Events. The company publishes its semi-annual report for 2021. During the reporting period, the company realized main business income of 4233.8 million yuan, an increase of 170.6% over the same period last year, and a net profit of 578.2 million yuan, an increase of 135.6% over the same period last year.
In the first half of 2021, the company's revenue came from four businesses: (I) property management services; (ii) community value-added services; (iii) non-owner value-added services; and (iv) urban services. During the period, (I) property management service income reached 2321.9 million yuan, accounting for 54.8%, an increase of 183.3% over the same period last year; (ii) community value-added service income reached 1393.4 million yuan, accounting for 32.9%, an increase of 233.9%; (iii) non-owner value-added service income reached 384.3 million yuan, accounting for 9.1%, an increase of 17.3% over the same period last year And (iv) Urban service revenue of 134.2 million yuan, mainly due to the new track layout and the acquisition of Shenzhen Shenzhen Brothers during the period.
According to the company's semi-annual report of 2021, by the end of the first half of 2021, the managed construction area of the company's property management services reached 175.0 million square meters, an increase of 104.2 percent over the same period last year; the company's contract construction area was about 239.2 square meters, an increase of about 90.6 percent over the same period last year.
In the first half of 2021, Zhejiang University Xinyu won the bid for Anhui University Yuanyuan campus project; successfully obtained high-quality projects such as Beijing Chaoyang District Taxation Bureau and Zhejiang Liangzhu Laboratory of the State Administration of Taxation, and achieved a multi-dimensional breakthrough.
In 2021, the company successfully acquired Shenzhen Shenzhen Brother Environment Co., Ltd and Wuxi Jinshatian Technology Co., Ltd. The company has signed strategic framework cooperation agreements with nine city, county and district governments to jointly promote urban services, and took the lead in implementing the project landing in Suqian Sucheng District and Harbin Acheng District.
By the end of the first half of 2021, the company's non-residential property construction area reached 71.4 million square meters, accounting for 40.8%, an increase of 36.1 percentage points compared with the same period in 2020.
In the first half of 2021, the company added a new third-party bidding area of 27.1 million square meters, an increase of 15.3% compared with 23.5 million square meters in 2020.
Investment advice: high-growth quality target, "better than the market" rating. We estimate that the EPS of the company from 2021 to 2023 is 0.55,0.72 and 0.91 yuan respectively. In view of the high growth of the company, the company is given a dynamic price-to-earnings ratio of 28-35 times in 2021, with a reasonable value range of HK $18.53-23.16 (RMB 15.40-19.25, the midpoint of the Hong Kong dollar exchange rate is 0.83104 RMB / HK $). Be given a "better than the market" rating.
Risk hint. Property project expansion is not as expected; labor costs rise risk; value-added business expansion is not as expected.