Main points of investment:
21H1 annual performance + 10% year-on-year, in line with expectations, sales expenses, minority shareholder profit and loss increased more. 2021H1 annual revenue of 11.9 billion yuan, year-on-year + 30%; net profit of 1.14 billion yuan, + 10% year-on-year; deduction of non-return net profit of 1.12 billion yuan, + 11.7%; basic earnings per share of 0.30 yuan, + 7.14% of the same period last year. The gross profit margin and net profit margin of the company are 38.6% and 4.29% respectively, which are + 0.85pct and + 0.28pct respectively compared with the same period last year. Residential sales, commercial real estate sales, real estate leasing, hotel services and property management are 29.8% (year-on-year-3.4pct), 40.1% (year-on-year + 4.2pct), 92.6% (year-on-year + 6.1pct), 61.5% (year-on-4.8pct) and 99.3% (year-on-0.4pct) respectively. The company's three-fee rate is 9.0%, year-on-year + 1.0pct, in which sales, management and financial rates are year-on-year + 1.4pct,-0.5pct and + 1.0pct, respectively. The lower growth rate of the company's performance than revenue is mainly due to: 1) sales expenses of 430 million yuan, year-on-year + 91.4%; 2) minority shareholders' profit and loss of 1.04 billion yuan, + 49.6% of the same period last year.
In the first 7 months, sales increased by + 94% compared with the same period last year, with a land / sales area ratio of 51% and cautious land acquisition. From January to July in 21 years, the company signed a contract to sell 19.6 billion yuan, which was + 94% compared with the same period last year. The contracted sales area reached 900,000 square meters, + 100% year on year, and the average sales price in the first half of the year was 21300 / ping,-9.3% compared with the same period last year. The company's 21-year plan to achieve contract sales of 38 billion yuan, year-on-year + 40% of the annual plan in January-July 21 completed 52% of the annual plan. By the end of June, the company had an inventory value of 21.8 billion yuan and planned supply of 23.6 billion yuan in the second half of the year, totaling 45.4 billion yuan. Rich available resources to help complete the annual sales plan. From January to July in 21 years, the company acquired three projects in Hangzhou, Changsha and Ningbo, with a new capacity area of about 460,000 square meters, a total land amount of 4.57 billion yuan, rights and interests of 2.33 billion yuan, accounting for 51% of the total. The amount of land / sales is 23.3%, and the area of land / sales is 51.1%. The average floor price is 9935 yuan, and the average price ratio of land to sales is 45.6%.
21H1 rental income is + 29% year-on-year, the three red lines are firmly in the green file at the end of the reporting period, and the financial situation is still sound. The company's 21H1 rentable real estate has a floor area of about 1.73 million square meters, with an occupancy rate of about 86%, a year-on-year + 9.0pct, and a rental income of about 650 million yuan, an increase of about 29% over the same period last year. The company plans to achieve rent + property management fee income of about 1.49 billion yuan for the whole year, corresponding to + 30% of the same period last year. The company's pre-debt ratio is 63.3%, year-on-year + 2.3pct, net debt ratio is 18.83%, cash short-debt ratio is 2.10 times, the three red lines are firmly in the green file, and the financial situation is still sound.
Investment advice: sound performance, rapid sales growth, maintain the "buy" rating. The company implements the group's integrated two-wing strategy, with a high-quality residential + commercial land reserve of nearly 2000 billion goods, accounting for 85% of the first and second line. The asset quality is high, the management thinking is changing actively, and the vision of compound sales growth rate of more than 40% in the next five years is put forward. We maintain the 2021-23 forecast of earnings per share of 0.52, 0.62, 0.72 yuan, respectively, corresponding to the 21PE of 6.7X, maintaining the "buy" rating.
Risk hint: the company's sales performance is not as expected, and the rent of the property held is not as expected.