Main points of investment
Core net profit increased by 48.8% over the same period last year, and the performance was in line with expectations: the company's operating income in the first half of 2020 was 741 million yuan (the same below), an increase of 32.7% over the same period last year. The company's core net profit was 136 million yuan, an increase of 48.8% over the same period last year, and the core net profit margin was 18.4%, in line with market expectations.
The gross profit margin decreased by 0.5%: the company's comprehensive gross profit margin in the first half of 2020 was 33.8%, which was 0.5% lower than that of the same period last year, mainly due to the increase in the proportion of contract-drying fees in the management area, and the relatively low gross profit margin of newly acquired projects. as a result, the gross profit margin of property management services decreased by 3 percentage points.
"Troika" multi-dimensional extension expansion, layout of urban integrated service areas: as of June 30, 2020, the company's managed area was 4877 million square meters, an increase of 5.5 percent over the end of 2019, and the contract area was 5923 million square meters, an increase of 10.1 percent over the end of 2019. Through market expansion, mergers and acquisitions and cooperation "troika", the company actively develops the independent third-party property development market and comprehensively develops diversified formats. The company's layout of the city to serve the blue ocean market is expected to drive the company's continued growth.
The business profit space of intelligent solutions is highlighted: in the first half of 2020, the revenue of intelligent solution services was 73 million yuan, an increase of 41.6% over the same period last year, and the gross profit margin was 32.9%, an increase of 5.4% over the same period last year, mainly due to the increase in the number of high-margin contracts. At present, Jiake Intelligence has been included in the qualified supplier warehouse by 211 real estate enterprises, and has signed a 2-3-year strategic cooperation agreement with a number of TOP 20 real estate enterprises, with strong third-party project acquisition capacity.
Our point of view: Kaisa beautiful through market expansion, mergers and acquisitions and cooperation "troika" multi-dimensional expansion, actively expand the third-party market, layout of urban comprehensive services this blue ocean market, multi-format comprehensive development, drive stable scale growth. The company's independent brand "Jiake Intelligence" is recognized by the market, the intelligent solution business is developing rapidly, and the scale and profit margin are expected to continue to improve. The company has abundant cash flow and holds more than 1.19 billion yuan in net cash, laying a good foundation for future mergers and acquisitions.
After the recent market adjustment, the company's valuation is currently in a more attractive position, investors are advised to actively pay attention.
Risk tips: business expansion is not as expected; property management satisfaction is reduced; property management fee collection rate is reduced; property management fee increase is blocked.