Main points of investment
Development plate carry-over speed up + invigorate stock assets, profit growth is eye-catching. 2022H1 achieved an operating income of 10.604 billion yuan, a year-on-year increase of 93.75%, a net profit of 1.148 billion yuan, an increase of 90.15% over the same period last year, and a net interest rate of 10.83%. The main reasons for the sharp increase in 2022H1 profits of the company are as follows: 1) the settlement scale of the development sector has increased significantly compared with the same period last year. 2022H1's real estate development sector achieved revenue of 9.626 billion yuan, an increase of 119.41% over the same period last year. 2) the company transferred the equity and assets of the Ritz-Carlton Hotel in Beijing in March 2022, resulting in an investment income of 732 million yuan, accounting for 45.99% of the total profit, and an asset disposal income of 240 million yuan, accounting for 15.06% of the total profit. 3) the core assets of the core city increased the report profit. During the period, the fair value profit and loss of the Shanghai Jing'an Rongyue Center project was 141 million yuan, accounting for 8.85% of the total profit.
The gross profit margin of the company is still in the adjustment stage. The gross profit margin of the 2022H1 development plate is 15.19%, which is 1.44% lower than that at the end of 2021. The overall gross profit margin of 2022H1 company is 19.98% lower than that at the end of 2021, and it is lower than that at the end of 2021 by 1.46pct.
The average price of sales increased compared with the same period last year, and the industry ranking has been improved. The sales amount of 2022H1 Company was 11.67 billion yuan, down 45.8% from the same period last year, the sales area was 50.2 million square meters, down 55.3% from the same period last year, and the average sales price was 23247 yuan / flat, up 21.2% from the same period last year. Among them, sales in Beijing-Tianjin-Hebei region reached 6.5 billion yuan, accounting for 55.52 percent, up 31.77 percent over the same period last year; sales in Chengdu and Chongqing reached 2.1 billion yuan, accounting for 17.89 percent; and sales in the Yangtze River Delta reached 1.8 billion yuan, accounting for 15.3 percent. The sales amount in the Great Bay area reached 800 million yuan, accounting for 6.66%, and the sales in the middle reaches of the Yangtze River reached 500 million yuan, accounting for 4.53%. The company continues to cultivate high-level cities, and the projects are mainly concentrated in core cities such as Beijing, Shanghai, Tianjin, etc., helping the company to steadily improve its sales ranking, according to Kerry data 2022H1 full-caliber sales ranking rose 14 places from 83rd place in 2021 to 69th place.
The attitude of taking land during the downward period of the industry tends to be cautious. 2022H1 company only through equity acquisition to add one new project reserve, the project is located in Tianjin, belongs to the core of the company deep ploughing Beijing-Tianjin-Hebei region, the total planned construction area of 245,000 square meters, with equity consideration of 1.25 billion yuan to acquire 34% of the target project. The company still maintains a relatively sufficient land reserve, as of 2022H1, the company's total land storage area is about 2535 million square meters, the settlement total construction surface is about 1591 million square meters, and the corresponding total equity construction surface is 1267 million square meters, which is estimated to be able to support the company's 9-year sales demand according to 2021 sales area.
Core assets help pass through the cycle, and the rental rate increases steadily. 2022H1 achieved 940 million yuan in revenue from its asset management business. Of this total, the revenue from property leasing reached 809 million yuan, down 3% from the same period last year. The core assets are mainly composed of office buildings and businesses located in high-energy cities such as Beijing, Shanghai and Tianjin. During the period, the company's key projects completed customer contract signing and lease renewal, and the rental rate of core assets was 78%, which was basically the same as that at the end of 2021 under the influence of the epidemic. The rental rate of the company's core project, Beijing Financial Street Center, has returned to a high of 93%. The company's property assets are mainly hotels and stadiums, with 2022H1 revenue of 103 million yuan, down 47% from the same period last year.
Investment suggestion: we adjust the company's profit forecast and expect the company to return to its parent net profit of 1.694 billion yuan in 2022.
Considering that the tenant stability is slightly affected by the epidemic and macro-economy, we refer to the comparable company's PB valuation and make corresponding adjustments, giving the company a valuation of 0.7 times PB in 2022, corresponding to the target price of 9.09 yuan, and maintaining the "buy".
Rating.
Risk hint: the policy relaxation is not as strong and fast as expected, and the aggravation of the epidemic affects the company's holding property management.
