Event: the company issues 21 annual report and 22-year quarterly report. In 2021, the company's operating income was 1.515 billion yuan, a decrease of 24.11%, and the net profit was 54 million yuan, an increase of 1.79% over the same period last year. Of this total, 21Q4 realized revenue of 808 million yuan respectively, with a decrease of 13.19%, while the net profit returned to its mother was 85 million yuan, an increase of 105.96%.
Revenue side: ① quarter-by-quarter, Q1/Q2/Q3/Q4 Company realized revenue of 182 million yuan / 253 million yuan / 272 million yuan / 808 million yuan in 2021, Q3/Q4 changed by 0.78% and 13.19% year-on-year; net profit returned to the mother-54 million yuan / 21 million yuan / 3 million yuan / 0.85 million yuan, Q3/Q4 year-on-year change-56.59% 105.96%. ② sub-industry point of view, the company's revenue decline is mainly due to the decline in real estate income carry-over amount, engineering and sports business remain stable: the real estate industry achieved operating income of 233 million yuan, the same decrease of-69.19%, accounting for 15.70% of the total revenue, the company's real estate business project settlement area of 16191.88 square meters, a decrease of 79.35% compared with the same period last year. The operating income of engineering design and construction was 38 million yuan, an increase of 7.23%, accounting for 2.54% of the total revenue, while the operating income of the sports industry was 1.198 billion yuan, an increase of 1.78%, accounting for 80.72% of the total revenue. In the sports industry, the revenue from the operation and management of stadiums and stadiums was 144 million yuan, an increase of 55.77%, mainly due to the addition of venue consulting projects and Xuancheng venues in 2021, while the revenue of sports brokerage business was 132 million yuan, an increase of 63.09%. Its substantial growth is mainly due to the smooth holding of the 2021 Tokyo Olympic Games. Revenue from lottery-related business totaled 697 million yuan, down 7.04%, mainly due to the decrease in revenue from lottery system development and maintenance compared with the same period last year due to the adjustment of the business sector.
Cost side: 1) the company's 22Q1 gross profit margin was 17.95%, which increased 5.86pctMagne21 gross profit margin to 30.20% compared with the same period last year, and decreased 6.32pct compared with the same period last year. The 21-year gross profit margin of the company's real estate / engineering design and construction / sports / other business was 21.88%, 20.16%, 31.23%, 12.29%, respectively, with year-on-year changes of-2.04pct/-5.12pct/-12.82pct/-48.11pct. The decline in the company's 21 gross profit margin is mainly due to the obvious decline in lottery revenue, which accounts for a large proportion of the business sector. 2) the company's 21-year expense rate is 22.44%, which is lower than the same period last year (3.21pct). The expense rate of 22Q1 company during the period was 41.35%, which was reduced by 12.09pct compared with the same period last year, and the company's expense control effect appeared. The sales expense rate of ① 21 was 4.74%, a decrease of 3.41pct compared with the same period last year, mainly due to the business adjustment of the current period. The management expense rate of ② 21 was 16.36%, an increase of 4.02pct over the same period last year, mainly due to the decline in business income but little change in management expenses. The financial expense rate of ③ 21 was-1.98%, which decreased by 0.81pct compared with the same period last year, and the financial expense rate was basically stable.
Profit side: after 21 years, the third quarter turned from loss to profit, and Q4 outstanding growth became positive. In 2021, the net profit of homing was 55 million yuan, an increase of 1.79% over the same period last year, and the net profit after deducting 42 million yuan was-60.23% over the same period last year.
From a quarterly point of view, the company's 2021Q1/Q2/Q3/Q4 homing net profit-54 million yuan / 21 million yuan / 3 million yuan / 85 million yuan, Q3/Q4 year-on-year change-56.59% 105.96%. The company's 21-year Q1 homing net profit is negative business sector adjustment led to a relatively large reduction in lottery and real estate business income, after Q1, the company gradually returned to the normal profit state.
Investment suggestion: the company has rich sports resources and complete sports business ecology, we continue to be optimistic about the company's performance growth after actively exploring the cause of physical education and training. In the past two years, relevant sports events have been gradually launched, taking into account the impact of the epidemic on offline sports activities, we adjusted the net profit from 2022 to 2023 to 1.130 billion yuan (the previous value is 121.8 million yuan). Maintain a "buy" rating.
Risk tips: epidemic impact risk, policy risk, event operation risk, new project operation risk