Overview of events
Nandu property released three quarterly reports in 2020, the company achieved revenue of 1.02 billion yuan, year-on-year + 12.8%, to achieve a net profit of 110 million yuan, + 21.3%.
Rapid growth in performance and excellent cost control
2020Q1-3, the company achieved revenue of 1.02 billion yuan, year-on-year + 12.8%, realized home net profit of 110 million yuan, year-on-year + 21.3%, steady growth.
During the reporting period, the company's gross profit margin and net profit margin were 23.48% and 10.92% respectively, compared with the same period last year-0.46pct and + 0.73pct, respectively. Under the impact of the epidemic, the company's profitability remained stable. In addition, the company's sales expense rate, management expense rate and financial expense rate were 1.52%, 7.94% and-0.11% respectively, compared with-0.30pctmae 1.50pct and-0.03pct respectively in the same period last year, the overall expense rate decreased by 1.83pct, and the cost control was excellent.
The business expansion is progressing smoothly and the management scale is on a higher level.
2020Q1-3, the company signed 65 new property service projects, with a newly signed area of about 7.526 million square meters, an increase of 28.0% over the same period last year; 10 newly signed company case service contracts; and 1 newly signed consulting contract. By the end of the third quarter, the company had signed a total of 545 projects, with a total contract area of 66.537 million square meters, an increase of 10.4 percent over the same period last year. The newly signed area of the company has increased steadily, the business expansion has progressed smoothly, and the management scale has been further expanded.
Actively invest abroad and strengthen the brand development strategy
During the reporting period, the company jointly invested 4 million yuan in Canal Chenjing property Management Company with Canal Group and Hangzhou Tourism Group, and Guoxin Nandu Commercial Management Co., Ltd. with Guoxin City Transportation Co., Ltd., with an investment amount of 2.45 million yuan. The company's outward expansion is a way to consolidate the foundation of all-industry property services and to distribute the subdivision of literature and travel, which is conducive to expanding the scale of the company's regional layout business and improving the efficiency and quality of the company's services. further strengthen the company's "urban space operation + intelligent scene service" property service brand development strategy.
Investment suggestion
Nandu property performance is growing steadily, the market-oriented competitiveness is strong, the national layout continues to expand, and the financial situation is good. We keep our profit forecast unchanged. We expect the company's 20-22 EPS to be 1.06, 1.32, 1.60 and 13.4 times, respectively, corresponding to PE of 20.2, 16.2, and 13.4, maintaining the company's "buy" rating.
Risk hint
The concentration of the business area is too high-risk, the speed of business development is not as fast as expected, the profit of the new project is low, and the labor cost is rising too fast.