Operating cash flow continues to flow positively into Yuexiu Real Estate (00123). Operational resilience continues to increase

After the real estate industry has entered a stage of high-quality development, competition among housing enterprises is shifting from scale expansion to competition for management quality and comprehensive strength. Stable cash flow, healthy asset structure and the ability to develop continuously have become an important foundation for enterprises to cope with changes in the industry and seize market opportunities.

Zhitong Finance App learned that on August 28, Yuexiu Real Estate (00123) disclosed the 2026 interim results. In the first half of the year, the company's net operating cash flow inflow was 13.77 billion yuan, maintaining a continuous positive inflow, and endogenous hematopoietic capacity continued to increase.

The impressive cash flow performance was driven by both improved operating capacity and optimized asset structure. The company continued to strengthen its ability to coordinate capital, and the contract sales repayment rate increased by 10 percentage points to 71% year-on-year in the first half of the year. At the same time, the company actively promoted the optimal allocation of existing assets, and achieved a capital return of 4.46 billion yuan by transferring some assets to the parent company Yuexiu Group, further improving the efficiency of capital use and focusing on the development of the main residential development business.

As of the end of June, Yuexiu Real Estate's cash balance reached $51.5 billion, up 10.1% from the beginning of the year. Adequate capital reserves not only enhance operational stability, but also provide solid support for the company to continue to focus on core cities and seize high-quality resource opportunities.

Strong endogenous hematopoietic capacity is also directly transformed into credit endorsement in the capital market, driving the financing side to a new low. Against the backdrop of the tight overall financing environment in the industry, Yuexiu Real Estate's weighted average annual interest rate fell 25 basis points year-on-year to 2.91% in the first half of the year, falling below 3% for the first time, reaching the low cost financing level of leading central state-owned enterprises and housing enterprises, and entering the first tier of financing costs in the industry.

At the same time, the company's domestic and foreign financing channels have always remained unobstructed. A number of bonds were issued in the first half of the year. Among them, the 1.9 billion yuan domestic corporate bond issued in June had a coupon of only 1.97%, further highlighting the financing capacity.

By the end of June, Yuexiu Real Estate's net loan ratio had dropped further to 49.2%, and the short-term cash debt ratio had reached 2.1 times. The “three red lines” continued to maintain the green tier, the balance and liability structure continued to be optimized, and both S&P and Fitch maintained their investment grade ratings.

Yuexiu Real Estate insists on putting equal emphasis on steady management and strategic layout. While maintaining financial security boundaries, it continues to focus on core cities to obtain high-quality resources to lay a solid foundation for future development. The company's total land reserves are about 16.57 million square meters, accounting for 94% of Tier 1 and 2 soil reserves; the total unsold value is about 290.5 billion yuan, of which the six core cities account for about 73%, and the asset quality is at the forefront of the industry.

What has more weight is the performance safety cushion that has already been locked in. By the end of the period, the company's sold and unrecorded sales reached 132.4 billion yuan, providing stable support for future business performance.

As the industry's valuation logic shifts from scale expansion to safety and quality of operations, the capital market is rapidly concentrating on high-quality housing enterprises with steady operations, and Yuexiu Real Estate has also become a target that many brokerage agencies are unanimously optimistic about.

Zhongtai Securities believes that Yuexiu Real Estate's financial indicators are stable in the green zone, the financing channels are smooth, and high-quality land storage has established a solid foundation for long-term development. Currently, the valuation is low, maintaining the purchase rating. CITIC Construction Investment also pointed out that the company has sufficient cash reserves and outstanding resilience to risks. In the first half of the year, it continued to focus on replenishing and storing energy in high-energy cities to maintain the purchase rating.

Industry analysts said that future industry competition will focus more on business quality and development resilience. Yuexiu Real Estate will adhere to steady management and equal emphasis on strategic layout, continuously improve the efficiency of resource allocation, and consolidate the foundation for long-term development.