Event: the company released its annual report in 2010. during the reporting period, the operating income was 456.06 billion yuan, up 6.5% from the same period last year, and the net profit was 15 billion yuan, up 1.7% from the same period last year.
The growth of real estate business is steady, and the decline in gross profit margin is relatively small. During the period, the carry-over income of the real estate business was 194.78 billion yuan, + 0.24% compared with the same period last year, and the revenue of the infrastructure business was 233.44 billion yuan, + 23.9% of the same period last year. The growth rate of net profit in the current period is lower than that of revenue growth, mainly due to a decrease of 4.091 billion yuan in investment income compared with the previous period (2.107 billion yuan in investment income from the acquisition of control of relevant companies in the same period last year and 2.715 billion yuan in investment income from the sale of Wuliqiao project). In terms of profit margin, the company achieved a gross profit margin of 14.4%, year-on-year-1.1pct, of which the real estate business gross profit margin of 26.4%, year-on-year-1.19pct; home net profit rate of 3.3%, year-on-year + 1.7pct. As of the end of the period, the contract liability was 421.5 billion yuan, + 10.6% compared with the same period last year, covering 92.5% of revenue in 2020. During the period, the three fees / revenue was 5.3%, year-on-year-0.5pct, sales fee / revenue was 4.4%, year-on-year-0.2pct, financial expenses / revenue was 1.0%, year-on-year-0.3pct.
Investment focuses on high-energy level, multi-business coordinated development. In terms of real estate business, during the period, the company realized sales of 358.4 billion yuan,-7.6% compared with the same period last year, housing accounted for 76%, commercial offices accounted for 24%, and recorded 308.9 billion yuan in sales rebates, with a corresponding payback rate of 86%; realized sales area of 2909 million square meters, year-on-year-10.7%; to achieve an average sales price of 12320 yuan / flat, + 3.4% compared with the same period last year. In terms of land acquisition, the company obtained 90 projects during the period, with a land area of 2680 million square meters, a year-on-year increase of-23.6%; the amount of land acquired was 83.8 billion yuan, + 0.8% year-on-year; and the average land price was 3127 yuan per square meter, + 32.0% compared with the same period last year, mainly due to the gathering of newly acquired projects to high-energy cities. The proportion of goods value in first-and second-tier cities increased to 70%, and the average floor price / sales price was 25.4%, which was + 5.5pct compared with the same period last year. During the period, the company started 3178 million square meters,-24.32% of the same period last year, and completed 2356 square meters,-5.84% of the same period last year. In terms of infrastructure business, the infrastructure industry achieved revenue of 233.4 billion yuan, + 24% of the same period last year. Through coordination with real estate, it also undertook a number of infrastructure projects under comprehensive development, with new contracts signed for the whole year of 610.3 billion yuan, + 62% of the same period last year. In other aspects of business, the business scale of the trade industry continues to grow. International trade, retail and other industries have further expanded, with annual revenue of 8 billion yuan, + 19% compared with the same period last year. From the perspective of hotel tourism, as of the end of the period, the company has 45 operating hotels, with a total of 12246 rooms, including 30 self-operated hotels and 2 overseas hotels.
Under the three-year downgrade plan, two lines are expected to "turn green" in 2021. The financing cost of the company during the period was 5.64%, which was + 0.04pct compared with the same period last year. At the end of the period, the company recorded an interest-bearing liability of 313.24 billion yuan, + 6.8% compared with the same period last In terms of the three red lines, the asset-liability ratio of the company excluding advance receipts during the period is 84.1%, the net debt ratio is 135%, and the cash short-debt ratio is 0.97, maintaining the "red file". The company launched "three-year, three-step deleveraging" in 2021.
The plan is to reduce the size of interest-bearing liabilities, adjust the structure of long-term and short-term debt, and increase unrestricted monetary funds. With regard to the pace of the downgrade, the company said that it strives to achieve two lines of "turning green" in 2021. According to 2021Q1 data, the cash-to-debt ratio has been met, and the three red lines have been optimized to orange.
Investment advice: the company is given a buy rating for the first time. It is estimated that the EPS of the company in 2021-23 will be RMB 1.53, 1.78, 2.01, respectively, and the corresponding PE will be 2.83 times that of 3.70, 3.18.
Risk hints: there are repeated uncertainties in the epidemic; performance forecasts and valuation judgments are not up to expectations.