Core net profit increased 153% year on year in 2021: in 2021, the company's revenue was 1,516 million yuan, up 60.5% year on year; gross profit was 4.7 billion yuan, up 100.2% year on year; Guimu's net profit was 179 million yuan, up 132.2% year on year; core net profit was 195 million yuan, up 153% year on year; the company's 2021 performance was in line with expectations.
Comprehensive gross margin increased rapidly: In 2021, the company's comprehensive gross margin was 31.0%, an increase of 6.1 percentage points over the previous year, mainly due to the contribution of non-owners' value-added services in early planning and design services and post-delivery services with high profit margins. In 2021, the gross margin of the company's property management services increased 0.4 percentage points year on year to 18.2%; the gross margin of community value-added services increased 0.7 percentage points year on year to 40.3% year on year; the gross margin of value-added services for non-owners increased 13.5 percentage points year over year to 47.9%.
The scale grew rapidly, and market expansion was gaining momentum: by the end of 2021, the company's operating area and contract area were 3642 and 57.58 million square meters, respectively, up 106% and 42%, respectively, and the scale grew rapidly. Among them, the area under management by third parties was 12.42 million square meters, accounting for 34.1%, an increase of 21.9 percentage points over the previous year. The company leverages its advantages in the high-end housing sector and relies on high-quality services to obtain a number of high-end residential projects. The average property management fee for expanding residential properties in 2021 was 3.4 yuan/square meter/month.
Boosting the urban service sector: In 2021, the company expanded to 3 urban service projects, including the Jiashan Project, the Zhoushan Project, and the Nanjing Xinyao New Town Project, covering various business formats such as residential, commercial, office buildings, industrial parks, and public hospital construction. We believe that urban operation services are expected to become a new growth point for the company's performance.
Our view: The company has a state-owned enterprise background, and the parent company's capital chain is secure, which is conducive to the continued steady development of the company's business. Although the company is currently small, with the expansion of scale and the development of diverse businesses such as urban operation and community value-added, its performance is expected to be highly flexible, so it is recommended to pay attention to it.
Risk warning: Business expansion and acquisitions fell short of expectations; owners' satisfaction and collection rates fell short of expectations; value-added business expansion fell short of expectations.
