Revenue maintained positive growth: 2022H1, the company achieved operating income of 15 billion yuan, an increase of 5% over the same period last year. Among them, the income from selling property was 12.2 billion yuan, up 12% from the same period last year, accounting for 81%; the income from holding property was 2 billion yuan, down 19% from the same period last year, accounting for 13%. As of the end of 2022H1, the company's contract liabilities are 37.3 billion yuan, laying the foundation for future revenue. The company expects that the rent remission arrangement in 2022 will affect the income of RMB 970-1.35 billion.
The decline in the proportion of net profit is a drag on the performance: 2022H1 achieved a net profit of 1.06 billion yuan, down 9% from the same period last year, but its net profit was only 86 million yuan, down 86% from the same period last year. Mainly because the share of project rights and interests in the current settlement project is relatively low, the proportion of net profit is only 8%, which is 45% lower than that of the same period last year and 6% lower than that of 2021. The proportion of the company's net assets is maintained at a low level of 36%, so it is difficult to eliminate the hidden worry about the increase in the proportion of subsequent carry-over profits. Therefore, although the gross profit margin and net profit margin of 2022H1 are 34% and 7% respectively, which is 6.5% and 5.3% higher than that of 2021, the net profit rate of return to the mother is 0.6%, which is only 0.3% higher than that of 2021.
Sales outperformed the industry, and investment intensity declined: 2022H1 sales were 28.5 billion yuan, down 21% from the same period last year, lower than the overall level of the industry; sales area was 1.06 million yuan, down 35% from the same period last year.
2022H1 added 410000 square meters of land storage capacity, covering 39% of the sales area, 7.7 billion yuan of land, and 27% of the land intensity calculated in terms of full-caliber sales. By the end of 2022H1, the sales value of the company's land reserves is about 216.5 billion yuan, which is enough to meet the development needs of the next 2-3 years.
Steady development of commercial real estate: 2022H1 acquired two new light-asset commercial projects and opened Dayue City in Wuhan. By the end of 2022H1, the company has opened 27 shopping malls (including light assets and non-standardized products), with a total commercial floor area of 3 million square meters, including 16 Dayue City, with a total commercial floor area of 2.39 million square meters, with an average occupancy rate of 90.5%. In addition, the company is under construction preparation (including light assets) projects, with a total commercial construction area of about 1.84 million square meters.
Financial stability and lower financing costs: by the end of 2022H1, the company had maintained a yellow file, with a net debt ratio of 93% and a cash-to-short debt ratio of 1.4%. Excluding the pre-received asset-liability ratio of 71%, the company was only one step away from entering the green file. 2022H1's average new borrowing cost was 4.84%; by the end of 2021, the company's average financing cost was 4.87%, down 0.04% from the end of last year.
Investment advice: the company's income has maintained positive growth, and the proportion of net profit returned to the home has declined. It is estimated that the return net profit of the company in 2022 / 2023 is 95pm 1.15 billion yuan respectively, the EPS corresponding to the latest equity is 0.22pm 0.27 yuan, and the PE corresponding to the latest share price is 16.1 pm 13.3 times, maintaining the "buy" rating.
Risk tips: the company's development property sales and settlement are not as expected, investment property expansion, income is not as expected, the provision for asset impairment is higher than expected, or the improvement of the market environment is not as expected.
