Event
Country Garden Services Holdings announced his 2021 results, with revenue of 15.6 billion yuan in 2021, an increase of 84.9 percent over the same period last year, and a net profit of 4.03 billion yuan, an increase of 50.2 percent over the same period last year.
Brief comment
Performance growth is in line with expectations. In 2021, the company achieved revenue of 15.6 billion yuan, an increase of 84.9% over the same period last year, and a net profit of 4.03 billion yuan, an increase of 50.2% over the same period last year. The return net interest rate reached 14.0%, down 3.2 percentage points from last year, mainly due to: 1. The gross profit margin of the company fell 3.3 percentage points to 30.7%, including 4.3 percentage points for property management services, 4.6 percentage points for community value-added services, 4.6 percentage points for non-owner value-added services, 4.6 percentage points to 30.3%, 60.5% and 40.9% respectively, mainly due to the impact of mergers and acquisitions. And the proportion of urban service business with low gross profit margin increased from 5.7% in 2020 to 15.7% in 2021. two。 The increase in the debt side of the company has led to the increase in the company's net interest income from 43.69 million yuan in 2020 to-97.9 million yuan.
The market expansion area has increased rapidly compared with the same period last year, and the urban energy level structure has been continuously optimized. By the end of 2021, the company has achieved a contract area of 1.44 billion square meters and a management area of 770 million square meters. From the perspective of the new contract area structure, the company's area from the parent company in 2021 is about 89 million square meters, the market expansion area is about 84 million square meters, and the acquisition area is 450 million square meters. Although the proportion of mergers and acquisitions area increased significantly during the year, in terms of absolute area, the company's market expansion area increased by 16.7% compared with the same period last year, and the endogenous growth capacity has been enhanced. From the perspective of in-tube area structure, the proportion of in-tube area in first-and second-tier cities has increased from 40% in 2020 to 47% in 2021, indicating that the company is also gradually optimizing its urban energy level structure on the basis of the third and fourth lines. The unit price of the company's third-party property increased from 2.31 yuan / square meter / month in 2020 to 2.37 yuan / square meter / month in 2021, resulting in a 4.7% increase in overall property management fees.
Community value-added services maintained high growth. In 2021, the company's community value-added service income reached 6.32 billion yuan, an increase of 92.2% over the same period last year. Among them, community media services and local life services (community retail) increased by 179.1% and 107.1% respectively, which are the two main driving tracks of value-added services in 2021; they account for 29.4% and 33.2% respectively, and are also the two largest sectors of community value-added services at present. The company's community media business relies on the cities acquired by the company, and currently covers more than 500000 self-media outlets in more than 260 cities across the country.
Maintain the buy rating and lower the target price to HK $55.95. Taking into account the impact of the decline in the company's gross profit margin, we slightly downgraded the company's EPS in 2022-2024 to 1.82max 2.71max 4.02 (the original EPS in 2022-2023 was 2.02max 3.12), giving it 25 times PE in 2022, corresponding to a target price of HK $55.95 per share, maintaining a "buy" rating.
Risk hint: the progress of post-investment integration is not as expected.