The performance carried forward smoothly and the profit margin improved. The company's operating income in the first half of the year was 1.69 billion yuan, down 8.2% from the same period last year; the net profit returned to the home was 623 million yuan, down 4.1% from the same period last year, and the performance carry-over declined slightly but relatively stable. The main reasons why the decline of net profit from homing is less than revenue are as follows: 1. The gross profit margin of settlement is higher. The settlement gross profit margin of the real estate development industry, which accounts for about 89% of income, rose 0.59 percentage points to 67.1% over the same period last year, driving up the overall gross profit margin. 2. The comprehensive income tax rate decreased by 2.7 percentage points to 22.2% compared with the same period last year. In addition, the expense rate of the sales amount has been improved.
In the first half of the year, the real estate sales performance was beautiful, and the overall financial situation improved. In the first half of the year, the sales volume reached 1.224 billion yuan, an increase of 146.6% compared with the same period last year. 94% of the sales volume was contributed by Nanjing, the base camp, and the real estate development business achieved a relatively beautiful sales performance. In the first half of the year, the company did not add new land reserves, but the stock is available for sale and can be carried forward very rich. By the end of the first half of the year, the company has an area of about 2.74 million square meters to be opened and under construction, whether it is development, sales or carryover, which can meet the development needs for many years and provide cash flow support for the transformation of the company's medical and beauty business in the future. The overall financial situation has improved, belonging to the three red lines of yellow enterprises, the net debt and the asset-liability ratio after deducting advance receipts have improved, while the cash-to-debt ratio has decreased.
The high-quality achievements of the transformation of medical beauty are in the bag, and the medical beauty business is gradually taking shape. The three medical companies that the company acquired and merged were included in the medical and beauty industry fund established by the company and major shareholders when the company transformed the company in 2016. After nearly five years of cultivation, the achievements of the transformation of medical beauty have been presented and incorporated into the listed companies. The three medical beauty standards are all at the hospital level, and they are of relatively high quality. The net profit of the three companies' bets from 2021 to 2023 has a combined growth rate of 9.5% in three years, and the acquisition consideration corresponds to 15.66 times of the bet performance in 2021, which is at a reasonable level. This time, the company transferred the high-quality results of in vitro transformation into the reports of listed companies, on the one hand, it shows that the company's medical and beauty business experience has been accumulated to a certain extent, on the other hand, it also reflects the company's determination to transform medical beauty, make it bigger and better, and strengthen its medical beauty business.
Maintain earnings forecasts and buy ratings. We estimate that the EPS of the company from 2021 to 2023 is 0.40, 0.48, 0.59 respectively. The company's financial position is good, the real estate profitability is strong, to the medical and beauty business is determined to continue to maintain the buy rating.
Risk hints: real estate regulation exceeded expectations; mergers and acquisitions in the medical and beauty industry fell short of expectations.
