Event: Guanghui Logistics issued the 2020 annual report, the results showed that the company's total operating income in 2020 was 4.393 billion yuan, an increase of 53.11% over the same period last year, and the net profit was 829 million yuan, up 1.24% over the same period last year. The net profit after deducting non-return was 924 million yuan, an increase of 8.15% over the same period last year.
The impact of the epidemic situation in the logistics park is greater, and the profitability of transformation and upgrading is improved. As one of the company's key logistics business, the main income of Urumqi Meiju Logistics Park, which is mainly home building materials manufacturers, is property leasing. However, in recent years, with the continuous opening of new home stores in Urumqi and changes in consumption patterns brought about by e-commerce, the living space of offline home building materials market has been greatly reduced. The continuous impact of the two outbreaks of COVID-19 in Xinjiang in 2020 had a further impact on the revenue of the logistics park. the property rental income of the company park in 2020 was 213 million yuan, down 47.97% from the same period last year. In the face of market changes, the company actively develops the business upgrading and transformation of the logistics park. In 2020, Meju Logistics Park successfully built a fashion district, formed a new experiential business format, and the operating efficiency and profitability of the park were strengthened. With the alleviation of the epidemic, the revenue of the logistics park is expected to increase significantly in 2021.
The real estate business provides the main income support, and the business management develops the light asset management model. In 2020, the company's commercial housing sales revenue was 4.067 billion yuan, an increase of 75% over the same period last year, and the company's real estate business continued to contribute the main income. With the tightening of real estate policy and the decline of industry profits, the company's layout of commercial management and the realization of light asset management of commercial real estate are conducive to the sustainable development of real estate business income.
Cold chain business seize the opportunity, give full play to location advantages to explore logistics new business type. The cold chain logistics project being built by the company is located in the core area of the international logistics center of the Silk Road Economic Belt in Urumqi, with obvious location advantages. Under the influence of the epidemic in 2020, the company turned crisis into opportunity, and carried out management by participating in epidemic prevention and control work, which effectively hedged the impact of the epidemic and enhanced the brand awareness of Huileng fresh. The follow-up company is expected to expand its location advantages and build a supply chain system of Xinjiang agricultural products based on Xinjiang radiation. In addition, the company invested 454 million yuan in June 2020 to participate in the railway, the layout of energy logistics business, is expected to further strengthen the logistics business plate.
Investment suggestion: the profitability of the company's logistics park and cold chain business has been strengthened, and the real estate business is sound.
It is estimated that the company's EPS in 2021-2023 will be 1.00 pound 1.09pm 1.16 yuan, corresponding to a PE of 4.64amp 4.26max 4.01X, maintaining a "buy" rating.
Risk Tip: business expansion falls short of expectations and rents fall sharply