Q2 has a sound operation, and its net profit has declined only slightly from a high base in the same period last year. The company's 2021H1 realized revenue of 84 billion yuan, + 27.2% year-on-year; net profit of 1.5 billion yuan, + 200.8% year-on-year; of which 21Q2 realized revenue of 41.8 billion yuan, + 3.3% of the same period last year, and net profit of 860 million yuan, 4.7% of the same period last year.
From the perspective of the main business structure, under the shortage of core supply in the first half of the year, the company strengthened the gross profit control and inventory management of new cars, the proportion of vehicle sales revenue and gross profit increased significantly, and the stickiness of after-sales service was further improved. in addition, affected by the reform of car insurance fees and the tightening of the financial environment, commission agents and car rental business income and gross profit margin levels declined compared with the same period last year. The revenue of 2021H1 vehicle sales, maintenance services, commission agency and car rental business is + 31%, 17%,-20% and-2% respectively compared with the same period last year, accounting for 87.3%, 8.8%, 2.6% and 1.1% of revenue respectively, and 38.1%, 34.1%, 20.7% and 5.7% of gross profit respectively, of which the proportion of vehicle sales revenue and gross profit has climbed to the highest level since 2018.
The company continues to adjust and optimize the distribution network, luxury and ultra-luxury brand 4S stores continue to improve, inventory turnover efficiency. At the same time, the construction of digital operation platform is completed, and the service capability is improved by creating customer pool, product pool and service pool. At the end of the first half of the year, the company's 4S stores shrank slightly to 749, and the less efficient stores were adjusted and optimized by applying for renovation or new construction. At present, luxury and ultra-luxury 4S stores account for more than 30%. We judge that the company focuses on the steady adjustment of the internal brand structure, which is expected to increase the profitability of individual stores, and the digital platform can focus the products on the unified management and fine management at the company level, which is conducive to further improving the efficiency of stores.
The company optimized the financing structure, asset-liability ratio and financial expenses decreased significantly. The company also completed the issuance of 3.37 billion yuan of convertible bonds in August 2020, which will help to reduce financial expenses. The financial expense rate of 21Q2 is 1.52%, which is the same as-0.34pct and-0.15pct, respectively. The asset-liability ratio fell further to 64.5%.
Profit forecast and investment advice. The company is the absolute leader in China's automobile circulation industry, with a significant scale of base plate customers. It has achieved initial results in continuously optimizing operational efficiency by optimizing distribution network, strengthening inventory turnover, improving after-sales service, and launching commission innovation business. We estimate that the EPS of 2021, 2022, and 2023 will be 0.36, 0.46 and 0.54, respectively. With reference to the valuation level of the same industry, taking into account the leading position and A-share market premium, we will give the 2021 PEG 0.24-0.28 level, corresponding to 10-12 times PE, with a reasonable value range of 3.60-4.32 yuan, maintaining a "better than the market" rating.
Risk tips. The automobile industry fluctuates periodically; the business growth rate of the automobile aftermarket is not as expected; the acquired 4S store can not achieve the expected integration effect.