Event: on August 22, the company released its semi-annual report of 2021, with revenue of 764 million yuan in the first half of 2021, an increase of 15.79% over the same period last year, and a net profit of 85 million yuan, an increase of 24.55% over the same period last year.
Comments:
Steady growth in performance and stable profitability. In the first half of 2021, the company achieved revenue of 764 million yuan, an increase of 15.79% over the same period last year, and a net profit of 85 million yuan, an increase of 24.55% over the same period last year. Among them, the revenue of property management, value-added services, case services and apartment leasing business respectively realized RMB 0.89 billion, with a change of 14.05%, 79.57%, 33.08%, 11.89%, respectively, for the property management, value-added services, case services, and apartment rental business, with a revenue of RMB 0.89 million, respectively, with a change of 14.05%. In terms of profitability, the company's profitability maintained a reasonable level in the industry, with gross profit margin and net profit margin rising slightly by 2.11 and 0.78 percentage points to 23.69% and 11.08% respectively in the first half of 2021.
The expansion is accelerated, and the scale of management continues to expand. The company's expansion accelerated in 2021, with a newly signed area of about 3.8943 million square meters in the first half of the year, an increase of 32.37% over the same period last year, reaching an all-time high. The continued expansion of management scale laid the foundation for steady performance growth. By the end of June 2021, the company had signed a total of 624 projects, with a total signed area of 72.1564 million square meters, an increase of 14.35% over the same period last year.
Among them, there are 280residential projects with a contracted area of 49.3 million square meters and 344 non-residential projects with a contracted area of 22.8564 million square meters.
Breakthroughs have been made in new markets, new business type and new customers. 1) New markets: new markets in Luoyang, Henan, Huainan, Anhui, and Yangzhou, Jiangsu, whose territory continues to expand. And the company has achieved a substantial increase in revenue in Shanghai, Hubei and other covered provinces and regions, consolidating the national layout. 2) new business type: cut into the subdivided racing track of the hospital and develop in an all-round way. In the first half of the year, the company has successively signed contracts for projects such as Luoyang Kyoto Cancer Hospital and Hangzhou Kangjing Hospital; at the same time, new projects have been signed in park, commercial writing, cultural travel, urban services, public construction and other covered formats, and diversified formats have been developed in an all-round way. 3) New customers: expand by means of increasing capital and shares, setting up joint ventures and so on. The company increased capital to invest in the national gold modern life service participated in the mixed ownership reform of state-owned enterprises and established a new strategic customer relationship; before that, seven joint ventures established by the company have undertaken a number of property projects, and the output results of the platform have gradually emerged.
Investment advice: the company's multi-format comprehensive layout casts steady growth, and the results of regional expansion are gradually realized. We maintain the company's EPS of 1.23 yuan and 1.50 yuan in 2021 and 2022, respectively. According to the closing price on August 23, 2021, the corresponding PE is 11.7 times and 9.6 times, respectively, and the "prudent overweight" rating is maintained.
Risk hint: the labor cost is rising too fast, and the project expansion is not as expected.