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Lead
A-shares are experiencing an all-time low, and many investors are taking a wait-and-see attitude towards future developments.
The real estate sector is facing financial constraints due to policy fluctuations, but the monetization and resettlement policy has attracted market attention, which also provides potential investment opportunities for some low-priced stocks.
This article will provide an in-depth analysis of the stock of a leading A-share company, and although its current share price is only 2 yuan, the controlling shareholder announced a plan to increase its holdings, showing confidence in the company's future.
The introduction of a monetized resettlement policy.
Since the pandemic in 2020, the global economy has entered a long period of recession.
In the face of the economic winter, the mainland is also in full recovery, the state has adopted a variety of policies, including the policy on real estate monetization and resettlement on September 8, which has aroused great attention from the market, and the implementation of this policy will drive the recovery of the real estate sector.
This is inseparable from the policy of "housing not speculation".
The introduction of the new policy has undoubtedly injected a shot in the arm for the real estate sector, and the monetized resettlement of real estate means that the monetized resettlement will replace the in-kind resettlement, and the resettlement subsidy will be issued to compensate the real estate.
The implementation of this policy will greatly reduce the cost of real estate development investment and construction, and also improve the capital use efficiency of existing housing.
In the long run, it will help to achieve a stable and healthy development of the real estate market and avoid overheating the market.
But at the same time, it also brings certain risks to the real estate market, and the problem of capital has become the top priority.
It is already difficult for land finance to support the development of the local economy, and now the implementation of the monetized resettlement policy requires local governments to come up with more funds to guarantee it.
When local governments can't come up with more money, they may turn their attention to the stock market or the real estate market.
This has led to a lot of investment opportunities in penny stocks, because once the local government funds flow in, it will definitely affect the overall pattern of the A-share market.
At the same time, some real estate stocks are also facing lower stock prices, which also provides a good time for funds to enter the market.
According to statistics, 471 of the listed companies in mainland China have a share price of less than 5 yuan, and 82 of them have a stock price of less than 2 yuan.
Among them, 38 companies have a market value of less than 1 billion yuan, and most of these companies are in a loss-making state, but there are also some companies that have small market capitalization and not much profit, but the market has high expectations for them.
However, among the many penny stocks, the controlling shareholder of one stock has increased its holdings significantly, and the stock price has also broken through the previous stock price bottom, and this stock is the stock of Liu's Real Estate.
Under the premise of the introduction of real estate policies, the rise of real estate stocks is possible, how will the share price of Liu's real estate change?
The purchase restriction policy has been loosened.
Liu Moumou, the controlling shareholder of Liu's Real Estate, has previously issued an announcement on the increase in holdings, which shows that between September 13 and September 15, Liu Moumou has increased his holdings by 6.9 million shares, and his position has reached the level of 29.33% after the increase.
At the same time, Liu's Real Estate also said that because there is still a lot of room for the shares held, nearly 1.3 billion shares can be transferred, so in the next 4 months, Liu Moumou will continue to increase his holdings of 300 million yuan.
This news undoubtedly made Liu's real estate, which has a good performance, attract many investors for a while.
From the financial data, we can see that Liu's real estate's operating income and profit have increased significantly.
Among them, the operating income in 2022 will reach 333.6 billion yuan, an increase of 71.1 billion yuan over 2021, and the net profit will also increase from 7.7 billion yuan in 2021 to 12.9 billion yuan in 2022, with an overall increase of more than 50%.
Such a high-quality performance is eye-catching.
In addition, the company's operating income in the first half of 2023 will also reach 194.3 billion yuan, accounting for about 58% of the annual operating income in 2022.
The net profit in the first half of 2023 has also reached 2.8 billion yuan, and it has now reached 21% of the net profit for the whole year of 2022.
It can be seen that Liu's Real Estate has the potential to further improve in terms of revenue and profit.
So what kind of profit expectation will Liu's Real Estate give?
According to analysts' forecasts, Liu's real estate net profit will reach 9.8 billion yuan in 2025, while its current market value has only reached 40 billion yuan.
Based on this forecast, if the price-to-earnings ratio of Liu's real estate is roughly estimated to be 4 times, the price-to-book ratio is 0.88 times.
This clearly shows that Liu's real estate stock is still undervalued.
However, in terms of gross profit margin, Liu's real estate gross profit margin has decreased slightly, from 48.4% in 2021 to 40.5% in 2022.
Why is that?
This may be related to the sector of Liu's Real Estate, which has three main segments in its core business, namely real estate sales, real estate leasing and real estate management.
Among them, the real estate sales sector definitely occupies the lion's share, reaching 96%.
The gross profit margin generated by the real estate sales segment is relatively low, so it also dragged down the overall gross profit margin.
However, it is worth noting that the gross profit margin of the real estate leasing segment and the real estate management segment is very high.
Therefore, if Liu's Real Estate can successfully list these two sectors, its overall gross profit margin will inevitably increase significantly.
Although the current share price of Liu's Real Estate is low, from the perspective of its price-to-earnings ratio and price-to-book ratio, its upside is still very large.
The controlling shareholder increased his holdings.
Liu's real estate controlling shareholder Liu Moumou also said in the announcement that he would pledge all his assets to obtain funds.
In fact, 70% of the funds obtained by Liu Moumou will be used to repay the pledged loan, and 30% will be used to increase his shareholdings.
Judging from the data, the financial situation of Liu's real estate is booming.
But in the eyes of the outside world, the controlling shareholder of Liu's Real Estate is constantly paying for the decline in stock prices.
So why did the controlling shareholder of Liu's Real Estate increase its holdings?
Will the stock price really go up?
From the perspective of Liu's Real Estate, the industry in which Liu's Real Estate is located is inseparable from the real estate industry.
Since the outbreak of the epidemic, the real estate industry has experienced a sharp decline, and the industry has also fallen into a trough period.
However, with the strong support of national policies, the real estate industry is gradually recovering, which also promotes the development of Liu's real estate.
But in any case, only when the market value rises can the shareholders' money not be wasted.
Liu's real estate shareholders' confidence in the company came as a surprise, and their behavior is rare in today's market environment.
Suddenly, Liu's Real Estate attracted a lot of attention, and the stock price also reversed, and when the stock price began to rebound, the shareholders' decisions began to change.
If shareholders increase their shareholdings, it proves that they have more confidence in the company and reflect greater controlling value.
At this time, it is more necessary to inject external funds to enhance the company's strength.
This move not only gave hope to external funds, but also increased market recognition.
The company continued to recover, performed well, and achieved the expectation of growth in revenue, which gave strong support to external funds.
This makes the outside world look forward to the follow-up development of Liu's real estate.
At the same time, it also points out the direction for other companies that are still in the trough, and companies need to remain calm and take action to alleviate market uncertainty when facing difficulties.
epilogue
In the current market environment, it can also be a challenge to be able to identify other stocks with lower valuations.
It is possible that the money will flow to other stocks that are also at low prices, and it is possible that it will also flow to real estate-related stocks.
At the same time, the new energy industry is also likely to become a hot spot for capital inflows.
Liu's real estate has become the focus of investors' attention after the price adjustment, but the company's development is also closely related to the market environment.
When choosing stocks, investors should not only focus on financial data, but also consider the policy environment and industry trends.
As the market looks forward to economic recovery, more investment opportunities are likely to emerge, especially in the technology and innovation sector.
The controlling shareholder's confidence in the company's future may also be a bellwether for market confidence, and investors should pay attention to such signals.