Events:
The company released its semi-annual report for 2021, with an operating income of 760 million yuan in the first half of the year, an increase of 15.79% over the same period last year, and a net profit of 80 million yuan, an increase of 24.55% over the same period last
Main points of investment:
Steady growth in performance and steady improvement in profit margins. The company deeply ploughs the property management rigid demand industry, the business performance maintains the steady growth. In the first half of the year, operating income and net profit increased by 16% and 24% respectively compared with the same period last year. Q2 achieved an operating income of 390 million yuan in a single quarter, an increase of 19.09% over the same period last year, and a net profit of 52 million yuan, an increase of 37.38% over the same period last year. Compared with Q1, Q2 revenue / return net profit increased by 4.3% / 57.6%, respectively. The gross profit margin in the first half of the year was 23.69%, an increase of 0.52 percentage points over the same period Through the construction of the "big operation" system, the boundary of the function center was opened horizontally, and the business unit attached importance to process management, during which the expense rate decreased by 1.11% compared with the same period last year, driving the net interest rate to increase by 0.77%, and the overall net profit growth rate of the company was higher than that of operating income
The efforts of expansion will not be reduced, and the incremental contribution can be expected. In the first half of the year, the company signed 63 new property service projects, with a newly signed area of 3.8943 million square meters, and the number of newly signed projects increased by 70% over the same period last year, maintaining rapid growth. At present, the company has signed a total of 624 projects, with a total signed area of 72.1564 million square meters, 280pm and 344 residential / non-residential projects, accounting for 68% of the total signed area, accounting for 32% of the total signed area. On the basis of traditional residential business, the company is committed to the active expansion of non-residential new business type projects. In the first half of the year, the company has successively cut into hospitals, industrial parks, office buildings, cultural travel, government and other diversified formats, and the number of non-residential projects has increased by 39 compared with the end of last year, exceeding the increment of residential projects. Compared with residential projects, the price of non-residential projects is more market-oriented, customers have stronger ability to pay, and the flexibility of contribution to the overall performance of the company can be expected.
Actively participate in community governance and comply with the layout of population trends. The Seventh National population Census has aroused the concern of the whole society about the supply gap of pension and child care services. in June 2021, the National Development and Reform Commission took the lead in issuing the "14th five-year Plan" to actively deal with the implementation Plan of population Aging Project and Child Care Construction. It is proposed that "one old and one small" should be taken as the focus to improve the population service system and expand the effective supply of old-age and child care services. Property companies are rich in residential community resources. Layout of old-age care, care and other businesses have a natural entry advantage. The company is located in Zhejiang Province. In the construction of the common prosperity demonstration zone in Zhejiang Province, the equalization of basic public services has been highlighted, and the development of inclusive care and pension services has become the core of the work. Seizing the opportunity, the company set up Hangzhou Nandu Yuexuan Endowment Service Co., Ltd., a wholly-owned subsidiary, to participate in the operation of Hangzhou Gudang Street livelihood complex project, covering community party and government services, community canteens, child care, day care centers for the elderly and other livelihood services, and fully participate in community governance and community livelihood projects in line with the national guidance. After accumulating experience, it is expected to promote in the company's core business areas. Form the advantage of differentiated property service.
Maintain the company's "overweight" rating: the company is one of the few independent market-oriented property companies in the A-share market, which has formed unique brand characteristics. the newly signed projects and new business type expansion provide a solid foundation for the company's performance growth. we are optimistic about the company's continued development in new areas. It is estimated that the EPS of the company from 2021 to 2023 will be 1.29,1.47 and 1.65 yuan per share respectively, and the corresponding share price PE will be 10.11,8.91,7.94 times respectively. Maintain the company's "overweight" rating.
Risk tips: the risk of decline in the number and area of newly signed orders; the risk of rising labor costs; and the risk aggravated by the competition of stock projects.