\u3000\u3000 New Dazheng Property Group Co.Ltd(002968) (002968)
After equity payment, the net profit attributable to the parent company increased by 36-39% in 2021 and 49% – 58% in 21q4.
On January 27, the company announced the performance forecast. The company expects the revenue to be 2.09-2.1 billion yuan in 2021, with a year-on-year increase of 58.53% – 59.29%; The net profit attributable to the parent company was 164-168 million yuan, with a year-on-year increase of 24.99% – 28.04%. Among them, the revenue of 21q4 was 647-657 million yuan, with a year-on-year increase of 51.97% – 54.32%; The net profit attributable to the parent company was 47-51 million yuan, with a year-on-year increase of 13.25% – 22.95%.
The company has implemented the equity incentive plan and the absorption of new partners of the employee stock ownership platform, and has recognized the equity incentive fee of 14.58 million yuan (after tax). Excluding the impact of the above share based payment expenses, the net profit attributable to the parent company is expected to be 179-183 million yuan in 2021, with a year-on-year increase of 36.10% – 39.15%; Among them, the net profit attributable to the parent company of Q4 was 61-65 million yuan, with a year-on-year increase of 48.60% – 58.30%.
In 2021, the company’s expected revenue and net profit attributable to the parent after excluding the impact of share based payment fees exceeded the expectations of the performance guidelines.
Market development + M & A and joint venture cooperation + extension services are in full bloom
1. Market expansion brought about revenue growth. The 21-year saturated annualized contract amount was 800 million yuan, an increase of 74% at the same time
In 2021, the company will comprehensively promote the nationalization strategy, quickly establish and break through the ten key central city markets on the basis of consolidating the Chengdu Chongqing market, and promote the rapid development of other regions outside the Chengdu Chongqing region. In 2021, the total bid winning amount of new expansion projects was about 1.7 billion, and the saturated annualized contract revenue was about 800 million, a year-on-year increase of 74%.
Among them, the market expansion outside Chongqing increased by about 72% year-on-year, accounting for about 80%, and the nationwide market expansion was promoted rapidly; Chongqing’s regional market expansion increased by about 86% year-on-year, accounting for about 20%. Chongqing’s market has increased steadily. The new market expansion project not only brings the company a rapid increase in revenue in 2021, but also provides a basis for the improvement of the company’s brand strength in the country and the sustained and stable growth of future performance.
2. Revenue growth brought by M & A and joint venture cooperation
Through mergers and acquisitions, joint ventures and other diversified development methods, the company has helped expand its business scale and increased the promotion of high viscosity and high-value market development models of joint ventures and cooperation. Among them, Sichuan Minxing property consolidated at the end of 2020 achieved a revenue of about 300 million in 2021; The existing projects and new expansion projects brought by several joint ventures such as Chongqing chongbao Property Management Co., Ltd., Guiyang dazhenghuishang Smart City Operation Service Co., Ltd. and Nanyang New Dazheng Property Group Co.Ltd(002968) Property Service Co., Ltd., which have increased capital and shares since 2020, have also made great contributions to income growth.
3. Rapid development of extended services and innovative business
As a public construction property company, the growth of service area, service content and innovative services based on existing service projects are an important way for the company to improve service value and meet customer needs. In 2021, the company’s revenue from extension and value-added services was about 150 million. Supported by basic business, the company strengthens the in-depth development of basic products; Focus on customer needs, explore innovative products, strive to improve quality and efficiency, realize resource realization, and promote business development and upgrading.
In the first year of the implementation of the strategy, the short-term cost investment increased, laying the foundation for medium – and long-term healthy growth
In 2021, the rapid expansion of the company’s business scale led to a significant increase in net profit. In 2021, as the first year of the implementation of the company’s new round of “the Fifth Five Year Plan”, we will focus on building the foundation in the promotion of the strategy, with great efforts and costs, covering all aspects such as national market expansion, optimization and adjustment of organizational structure, talent cultivation and recruitment, improvement and construction of the overall incentive system, information construction, brand promotion and so on, Affected by this, the growth rate of net profit is lower than that of income. The specific main influencing factors include:
1. The initial investment in foreign market expansion and the increase of early-stage costs caused by the increase of new projects; 2. The gradual expiration of social security preferential policies in Chongqing has increased labor costs; 3. In 2021, the equity incentive plan and the amortization of share based payment formed by the absorption of new partners of the employee stock ownership platform will be implemented; 4. Increased management expenses to support the talent reserve and introduction of the company’s large-scale development and digital strategy implementation. Projects and new expansion projects have also made great contributions to income growth.
Adjust the profit forecast and maintain the buy rating
As an independent third-party property service enterprise, the company mainly provides property services for all kinds of urban public buildings, focuses on the operation and management of smart city public buildings and facilities, and provides comprehensive property management services, professional management services and value-added services. By continuously deepening the research on customer needs, operation scenarios and service standards, let customers focus on their main business and create value and high-quality service experience for customers.
In 2021, the company strengthened the improvement of customer satisfaction, implemented a return visit mechanism of comprehensive project question inquiry and multiple review, and reduced the number of active withdrawal projects by excavating problems and improving benefits of on-site management of on-site projects with poor income. In 2021, the company’s project renewal rate is about 94%. In the future, the company will continue to strengthen project renewal, improve customer stickiness and stabilize performance.
As the company recognized the equity incentive fee in 2021, we adjusted the profit forecast for 2021 to 166 million yuan (179 million yuan previously), which remained unchanged from 22 to 23 years, still 255 million yuan and 340 million yuan; PE is 33x, 22x and 16x respectively.
Risk tip: the external expansion is less than expected, the core executives are lost, and the labor cost increases. The performance forecast is only the preliminary accounting results. Please refer to the annual performance announcement.
