On the evening of March 22, 2022, Xuhui Yongsheng Service issued an annual performance announcement for 2021; the company achieved revenue of 4.703 billion in 2021, + 50.8% of the same period last year, and home net profit of 617 million, + 58.0% of the same period last year.
Rapid growth in performance and continuous improvement in management: 1) more than 50% increase in revenue and profit: the company achieved revenue of 4.703 billion in 2021, + 50.8% year on year, and home net profit of 617 million, + 58.0% year on year. In terms of income structure, the proportions of property management services, community value-added services and non-owner value-added services are 56.4%, 23.4% and 18.4%, respectively, which are roughly the same as those in the same period last year. 2) the gross profit margin decreased slightly due to the decline of epidemic subsidy and the change of business structure: the company's comprehensive gross profit margin in 2021 was 27.6%, which was lower than that of the same period last year (3.9pct). This was mainly due to the decline of property management service gross profit margin due to the decline of epidemic subsidy slope. At the same time, factors such as the increase in the proportion of low gross margin business in the development period of value-added services, such as beauty housing and housing maintenance, and the expansion of urban service business with lower gross profit margin, pulled down the comprehensive gross margin. 3) the expense rate and tax rate have been optimized:
The company continued to practice lean operations in 2021, managing the sales expense rate of 9.9%, down 0.8 pct from 2020; in addition, the company's income tax rate in 2021 was about 22.3%, which was lower than that in 2020, mainly because some projects enjoyed a 3.7pct rate of 15% in Hainan and Zhuhai, as well as certain concessions in value-added tax and income tax during the epidemic.
With the rapid increase in scale, the parent company Xuhui Group intimate escort: 1) the total contract area in management and contract increased rapidly: by the end of 2021, the total contract area on hand was 270 million square meters, + 49.5% compared with the same period last year; the total contract area in management area was 170 million square meters, + 68.3% compared with the same period last year. 2) Xuhui Group, which relies on steady operation: according to the announcements of Xuhui Holdings Group on January 3, February 24 and March 14, 2022, the company issued US $150 million of priority notes, obtained approval of 5 billion RMB, and completed the first phase of 1 billion votes issued at 4.75% interest rate. according to the group's announcement on January 5, 2021 recorded cumulative contract sales of 247.3 billion, sales area of 1449 million square meters, the sound operation of Xuhui Group. Provide continuous guarantee for the growth of the company.
Equity incentives are waiting to be landed, and there is a lot of room for future mergers and acquisitions: 1) the degree of marketization continues to show: by the end of 2021, the company has managed 140 million square meters of property management services from third parties, accounting for 81.3%. However, the project area from the parent company Xuhui Group accounts for only 18.7%. 2) further improvement of the business format: the company will strengthen the expansion of the non-residential sector in 2021. By the end of 2021, the company accounted for 44.3% of the revenue from non-residential projects, an increase in 2.8pct compared with 2020. 3) Community value-added services blossomed in an all-round way: the company's community value-added service income in 2021 was + 39.2% compared with the same period last year, and all businesses achieved good development. among them, home life services, parking space management and rental, property brokerage and public area value-added business increased by 25.4%, 19.1%, 68.0% and 111.2% respectively compared with the same period last year.
Investment suggestion: the company relies on high-quality private developers, has excellent management, develops actively and steadily, and hands over an excellent answer paper in 2021. With the rapid growth of revenue performance, the business structure continues to be enriched and optimized. The gross profit margin is affected by changes in the business structure, slightly downward in line with expectations, as the business structure gradually stabilizes, it is expected to remain stable in the future. As the benchmark of high-quality private enterprises, we are optimistic about the growth of the company's long-term performance, we maintain the revenue growth rate of 22-23 years, slightly lower the gross profit margin forecast, adjust and introduce the 2024 forecast, the company's EPS in 2022-2024 is expected to be 0.53 EPS 0.73 CPY 0.96 yuan per share (the previous value is 0.55 CPM 0.79 yuan per share), and maintain the "buy" rating.
Risk hint: the delivery progress of residential property affected by the decline of the real estate industry is lower than expected, the competition of third-party extension is more intense than expected, and the profit margin of extension project is lower than expected.