Event: the company announced the mid-year report of 2022.
Revenue and profit fell compared with the same period last year. The company achieved operating income of 16.396 billion yuan in the first half of 2022, down 29% from the same period last year. Of this total, the comprehensive tourism business income was 10.549 billion yuan, down 44% from the same period last year, and the gross profit margin was 25%, basically the same as that in the same period in 2021. The income of the real estate business was 5.809 billion yuan, an increase of 44% over the same period last year, and the gross profit margin was 24%, down 49% from the same period last year. As of June 30, 2022, the company's net profit and return net profit were 750 million yuan and 105 million yuan respectively, down 68% and 93% respectively from the same period last year.
Focus on marketing, land reserve is sufficient. As of June 30, 2022, the company had achieved a total contracted sales area of 1.82 million square meters and contracted sales of 27.3 billion, down 42% and 38% respectively from the same period last year, slightly lower than the average of the top 100 in the industry. During the period, the company had a total of 14 development projects under construction with a land transaction value of more than 5 billion yuan, with a total construction area of 35.1366 million square meters, and two new comprehensive land for culture and tourism, one of which was located in Songshan Lake District, Dongguan City. the planned capacity area is 182500 square meters, and the proportion of rights and interests is 51%. One case is located in Longquanyi District, Chengdu, with a capacity area of 97900 square meters, and the proportion of rights and interests is 60%.
The scale of management continues to expand and steadily enhance the market competitiveness of the property sector. In the first half of 2022, the company's property group continued to practice the development concept of equal emphasis on economies of scale, scale and word-of-mouth, with a new management area of 1.9 million square meters and a number of market-oriented projects. As of June 30, 2022, the number of molecular companies across the country has reached 79; the three major platforms of overseas Chinese Town property Wisdom have achieved 290 projects under management, and the ability of project operation and management has been steadily improved.
The "three red lines" are healthy and green, and the debt structure continues to be optimized. Excluding the advance accounts received asset-liability ratio, net debt ratio and cash short-debt ratio in the first half of 2022, the company maintained a green level. As of June 30, 2022, the company's monetary capital balance was 49.963 billion yuan, accounting for more than 10% of total assets; the total amount of interest-bearing liabilities decreased by 4.3 billion from the beginning of 2022, accounting for 0.5% of the total assets; and the short-term interest liabilities due within one year decreased by 7.2 billion compared with the beginning of 2022. In terms of financing, the company approved 10 billion yuan of newly registered corporate bonds in the first half of 2022, and comprehensively used bank financing, debt protection plans and other channels to achieve financing of 22.5 billion yuan, with an average financing cost of 4.36%, down 10 basis points from the beginning of the year. at a lower level in the same industry, and in a continuous optimization channel. We believe that the company has plenty of liquidity, the debt structure continues to optimize, and the financial position remains sound.
Investment advice: "better than the market" rating. We predict that the company's EPS will be 0.50 yuan per share in 2022, and give the company 15-17 times PE valuation in 2022. The corresponding reasonable market capitalization is 619-70.2 billion yuan, and the corresponding reasonable value range is 7.55-8.56 yuan.
Risk hint: the real estate industry is facing the risk of overall shrinking. There is an epidemic impact in the literature and tourism industry.