07-16 | 14.75 | 14.75 | 13.85 | 14.35 | 33,025,300 |
| 2008-07-15 | 16.82 | 17.06 | 15.12 | 15.12 | 39,943,900 |
| 2008-07-14 | 16.70 | 17.38 | 16.35 | 16.80 | 24,363,800 |
| 2008-07-11 | 17.31 | 17.71 | 16.50 | 16.91 | 35,296,400 |
| 2008-07-10 | 17.28 | 18.80 | 16.72 | 17.74 | 54,364,800 |
| 2008-07-09 | 16.25 | 17.28 | 16.25 | 17.28 | 35,716,400 |
| 2008-07-08 | 15.50 | 16.16 | 15.25 | 15.71 | 26,855,000 |
| 2008-07-07 | 13.93 | 15.53 | 13.92 | 15.53 | 28,466,000 |
| 2008-07-04 | 13.49 | 14.74 | 13.34 | 14.12 | 22,978,100 |
| 2008-07-03 | 12.80 | 14.03 | 12.60 | 13.54 | 12,615,700 |
| 2008-07-02 | 12.65 | 13.40 | 12.60 | 13.18 | 9,848,200 |
| 2008-07-01 | 13.48 | 13.49 | 12.75 | 12.81 | 7,471,600 |
| 2008-06-30 | 13.00 | 13.63 | 12.90 | 13.49 | 9,410,100 |
| 2008-06-27 | 14.00 | 14.08 | 13.22 | 13.29 | 21,243,800 |
| 2008-06-26 | 14.50 | 15.10 | 14.21 | 14.69 | 22,241,300 |
Recently, the company has released its half-year’s performance report, which shows that the business income and net profit in the first half of year 2008 was RMB 5.38 billion Yuan, and RMB 1.03 billion Yuan separately. It has increased by 156.40% and 272.18% separately comparing with the same in year 2006.
Notably, under the macro-control from Chinese government, from January to May, real estate sales has been slow down by 7.2% country-wide, while Poly Real Estate Group Co. Ltd. has exclusively made 39.4% progresses in its sales. The secret is lying in its advantages in low costs, famous brand, and the fast capital revolving strategy.
I would like to emphasis on the dramatic growth in the company’s net profit margin, which highlights the outstanding performance of the company, It is exceptionally excellent because of the realty industry is now in an overall depression.
Firstly, the net profit margin increase was benefited from the sales price increase in premium residential properties, which is also the company’s main focus. Secondly, it was contributed largely by the successful costs control campaign carried by the company in its large-scale real estate projects. Thirdly, the company has griped the opportunity of small and middle size localized companies struggling for survive under the realty market’s depression, and made quick profits outside its main business by purchasing and reforming Guangzhou Yishun Company. Last but not the least, the government’s policy regarding to business income tax deduction has also made its fair contribution.
From the lights of the above, investors are able to understand that the management of the company has sharp business vision and effective implementation tools, along with its strong capital supports, Poly Real Estate Group Co. Ltd. has the ability to transfer the market pressures into its competitive advantages, thus, I assume in the second half of the year, the company will continuously presenting ever greater performance.
Therefore, I strongly recommend this stock to investors as it is now a good opportunity to buy-in and expecting fruitful rewards by the end of this year, and it is a comparatively safe investment for long-term investors as well. For existing shareholders, one can either enlarge holdings, or play it safe by sticking with what they already have. The expectant price is marginally RMB 61 Yuan in long term.