2021 results are in line with previous profit forecasts
The company announced its 2021 results: operating income of 1.456 billion yuan, an increase of 1.6%, and net profit of 328 million yuan, an increase of 68.5%, close to the median of previous performance forecasts, corresponding to a profit of 0.26 yuan per share.
The deduction of non-net profit in 2021 was 210 million yuan, an increase of 36.1%. The non-recurrent profit and loss mainly came from government subsidies and investment income. From a quarterly point of view, Q1/Q2/Q3/Q4 revenue is + 12.3% compared with the same period last year, respectively, 29.4% and 43.5% / + 10.7% respectively, and the net profit of home ownership is respectively year-on-year.
+ 46.9%, 23.5%, 276.0%, 201.4%, and profits continued to grow rapidly in the fourth quarter.
Trend of development
1. Revenue in 2021 increased slightly by 1.6% compared with the same period last year, and property sales revenue declined at a high base. From the point of view of business, 1) property leasing and management: property rental maintained a stable situation, with income of 920 million yuan during the year, with an increase of 9.0%. 2) sales of shops and supporting properties: realized income of 330 million yuan, down 27.8%, mainly due to the completion of the fashion town project in 2020 brought higher property sales base; 3) Commodity sales: the company's industrial supply chain trade business grew rapidly, realizing an income of 50 million yuan. 4) Hotel services: under the control of the epidemic, the operation picked up, with an income of 20 million yuan, with an increase of 34.1%. 5) Health and medical services: the income was 20 million yuan, an increase of 27.3%, and the development of new business areas advanced steadily.
2. the cost control has achieved results, and the investment income has increased the profit. In 2021, the company's gross profit margin also increased to 43.9%. We expect it to be mainly due to the optimization of construction costs, staff wages and other costs in the property sales section.
On the expense side, the sales expense rate has also been reduced to 5.9%, mainly due to the company's innovative marketing promotion forms to reduce related costs; the management and R & D expense rate has increased by 0.8ppt to 8.1%; mainly due to the expiration of epidemic-related tax relief policies, the increase in labor costs, and subsidiaries promoting the digital construction of the professional market, the related R & D investment has increased; the financial expense rate has also been reduced by 0.7ppt to-1.2%. In addition, the company promoted the overall management of funds and carried out diversified investments, and the investment income increased by 417.8% to 110 million yuan this year. Under the combined influence, the net interest rate increased by 8.9ppt to 22.5%, and the non-net interest rate increased by 3.7ppt to 14.4%.
3. Follow up to pay attention to the company's business transformation, business diversification and the progress of foreign investment. 1) Business transformation:
The company plans to promote the construction of Digital 2.0, integrate the modules of market service, investment promotion and industrial promotion into an integrated management platform, and optimize the live broadcast ecology of the base; 2) Business diversification: rehabilitation hospitals under the company's health industry study the establishment of a joint rehabilitation center to improve profits through the combination of "health care"; Yihejiayuan explores personalized special care areas and strives to become a three-star pension institution in the province. 3) overseas investment: the company plans to speed up investment in growth industries. Follow up to pay attention to business transformation and the progress of foreign investment.
Profit forecast and valuation
Taking into account the recurrence of the epidemic, increased competition in the industry and the uncertainty of business transformation, the 2022 earnings per share forecast is reduced by 3% to 0.21 yuan, and the 2023 earnings per share forecast is introduced to 0.22 yuan. The current share price corresponds to 22 times / 21 times the price of 2022 prime in 23 years. Maintain a neutral rating and lower the target price by 3% to 4.88 yuan based on earnings forecast adjustments, corresponding to 23 times / 22 times Pmax E in 2022max, with 5% upside space.
Risk
The epidemic situation is repeated, the competition in the industry continues to intensify, the online transaction is diverted, and the progress of the big health business is not as expected.