Event: Jinmao Service released 2022 external expansion inventory, further enriched the expansion format on January 19, 2023, Jinmao Service released 2022 external inventory, the company realized 16 types of business expansion, signed a total of 176individual projects, expanding the contract area of more than 15 million square meters, of which non-residential accounted for more than 60%, second-tier and above cities accounted for more than 72%. In December 2022, China Jinmao University membership system was newly launched, connecting its different formats and various consumption scenarios, making it more convenient for customers to spend.
Comments: expand the rich format, "Jin Maohui" through the consumption scene, urban service scale expansion 1) adhere to the high-quality development path, the service format is gradually enriched. As of June 30, 2022, the company has a management area of 4550 million square meters and a contract area of 6960 million square meters. The company adheres to the same high-end positioning and boutique route as the controlling shareholder, China Jinmao, and focuses on high-end property management in core cities. During the year, it expanded high-quality high-end housing projects such as the Pu Yue residence in Shanghai, the West District of Daming City in Nanjing, and Wancheng City in Quanzhou. At the same time, we have also harvested non-residential projects such as Guangfa Bank Beijing Branch, Shanghai Exhibition Center and Xiongan New District Science and Technology Innovation Center pilot Base, through the cooperation mode of equity cooperation, committee service, consultancy and special service, the company has diversified and developed in industrial parks, ecological scenic spots, government and enterprise offices, and the service format has been gradually enriched.
2) the large membership system opens up the consumption scene, which is conducive to the development of value-added services. The integrated member service platform launched in December 22 connects the consumption scenes of various sectors of the Jinmao system. Customers from the real estate, commercial, hotel, property services and other sectors, in all the offline shopping malls in Jinmao, and online platform Yuelian Mall (in the property services section) consumption, can get points "Jinyi", Jinyi can be used for Jinmao full-scene consumption, such as convertibility rights. Property fees, Internet home decoration, online and offline shopping malls, etc. The large member system makes full use of the advantages of the group to achieve resource sharing and meets the omni-directional consumption needs of customers in multiple scenarios, which is conducive to the development of Jinmao service value-added services.
2022H1's community value-added service income is about 250 million yuan, an increase of 221% over the same period last year. The company is managing high-quality projects, and owners' demand for high-quality value-added services is also relatively strong. After the launch of the large member system, it is expected to further expand the service group and increase the penetration of value-added services. We are optimistic about the improvement space of the company's community value-added sector.
3) the endowment of urban operation service resources is high, and the potential is great. Jinmao, a related party, is rich in urban operation project resources in fast-growing regions such as Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta, and Jinmao Service is expected to undertake more consulting and solution business related to urban services in the future. as well as the diversified combination of property management business on the project, such as office buildings, streets, commercial complexes, etc., with great potential for growth.
Profit forecast, valuation and rating: the company is the target of high-end property management with rapid growth, strong brand strength of related parties, high delivery guarantee, improvement of the company's own extension ability, and great potential for community value-added and urban service business. Considering the fluctuation of the real estate market in 2022 and the industry is still bottoming out, we have lowered the growth forecast of the company's real estate related business and lowered the forecast of 2022-2024 net profit to 370 million yuan (down 8%) / 500 million yuan (down 16%) / 650 million yuan (down 14%). The current stock price corresponds to a PE of 10 times / 7 times / 6 times from 2022 to 2024. The company is a central enterprise with a high growth background, has an attractive valuation and maintains a "buy" rating.
Risk hint: the development of value-added services is not as expected, and the intensification of extension competition leads to the project expansion falling short of expectations.
