Event: the company announced its 2020 annual report that its revenue was 6.565 billion yuan, up 80.18% from the same period last year, and its net profit was 770 million yuan, up 27.04% from the same period last year. The signing data for the first quarter of 2021 are published, with a total contract amount of 4.817 billion, a contract area of 462,000 square meters, and a contract unit price of 104200 per square meter, compared with the fourth quarter of 2020, the contract amount is 4.457 billion, the contract area is 629,000 square meters, and the contract unit price is 70900 per square meter.
The core project entered the harvest period, the contract amount increased by 8% quarter-on-quarter, and the unit price increased by 47%: the company's 2021Q1 increased by 8% compared with 2020Q4, but the unit price increased significantly by 47%. Nearly 9.274 billion contracts were signed in the two quarters, mainly due to the centralized signing period of Luxiangyuan (area).
The company's revenue in 2020 was 6.565 billion yuan, up 80.18% from the same period last year, and its net profit was 770 million yuan, up 27.04% from the same period last year. Q4 achieved revenue of 6.383 billion yuan in a single quarter, up 16605.08% from Q3 in a single quarter, accounting for 97.23% of the annual revenue. Q4's net profit in a single quarter was 478 million yuan, an increase of 217.81% over Q3 in a single quarter, accounting for 62.13% of the annual net profit. The company will achieve sales of 10.558 billion yuan and an area of 4398 million square meters in 2020. The real estate business achieved revenue of 6.507 billion yuan, an increase of 83% over the same period last year. The reasons for the substantial increase in the company's real estate business income are that the company has obtained delivery permits or completed delivery for some plots of land in Luxiangyuan, Zhujiajiao and other projects: 1) the three red lines have not stepped on the line, with abundant cash on hand and room for subsequent expansion: the debt ratio of the company excluding contract liabilities is 63.1%. The net debt ratio is 38.04%, and the cash-to-short debt ratio is 1.3. the company has 18.24 billion cash on hand at the end of 2020, an increase of 14.2 billion over last year. The lower debt ratio lays the foundation for subsequent expansion. The company added 104.32 mu of land reserves in 2020, and the strategic layout of the integrated development of the Yangtze River Delta continued to advance. 2) the net interest rate was 11.72% lower than the same period last year. 5.79 pct: the company's 2020 settlement net interest rate was 11.72%, accounting for 6.83%, an increase of 2.39 pct over the same period last year, mainly due to the increase in real estate sales expenses and interest expenses. 3) Q4 single-quarter profit growth rate is fast compared with the same period last year. 4) the reduction of financial assets led to an increase in investment income: 703 million of the company's investment income increased by 108.19% compared with 338 million last year, mainly due to the increase in investment income contributed by the reduction of western securities stocks and associated enterprises.
Keep up with the policy and focus on developing the business of the five major new cities in Shanghai: in March 2021, Shanghai issued the "14th five-year Plan" on this city.
Speed up the implementation of the planning and construction of new towns ", and speed up the planning and construction of five new towns, including Jiading, Qingpu, Songjiang, Fengxian and Nanhui. The company actively pays attention to the investment opportunities in the planning and construction of five new towns: from the development and completion of commercial housing projects, the planned construction area of projects under construction in Qingpu and Songjiang is 1459 thousand square meters and 78,000 square meters respectively. The company will actively pay attention to the investment opportunities in the advantageous areas such as the old reform in the central city of Shanghai, indemnificatory apartment and the integration of the Yangtze River Delta, during which the construction and sales of the Huangshan and Changzhou projects are progressing smoothly, and the Jiangyin PPP project is implemented according to the established plan.
Investment suggestion: the company has signed high contracts for two consecutive quarters, with a cumulative total of nearly 10 billion yuan. With the continued entry, signing and settlement of high gross profit projects in 2021, and the company is expected to follow the policy focus to develop five major new town business, the company's performance is expected to be supported. The company's net profit from 2021 to 2023 is expected to be 1.614 billion, 2.196 billion and 3.22 billion respectively, corresponding to EPS of 0.64,0.87,1.27 yuan per share. The corresponding PE is 7.96X, 5.85X, 3.99X.
Risk hints: the settlement of the real estate business is not as expected, the investment return is not as expected, the contract delivery of the core project is not as expected, and the new town development policy is not as expected.