July 1, 2022
Direction (DIRR3), Tent (TEND3) and JHSF (JHSF3) provide solid operational data;  stock closing 8%

Direction (DIRR3), Tent (TEND3) and JHSF (JHSF3) provide solid operational data; stock closing 8%

Yesterday’s session was a rebound for the construction sector, in a week packed with operational previews from several companies.

This Thursday (20) had fallout with trend numbers (DIRR3), considered very positive, as well as Tenda (TEND3(e JHSF)JHSF3). The session was once again one of the gains for the sector, also amid the scenario of lower interest rates on key futures contracts here, with DIRR3 closing 8.15% higher, at R$12.07, JHSF shares rose 4.44% (5.17 R$) when, at the same time, advancing TEND3 by 7.35%, at 15.91 Brazilian Real.

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directional (DIRR3): closing the year with a golden key

Direcional recorded a record total sales value (PSV) of R$3.14 billion in 2021, representing an increase of 78%. In the fourth quarter, consolidated launches totaled R$693 million. Consolidated sales expanded 27.7% in the fourth quarter from a year earlier.

For Credit Suisse, the company delivered an off-curve result within low income with record sixth-quarter sales in less than two years. The pace of sales did not slow down and Riva continued to operate “at full speed”.

Analysts note that the company managed to generate cash of R$18 million last quarter, during a quarter in which it expected to acquire raw materials and begin operations.

This year’s launches were R$2.7 billion (60% Direcional and 40% Riva).

“In our conversations with clients, we have observed greater search for relative players within the sector and greater interest in regards to Direcional. Some investors have confirmed that the company is moving towards strengthening the ecosystem with truly innovative initiatives that may gain importance over the coming quarters,” the credit notes.

Bradesco BBI also highlights that Direcional, once again, delivered strong operating numbers in the quarter, “being another strong period closing an impressive year”, with the following highlights: 1) Advance sales grew in the quarter, a record high in its history, Despite the noticeable slowdown in launches; and 2) the company showed an increase in the average unit price sold for its Direcional and Riva segments, without hurting its VSO (sales on offer), which remained stable in the quarter.

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“However, we expect the company to continue to deliver strong operating and financial numbers (35% gross margin),” notes BBI, which has a superior recommendation (above market average performance) for Direcional’s share, with a target price of R$20.

Itaú BBA also highlights that launches have slowed compared to tough third-quarter comparisons, while presales hit another record high. It is worth noting that the strong sales performance in the third quarter was driven by the number of RIVA projects. The bank maintains an outperformance rating for Direcional, and a target price of R$20.90, compared to Wednesday (19)’s quote of R$11.16.

tent (TEND3): non-quartile solid numbers

Tenda, in turn, recorded R$836.2 million in general sales value (PSV) at launch in the fourth quarter, down 6% from the year-over-year comparison.

The company ended 2021 with PSV of R$3.1 billion, an increase of 15% over the year-over-year comparison. In the last three months of the year, 17 projects were launched with a total of 5656 units.

Bradesco BBI notes that while it is true that Tenda’s quarterly operating numbers are nominally weaker than in previous quarters, they appear relatively resilient when compared to the deterioration observed in the low income market scenario – mainly in Group 2 of the yellow green house.

In this way, the bank considers the increase in the volume of launches positive, accompanied by a decent sales volume. The bank maintains an outperformance rating for Tenda, and a target price of R$28.00.

Credit noted that the company reported neutral and consensus data. Launches and sales continued well, and Tenda continued its pricing strategy in an effort to reduce the pressure of rising costs on its margins.

Despite the higher prices, the company managed to keep its sales pace relatively stable, which was the highlight of the quarter. However, while acknowledging that the valuation appears discounted on a relative basis, he maintains a cautious view regarding margin recovery and short-term employment inflation. Therefore, it maintains a neutral rating for the time being.

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XP says Tenda delivered strong operating numbers, driven largely by strong launches of R$836 million in Q4 2021 (Q4 of 21), totaling R$3.1 billion in 2021, up from R$2.7 billion in 2021. 2020

The brokerage firm does not see this as a catalyst for the stock, although it does follow a positive view of the company, based on an attractive valuation, trading at 6 times the expected price-to-earnings for 2022.

JHSF (JHSF3): highlight the shopping malls section

JHSF reported net sales of R$340.2 million in the fourth quarter, up 28.9% y/y, but down 10.1% q/q. The real estate project was the highlight, reaching R$212.9 million in the last three months of the year, totaling R$588.2 million in 2021. In addition to the real estate project, which accounted for 37% of total sales in 2021 and 63% of total sales in 4q21;

Net sales grew 28.9% year-over-year, reaching R$340.2 million in the quarter, totaling R$1.6 billion in 2021 compared to R$1.3 billion in 2020.

XP indicates that net sales velocity is at a solid level, reflecting pent-up demand in the high-income segment and JHSF products, despite concerns about the outlook for mortgage interest rates.

In the shopping mall segment, consolidated sales were up 39% compared to the fourth quarter of 2019, supported by Shopping Cidade Jardim (up 61%) and Catarina Outlet (up 33%) due to relaxed restrictions, resulting in strong same-store sales. (SSS), an increase of 30% compared to the fourth quarter of 2019. XP maintains a buy recommendation and a target price of R$9.70 per asset.

Itaú BBA commented that the shopping mall division was once again the most prominent, with a strong increase in total sales compared to 2019 – mainly in Shopping Cidade Jardim and Catarina Fashion Outlet, maintaining the good moment for the premium and luxury segment. Sales in the residential division were practically flat in the quarter. The bank maintains an outperformance rating of JHSF, and a target price of R$8.20.

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