Events. The company publishes its 2020 annual report. During the reporting period, the company achieved operating income of 21.705 billion yuan, an increase of 1.19% over the same period last year; the net profit belonging to shareholders of listed companies was 1.55 billion yuan, down 36.20% from the same period last year. The company intends to pay a cash dividend of 1.70 yuan (including tax) to all shareholders for every 10 shares.
During the reporting period, affected by the epidemic, the net profit of shareholders belonging to listed companies decreased by 36.20% compared with the same period last year.
According to the company's 2020 annual report, during the reporting period, the company achieved a total of 27.2 billion yuan in contracted sales, an increase of 11% over the same period last year, and 101% of the annual contracted sales target. Although the contracted sales area decreased slightly to 1.08 million square meters, the average sales price broke through the all-time high of 25200 / square meters, an increase of 27% over the same period last year. During the reporting period, the company's real estate construction area was about 2.89 million square meters, an increase of 13 percent over the same period last year, and the completed area was about 99,000 square meters, an increase of 2 percent over the same period last year. In terms of new land storage, the company added 11 high-quality plots in 2020, with a new capacity area of 2.77 million square meters. The proportion of second-tier and above cities in the new land storage has reached 65%. In addition, the area of equity transfer projects in the new land reserves accounts for more than 30%.
Under the pressure of the epidemic, the company achieved rent + property management fee income of about 1.149 billion yuan for the whole year, which is basically the same as that of the same period in 2019. At the end of the reporting period, the company's composite occupancy rate was only slightly lower than at the end of 2019 by about 4 percentage points, which was basically the same as in mid-2020. By the end of the reporting period, the company had signed 6 light asset export projects, including 4 commercial projects and 2 themed entertainment projects.
According to the company's 2020 annual report, the company plans to achieve contract sales of 38 billion yuan in 2021, an increase of 40% over the same period last year. The income from planned rent and property management fees reached 1.49 billion yuan, an increase of 30% over the same period last year.
Investment advice: layout of first-and second-tier cities, create a commercial real estate leader, "better than the big city" rating. The company is a comprehensive real estate listed company under Shimao Group, which integrates comprehensive commercial real estate development and sales, commercial operation and management, and diversified investment. The company deeply ploughs 8 core urban agglomerations. At the end of the report period, the company has been stationed in more than 30 cities and has more than 60 projects, with an area of about 2042 million square meters under construction. Considering that the company "plans to achieve an annualized growth rate of 40% in sales contracts and 30% annualized growth in self-ownership and management income in the next five years", we expect that the company's EPS in 2021-2023 will be 0.47,0.59 and 0.79 yuan, with reference to the comparable company's dynamic PEG valuation of 0.68 times, we give the company 2021 dynamic PEG valuation range of 0.45-0.5 times. The compound growth rate of the company's homing net profit in the next three years is 23.95%, thus the corresponding reasonable value range of the company is 5.07-5.63 yuan, maintaining the company's "better than the market" rating.
Risk hint: the company's rental and sale business faces the risk of raising interest rates and policy regulation, as well as the risk of economic downturn.