Revenue remains stable and profit level drops slightly
In the first three quarters of 2021, the company achieved operating income of 8.9 billion yuan, an increase of 33% over the same period last year, and its net profit was 480 million yuan, an increase of 95% over the same period last year. In the third quarter, the company achieved operating income of 2.8 billion yuan, down 0.06% from the same period last year, and its net profit was 97 million yuan, down 52% from the same period last year.
The decline in the company's net profit in the third quarter was mainly due to a decline in gross profit margin. We believe that since the third quarter, the continuous strengthening of real estate financial supervision and the continuous tightening of second-hand housing regulation and control policies in hot cities have led to the cooling of new and second-hand housing sales, which are the inducing factors for the decline of the company's profitability.
Business portfolio optimization to cope with market fluctuations
Many of the company's business lines complement each other and have a good linkage to effectively counter the operational pressure brought about by market fluctuations. The company takes second-hand housing brokerage business as ballast stone to support the achievement of business objectives with quality; with new housing business as a strategic opportunity window, it strictly controls risks while achieving business growth, and continues to promote city companies to optimize Panyuan; with housing asset management as a moat, in response to national policy guidelines, based on the housing needs of the majority of new citizens and urban youth, to provide high-quality residential service products that match the ability to pay.
Offline stores continue to expand, and the ability to get customers online is enhanced.
The company actively promotes the scale expansion strategy. So far, the total number of offline self-owned and franchised stores has reached 4820, an increase of 30 per cent from the beginning of the year. In addition, the company continues to increase the construction of its official website and APP, and the ability to get customers continues to enhance. In the first three quarters of 2021, the average number of monthly active users on the company's website was nearly 17.5 million, an increase of 76 per cent over the same period in 2020.
Stable performance, business portfolio optimization, maintain the "buy" rating company's current performance is stable, business portfolio optimization. It is estimated that the company's return net profit in 2021 and 2022 is 5.50 and 640 million yuan respectively, corresponding to EPS 0.23,0.27 yuan, corresponding to the latest stock price PE is 12.8,11.0 times, maintaining the "buy" rating.
Risk.
There are many uncertain factors in the policy environment, and the regulatory policies such as the checking price of second-hand housing and the continuous structural adjustment of the new housing sales market may affect the company's access to second-hand housing and new market commission income.