Event
Nandu property (603506) released its quarterly report for 2022, the main contents of which are as follows:
In the first three quarters of 2022, the company achieved operating income of 1.378 billion yuan, an increase of 17.72% over the same period last year, and a net profit of 143 million yuan, an increase of 5.64% over the same period last year. The net profit margin of the company was 10.36%, down 1.18% from the same period last year, and EPS 0.76 yuan. Among them, the operating income in the third quarter was 481 million yuan, an increase of 18.39 percent over the same period last year, the net profit of the parent was 52 million yuan, an increase of 3.80 percent over the same period last year, and the net profit margin of the parent was 10.87 percent, down 1.53 percent from the same period last year, EPS 0.28 yuan.
Core viewpoints
The small increase in performance is mainly due to the increase in operating income, the increase in income from changes in fair value, the decline in the rate of management expenses, and so on. The company's performance increased slightly in the first three quarters, and its net profit rose 5.64% compared with the same period last year. The positive factors for the company's performance improvement during the reporting period mainly include: 1) the company's business expansion, including external acquisitions of property management companies, newly signed projects, etc., resulting in an increase in operating income by 17.72% compared with the same period last year. 2) the fair value change income from the company's transactional financial assets increased to 8.2372 million yuan from 752100 yuan in the same period last year; 3) the rate of management expenses decreased to 7.30% from 7.78% in the same period last year. The negative factors affecting the company's performance include the decline of gross profit margin, the increase of financial expense rate and so on.
Property management business expansion is smooth, the newly signed area is growing rapidly. During the reporting period, the company's property management business expanded smoothly. On the one hand, 86 new projects were signed in the first three quarters, with a newly signed area of 10.728 million square meters, an increase of 70.74% over the same period last year; on the other hand, the acquisition of Pratt & Whitney property and Zhongda property Company was completed. Pratt & Whitney property companies are mainly non-residential, including corporate office buildings, commerce, parks and hospitals, while CUHK property companies are mainly residential properties. By the end of the reporting period, the company has signed 699 projects with a total signed area of 83.8985 million square meters.
In the optimization of tube area structure, the proportion of non-living area is increased. In recent years, the company has increased the proportion of non-residential management area, and the proportion of new signings is higher than that of stock. As the relevant data are not disclosed in the three quarterly reports, we use the data for the first half of 2022 as the basis for our analysis. Of the newly signed areas in the first half of 2022, residential projects accounted for 40%, commercial projects accounted for 21%, and urban service projects accounted for 39%. Of the total contracted area of stock at the end of the first half of 2022, residential projects accounted for 67%, commercial projects accounted for 23%, and urban service projects accounted for 10%. The above data show that the company continues to promote full-format layout and actively enhance the core competitiveness of various sub-formats in the non-residential field.
Investment suggestion
The company's property management business expansion is smooth, less affected by the epidemic and the property market decline, future performance is supported, maintain the "cautious recommendation" rating. It is estimated that the operating income from 2022 to 2024 is 1.851 billion yuan, 2.197 billion yuan and 2.662 billion yuan, the net profit is 193 million yuan, 229 million yuan and 274 million yuan, the EPS is 1.03,1.22,1.46 yuan, and the corresponding PE is 11.65,9.82,8.22 times.
Risk hint
There is uncertainty in the progress of market expansion, uncertainty in the impact of labor costs on profitability, and uncertainty in the impact of the epidemic on property seizure rates.