In terms of the company's financial data, the company's revenue in 2020 increased 63% year-on-year to 1.76 billion yuan (the same below), slightly lower than we expected. Among them, the income of property management services / non-owner value-added services / community value-added services / professional services increased by 48.9% / 53.3% / 135.2% respectively from a year earlier to 1.01 billion / 420 million / 190 million / 140 million yuan, and the proportion of community value-added services exceeded 10% for the first time. The attributable core net profit increased by 93.7% to 233 million yuan compared with the same period last year, which was 7.7% higher than our expectation / company target by 5.9%. The attributable net profit margin increased significantly from 11.1% in 19 years to 13.2% in 20 years, mainly due to: 1) thanks to the increase in unit price, cost control and high gross margin, the overall gross profit margin increased from 28.2% in 19 years to 30.2% in 20 years. 2) the share of SG&An in income decreased from 11.6% in 19 years to 11.0% in 20 years. In terms of operation, the contract area of the company (excluding city public service) increased by 34.65 million square meters or 64.3% compared with the same period last year, reaching 81.7 million square meters. Time China delivery / independent extension / acquisition (Haoqing, Yaocheng, Kejian) contributed 11.0%, 25.6%, 63.4%, respectively, and Waituo's contribution to growth increased significantly. The company's managed area (excluding city public service) increased by 79.1% to 688000 square meters compared with the same period last year, with non-residential area accounting for 68.3% according to property type, and Guangdong-Hong Kong-Macau Greater Bay Area area accounted for 66.1% by region. The collection rate of management fees increased from 90% in 19 years to 93% in 20 years.
Adhere to the "4321-year Plan" core strategy to promote high-quality growth
At the performance meeting, the company announced the "4321" core strategy: 1) ploughing the four core urban agglomerations in the Great Bay area, Yangtze River Delta, Chengdu, Chongqing and Central China; 2) laying out the three core formats of housing, industry and government construction; 3) realizing the two core growth points of property management services and community value-added services; 4) establishing a lifecycle "science and technology + service" platform. In terms of scale expansion and growth quality, the company proposes: 1) three-year CAGR;2 with 50% core net profit in 20-23) 38 million / 4600 third-party contract area will be added in 2021 / 2022 (vs 202.030 million square), and the ratio of project investment to project mergers and acquisitions will increase to 5pm 5 and 6x4 (vs 202020 7and3); 3) the proportion of community value-added services in income will increase to more than 25% in 2024. We are optimistic about the company's clear development strategy and determination to promote high-quality growth.
Raise profit forecast and lower target price to HK $11.24
Under the new strategy, we expect the quality of the company's growth to continue to improve. 20 years of better-than-expected performance growth, so we raised the 22nd profit forecast of 21Compare by 8.8% Universe 10.8% to 416 million / 613 million, and introduced the 2023 forecast of 800 million yuan. Taking into account the upside in market interest rates, we lowered our target price to HK $11.24, corresponding to 22x/15x 's 21 / 22 PE. The target price has 84.9% room to rise against the previous closing price, and we reiterate our "buy" rating.
Risk hints: (1) the market interest rate has risen sharply; (2) the expansion of the company is not as large as expected.