Events. The company publishes its semi-annual report for 2022. During the reporting period, the company achieved revenue of 521 million yuan, up 27.04% from the same period last year; the net profit belonging to shareholders of listed companies was 63 million yuan, down 5.09% from the same period last year.
The company intends to distribute a cash dividend of 2.20 yuan (including tax) to all shareholders for every 10 shares.
The main reason for the increase in revenue in the first half of 2022: the completion of multi-revenue mergers and acquisitions and the development of new projects in 2021 led to an increase in revenue due to the expansion of the scale of management. The main reasons for the decline of the company's return net profit in the first half of 2022 are as follows: affected by the epidemic, the project under construction is delayed, and the project investment progress is slower than expected.
According to the 2022 annual report, the company's business model mainly includes leasing operation, shareholding operation and entrusted operation. By the end of the reporting period, the company leased and operated 44 projects, and the property area available for rental operation was about 720000 square meters. The company is entrusted to operate 25 projects, and the property area available for rental operation is about 420000 square meters. The company participates in the operation of three projects, and the property area available for rental operation is about 120000 square meters.
By the end of this report, the company was in charge of 72 projects with a management area of more than 1.2 million square meters, and the overall number and area of projects were in the leading position in the industry. In terms of region, there are 62 projects in Shanghai, 7 projects in Beijing, 2 projects in Hangzhou and 1 project in Nanjing.
1) from January to June 2022, the company's rental income from operating projects totaled 393 million yuan, accounting for about 75.56%, an increase of about 31.08% over the same period last year, mainly due to the completion of a number of mergers and acquisitions and the development of new projects in 2021. 2) property services and other income totaled 127 million yuan, an increase of about 15.99% over the same period last year.
During the reporting period, the company's profit source was mainly composed of leasing and property services business. Among them: the gross profit margin of leasing business is 40.91%, and that of property services and other services is 33.22%.
Investment advice: to create China's leading commercial property service provider in the field of urban renewal, with a "better than the market" rating.
The company is a service-oriented company with light asset operation, mainly engaged in positioning design, transformation, investment promotion, operation and service of urban old property and inefficient stock commercial property. By the end of the first half of 2022, the company was in charge of 72 projects with a management area of more than 1.2 million square meters. It is estimated that the company's EPS from 2022 to 2023 will be about 0.30,0.36 yuan. With reference to the comparable company valuation, the company will be given a dynamic price-to-earnings ratio of 16-20 times in 2022, and the corresponding reasonable value range is 4.80-6.0yuan, maintaining the "better than the big market" investment rating.
Risk hint: the risk of decreasing rental rate and rent difference; the risk of over-concentration in the region.