Revenue is higher than the same period last year, while profit growth is weak. In 2022, the company achieved an operating income of 1.6 billion yuan, an increase of 16% over the same period in 2021; a gross profit of 429 million yuan, a decrease of 3% over the same period in 2021; a net profit of 270 million yuan, an increase of 2% over the same period in 2021; and a net profit of 267 million yuan, an increase of 2% over the same period in 2021. The gross profit margin and net profit margin decreased by 5 and 2 percentage points respectively compared with the same period in 2021, with the gross profit margin reaching 27% and the net profit margin reaching 17%. In 2022 1H, the company's basic earnings per share was 0.23 yuan, an increase of 0.01 yuan over the same period in 2021. The board of directors declared an interim dividend of 0.136 yuan per share (equivalent to HK $0.156 per share), which was paid in cash.
Diversified business forms enrich the system, and the scale of construction continues to grow. By the end of 2022, the company had 522 contract property management services with a contract floor area of 121.5 million square meters and a management floor area of 79.4 million square meters, an increase of 47% and 37% respectively compared with the same period in 2021. During the period, the company continued to expand its scale through bidding, mergers and acquisitions, joint ventures, strategic cooperation and other channels, based on residential properties, continue to expand the multi-format service systems such as schools, hospitals, industrial parks, logistics parks, data centers, government facilities and urban space, and actively participate in urban comprehensive operation services and smart city construction.
Deep ploughing high-energy cities, the outward extension ability continues to be dominant. In 2022 1H, the proportion of third-party sources in the company's contracted floor space increased significantly to about 52%, and the proportion of new contracted floor area from third-party expansion accounted for about 70%. By the end of 2022, the company's projects have spread to 84 cities in 24 provinces, autonomous regions and municipalities directly under the Central Government in China. Geographical coverage has covered 5 major urban agglomerations in Beijing-Tianjin-Hebei region, Bohai Rim region, East China region, South China region, Central China and West China region. The company has significant advantages in the Beijing-Tianjin-Hebei region and the Bohai Rim region, while gradually increasing the proportion of East China, South China, Central China and West China. By the end of 2022, according to the construction area in charge, the proportion of Beijing-Tianjin-Hebei region was about 35%, that of the Bohai Rim region was about 23%, that of East China region was about 18%, that of South China region was about 11%, and that of Central and West China region was about 13%.
The business writes the operation performance is beautiful, the quality service realizes the differentiation. In 2022 1H, the company's revenue from business operation and property management services was 280 million yuan, an increase of 34.3% over the same period in 2021; gross profit was 100 million yuan, accounting for an increase of 6 percentage points to 24.3% compared with the same period in 2021. By the end of 2022, the contracted floor area and managed floor area of commercial property management services provided by the company were 7.4 million square meters and 4.5 million square meters respectively, an increase of about 7 percent and 20 percent respectively over the same period in 2021. First-and second-tier cities accounted for more than 99 percent of the managed construction area, and the average property management fee was 13.16 yuan / square meter / month.
Investment advice: "better than the market" rating. We predict that the company's EPS will be 0.46 yuan per share in 2022.
With reference to the comparable company's EPS valuation, we give the company 6-7 times PE valuation in 2022, corresponding to a market capitalization range of HK $37-HK $4.3 billion and a corresponding reasonable value range of HK $3.14-HK $3.67 per share. Risk Tips:
The real estate industry faces aggregate downside risks.