A-share scarce property management target, horizontal project extension, vertical format extension, all good enterprises have good growth.
Nandu property as the leading independent third-party property company in China, the service territory has been distributed all over the country. In addition to residential services, the company extends vertically to office buildings, commercial complexes, exhibition venues, government office buildings, urban roads, river docks and other forms of business. The company has obvious brand advantages and rich external extension ways. We maintain the previous profit forecast unchanged, estimated 2020-2022 return net profit 1.45,1.85, 228 million yuan, corresponding to EPS 1.08,1.38,1.70 yuan, the current stock price corresponding to PE is 20,16,13 times. Maintain a "buy" rating.
Considerable profitability and steady growth in performance
Nandu property released the first three quarters of 2020 report: in the first three quarters of 2020, the company achieved operating income of 1.017 billion yuan, an increase of 12.8% over the same period last year; net profit of 105 million yuan, an increase of 21.3% over the same period last year; and basic earnings per share of 0.78 yuan. In a single quarter, the company's revenue and return net profit grew by 12.7% and 21.3% respectively. The steady growth of the company's performance is mainly due to: 1) considerable profitability, achieving a comprehensive gross profit margin of 23.5% in the first three quarters, down 0.4 percentage points from the same period last year; 2) remarkable cost control effect, with the rate during the sales period 9.43%, down 1.9 percentage points from the same period last year; finally, the company's net profit rate reached 10.9%, an increase of 0.7 percentage points over the same period last year.
In the first three quarters of 2020, the company has signed a total of 545 projects, with a total signed area of 66.537 million square meters, an increase of 10.4% over the same period last year. From January to September, the company signed 65 property service projects, and the newly signed area was about 7.5292 million square meters, an increase of 28.1% over the same period last year. The number of newly signed service contracts for the company's case site is 10 and that of consulting contracts is 1. Since the beginning of the year, the company has actively expanded the market segment track and continued to help urban public space services.
Intelligent change to ensure quality and improve efficiency, continue to enhance customer stickiness
With the achievements of the company's wisdom park construction during the epidemic outbreak, its happy living service platform quickly launched the "waiting basket" plan to enhance the owners' stickiness; officially launched "Yuejia" Mini Program in Alipay APP, upgrading the online service model, continuing the original APP property payment, home entry and public maintenance functions, and promoting the speed of digital transformation of property management.
Risk tips: macroeconomic recession, the decline of residents' ability to pay; cost rigidity, gross profit continues to compress.