Events. The company publishes its 2020 annual report. During the reporting period, the company's turnover was 135.353 billion yuan, an increase of 21.4% over the same period last year, and its net profit was 12.628 billion yuan, an increase of 15.9% over the same period last year. The Board recommends a final dividend of HK90 cents per share and a special dividend of HK20 cents per share, with a full-year dividend of HK $1.80 per share. By the end of 2020, the company has fully reached the financial target requirements of the "three red lines" and become a "green" enterprise.
The company's operating income mainly includes property sales, property management, commercial operation and hotel business. During the reporting period, the company's property sales revenue was 126.13 billion yuan, up 19.8% from the same period last year; the recorded sales area was 8.306 million square meters, an increase of 18.3% over the same period last year; the average recorded price was 15187 yuan per square meter; contract sales reached 300.31 billion yuan; the cumulative total contract sales area was 17.126 million square meters, up 15.5% and 16.8% respectively over the same period last year; the average sales price was 17536 yuan per square meter In terms of property management income and other aspects, the company's income was 6.235 billion yuan, an increase of 130.8% over the same period last year, of which the property management income was 5.03 billion yuan, an increase of 101.9% over the same period last year. The floor area under management and the contract floor area reached 146 million square meters and 201 million square meters respectively, up 114.4% and 99.4% respectively over the same period last year. In terms of hotel operation, the company's revenue was 1.447 billion yuan, down 31.0% from the same period last year. The company already has 27 (including preparation for construction) international brand hotels and 121 (including preparation and export management) independent brand hotels, of which 32 hotels were newly signed in 2020; in terms of business operation, the company's revenue was 1.538 billion yuan, an increase of 7.7% over the same period last year, of which rental income was 1.076 billion yuan, an increase of 1.1% over the same period last year.
In 2020, the company will have a land reserve of about 81.75 million square meters, with an additional land reserve of 15.35 million square meters (before equity), with an average land cost of 5188 yuan per square meter. The company has an area of 57.73 million square meters under construction, and the total floor area completed is about 9.87 million square meters, an increase of 4% over the same period last year.
According to the company's 2020 annual report, the company will launch about 20.37 million square meters of saleable area in 2021, together with about 10.59 million square meters of saleable area up to December 31, 2020, and the saleable area will be about 30.96 million square meters in 2021.
Investment advice: start the "big aircraft strategy" strategy, "better than the market" rating. The company officially launched the multi-business development model of "big aircraft strategy" in 2020, with property development as the core main body, commercial operation, hotel operation, property management and finance as solid wings; take high-tech, medical, education, pension, culture and other investment as the key tail of balanced development. It is estimated that the EPS of the company from 2021 to 2022 is 4.20yuan and 4.82yuan respectively. Considering that the company is a real estate leader in the all-round development of diversified business, we give the company a reasonable value range of HK $29.84,34.82 for the next six months corresponding to 6-7 times dynamic PE, in 2021, with a "better than the market" rating of 0.84437 RMB / HK $.
Risk Tip: the company faces the risk of policy regulation and sales falling short of expectations.