Main points of investment
The company's net profit increased steadily: 2022H1, the company's operating income was 830 million yuan, up 40.6% over the same period last year; the net profit from the company was 190 million yuan, up 31.2% from the same period last year; the net interest rate was 22.9%, down 1.6% from the same period last year.
Comprehensive gross profit margin decreased: 2022H1, the company's comprehensive gross profit was 262 million yuan, an increase of 34.3% over the same period last year; the company's comprehensive gross profit margin was 31.5%, down 1.5pps from the same period last year, mainly due to the decline in sales of parking spaces and storerooms in 5S value-added services.
5S value-added business is expected to boost the company's performance growth: 2022H1 5S value-added service revenue of 61.29 million yuan, affected by factors such as repeated local epidemics, down 6.6% from the same period last year. As of June 30, 2022, 5S value-added services received 230 million yuan in advance, which is expected to become the engine of performance growth in the second half of the year.
Regional deep ploughing, qualitative expansion: as of 2022H1, the company's contract area is 5736 million square meters, an increase of 41.3% over the same period last year; the managed area is 35.44 million square meters, an increase of 42.4% over the same period last year, and the business scale is growing steadily; comprehensive property fees reach 4.28 yuan / month / square meters, maintaining a leading position in the industry. The company focuses on the Yangtze River Delta region, the top five cities are all located in Zhejiang Province, and the area in Hangzhou is 22.95 million square meters, accounting for 64.8% of the total project. 2022H1 company newly signed Hangzhou Wulin Bund stock project and Hai Chaowang Moon City project to deepen the scale advantage. At the same time, the company newly signed Yuhang No. 1 Middle School, Hangzhou very weak Magnetic Field Research Institute, Shangcheng District National Fitness Center and other non-residential projects, the format structure is more abundant. Based on the improvement of service capacity, the company maintains high-quality market expansion. The contracted area of the third-party extension of 2022H1 is 3.8 million square meters, accounting for 49.6% of the total new contract floor area.
There is plenty of cash on hand, and the rebate remains stable: as of 2022H1, the company's cash and cash equivalents are 1.16 billion yuan, and the cash flow is abundant; the turnover days of accounts receivable is 71 days; from the perspective of the structure of receivables, by the middle of 2022, about 98.5% of the accounts receivable age is within one year, the payback is stable, and the overall profit quality is high.
Our view: the company relies on the rich resources of Binjiang Group, ploughs the Yangtze River Delta region, is expected to occupy a leading position in the regional market, and the company size is expected to maintain high-quality growth; in addition, the company has large room for the growth of 5S value-added services. the company will continue to benefit from the steady improvement of related business, it is recommended to pay attention.
Risk hint: the company's external extension is not as expected; the collection rate is not as expected; the development of value-added business is not as expected.
