The company issued a semi-annual report for 2021: total operating income was 38.482 billion yuan, an increase of 29.6% over the same period last year; net profit was 1.748 billion yuan, a decrease of 14.72% over the same period last year; and basic earnings per share was 0.46 yuan.
Real estate business: sales amount, area to achieve double-digit growth a) sales and market to maintain the same frequency growth. In the first half of the year, the sales area and amount of commercial housing increased by 27.7% and 38.9% respectively over the same period last year By the end of the reporting period, the company's sales reached 108.98 billion yuan, an increase of 33.9% over the same period last year, and the sales area reached 7.901 million square meters, an increase of 29.7%. B) the regional management structure remains stable and multi-tier cities operate together. The sales area of first-and second-tier cities accounts for 32% of the total sales area, and the sales amount accounts for 36% of the total sales amount, focusing on the Yangtze River Delta region. The total area of completed resources is 47.4 million square meters, an increase of 7.5% over the same period last year. Among them, the area of first-and second-tier cities accounts for about 33%, and the area of third-and fourth-tier cities accounts for about 67%. C) periodic pressure on profits and an increase in the rate of expenses. The gross profit margin of the real estate business was 19.06%, down 0.34 pct from the same period last year. The short-term pressure on profit level is due to differences in settlement structure and reduced investment income from non-consolidated projects. At the same time, in response to regulation, the relevant rates have increased, of which the sales expense rate is 2.50%, the year-on-year increase of 0.14 pct; financial expense rate is 1.49%, and the year-on-year increase is 3 pct.
Construction business: speed up transformation and upgrading, enhance cycle crossing capacity as of the end of the reporting period, the operating income reached 11.35 billion yuan, an increase of 17.2% over the same period last year. Affected by the rise in the price of raw materials, the gross profit margin of the construction business was 8.28%, down 2.82 pct from the same period last year. The total contract value of the newly accepted (successful) project was 15.31 billion yuan, an increase of 3.3% over the same period last year. In the context of the "double cycle", the construction industry is facing upgrading iterations, and the company will continue to accelerate intelligent construction, transform to green construction, actively strive for development opportunities, and promote the sustainable development of the cause.
Debt indicators continue to be optimized, and the three red lines will turn green soon.
At the end of the reporting period, the company's interest-bearing liabilities were 76.76 billion yuan, 3.15 billion yuan less than at the end of 2020. At the same time, the company insists on not relying on the development model of interest-bearing liabilities, with short-term loans and non-current liabilities due within one year 20.9 billion yuan, down 2.02 pct from the end of 2020. Three red lines. "
Excluding the asset-liability ratio of accounts received in advance, the asset-liability ratio is 77.42%, the net debt ratio is 95.27%, and the cash short-debt ratio is about 1.03, which is in the "yellow file". The company will continue to optimize its balance sheet in the second half of the year.
Adhere to the mainstream housing orientation of the masses and develop business synergy advantages
A) adhere to the product positioning of popular mainstream housing and improve the regional layout. We will continue to improve the layout of densely populated core cities in the Yangtze River Delta, Pearl River Delta and the mainland, appropriately increase the proportion of resources in first-and second-tier cities, control the scale of single projects in small and medium-sized cities, and constantly strengthen the operating capacity of the company. The average period for the project to obtain sales is maintained at about 7 months, providing a guarantee for sustained growth in performance. B) the advantage of business synergy is highlighted. The company's business covers residential development, hotel management, project general contracting, construction and installation, etc., and cooperates to build a complete industrial pattern composed of rail transit, municipal roads and bridges, and other infrastructure construction, as well as commercial, hotel and industrial park operation. it has the ability to undertake a variety of urban comprehensive operation projects and has advantages that other single types of enterprises are difficult to have.
Investment suggestion
The company continues to deepen the long-term strategic concept, adhere to the "real estate + construction" dual-main business development strategy, to achieve an effective balance between scale growth and management quality. The soil storage resources are abundant and the focus is on the triangle area of the bureau chief. The company's leverage reduction effect is significant in the future the company's business synergy advantages are gradually released, multi-format coverage to undertake a variety of urban comprehensive operation projects, with a stronger ability to cross the real estate cycle. It is estimated that the company's EPS in 2021 and 2023 will be 1.89,2.03,2.19 yuan per share, and the corresponding share price PE will be 2.6,2.4,2.2 times respectively, maintaining a "buy" rating.
Risk hint
Sales fall short of expectations, regulatory policies tighten beyond expectations, financing costs rise, profit margins decline, equity ratio of new projects decreases, and so on.