Event: the company released its annual report 2020. during the reporting period, the operating income reached 1.362 billion yuan, an increase of 23.55% over the same period last year. The operating profit excluding investment income was 159 million, an increase of 750 million yuan over the previous year.
There is a marked improvement in cash flow and ample monetary funds. During the period, the decline in the company's return net profit is mainly due to the larger investment income in the same period last year, while the investment income in the current period is-11 million yuan, and the operating profit after excluding investment income still achieves steady growth. In terms of cash flow, the net cash flow of the company's operating activities during the period was 1.224 billion yuan, compared with + 1.563 billion yuan in the same period last year, and the monetary capital was 2.544 billion yuan at the end of the period. sufficient monetary funds and sound cash flow are a strong guarantee for promoting the transformation.
The transformation of multi-ecological strategy and the realization of closed-loop value in three major areas. During the period, the company actively developed the diversified ecological model of real estate + N, focusing on strategic promotion and landing in three major areas: urban renewal and operation business, digital + energy business, capital operation and development business. the goal is to become an expert in innovative urban renewal operations. In terms of real estate business, the company achieved a sales area of 519,000 square meters during the period, which was + 53.6% compared with the same period last year, and the sales amount was 1.043 billion yuan, + 26.1% compared with the same period last year. In terms of investment properties, the revenue of commercial real estate during the period was 458 million yuan, + 66.35% over the same period last year. The operating properties held by the company are all located in the core areas of core cities such as Beijing, Tianjin, Shanghai and Hangzhou, and rental income is guaranteed. In terms of real estate + N ecological industry operation, Wantong took the lead in setting up a "new city sustainable development operation consortium" during the period. strengthen cooperation with countries, central enterprises and leading enterprises in various fields, such as State Grid Comprehensive Energy, GLP, Shangtang Technology, Taiji shares, China Ruida, Fujian Electronics, Shenzhen Computing Energy, etc. strengthen cooperation in comprehensive energy management services in new cities, development of digital cities, integration of production and cities, etc., and give full play to their respective advantages. It has formed a comprehensive capacity ecological cooperation platform for the sustainable development of a new type of city. During the period, the company set up a wholly-owned subsidiary as a platform for the development of Wantong digital technology, whose main business involves the incubation of new industries in the field of technology, injecting strong kinetic energy into the layout of the company's digital industry. The company and Shangtang Science and Technology signed a strategic cooperation framework agreement, and the two sides plan to carry out strategic cooperation in the areas of artificial intelligence application scenarios, artificial intelligence industrial clusters and smart cities to empower various industry scenarios. By the end of the period, the company has formed three joint ventures with GLP. The two sides take the joint development of GLP's existing land as the first batch of cooperation projects and focus on urban renewal, production-city integration, financial capital and other fields. Wanpu Capital Management, which is jointly established by the two sides, will mainly deal in real estate investment M & A funds, REITs-like funds, and so on. Join hands with China Rong Guo Fu and Oriental Wantong to create a closed-loop ecosystem for the realization of industrial real estate value.
The financial soundness and safety cushion is sufficient, and the second buyback shows confidence. During the period, the company's asset-liability ratio was stable at less than 34%, and the interest-bearing debt ratio was only 18%. Its own funds were sufficient, and the high-quality asset structure laid a solid foundation for the restructuring layout and future financing. During the period, the company increased its fund investment, represented by Shangtang Technology, Jin Siming Private Equity Investment and Hanmu No. 3 Private Equity Investment Fund, which achieved a total income of 27.37 million yuan during the period, improving the efficiency of the company's capital use and realizing the full empowerment of shareholders' resources. to form a perfect ecological resource system of the company. During the period, the company completed the repurchase of 66.627 million shares (3.24% of the company's total share capital) by centralized bidding, with a total repurchase fund of 499 million yuan. The company has implemented share repurchase for the second time since January 2021, with a total amount of not less than 150 million yuan and no more than 300 million yuan. As of April 2021, the company has repurchased 232 million yuan.
Investment suggestion: maintain the company's buy rating, consider that the turnover of the existing real estate development business in the initial stage of the transformation is decreasing year by year and the development of new business still needs to be nurtured, reduce the company's EPS in 2021-22 to 0.08 EPS, give it 0.10 yuan in 2023, and the corresponding PE is 85.32 Plus 77.97 times.
Risk hints: the transformation is not as expected; performance forecasts and valuation judgments are not up to expectations.
