\u3000\u3000 China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) (001979)
Event: the company released the performance express for 2021. The company achieved an operating revenue of 160.643 billion yuan in 2021, with a year-on-year increase of 23.93%; The total profit was 22.843 billion yuan, a year-on-year decrease of 5.25%; The net profit attributable to shareholders of listed companies was 10.372 billion yuan, a year-on-year decrease of 15.35%.
The completed carry over area increased, and the annual revenue exceeded expectations
In 2021, the company achieved an operating revenue of 160.643 billion yuan, a year-on-year increase of 23.93%; The total profit was 22.843 billion yuan, a year-on-year decrease of 5.25%; The net profit attributable to shareholders of listed companies was 10.372 billion yuan, a year-on-year decrease of 15.35%. The company’s operating income increased rapidly, mainly due to the increase in the area of the company’s real estate projects completed and delivered and carried forward, so the carry forward income of real estate business increased. The main reasons for the decline in profits: 1) the gross profit margin carried forward from real estate business decreased year-on-year; 2) The provision for asset impairment and credit impairment was 4.372 billion yuan, reducing the company’s net profit attributable to shareholders of listed companies by 3.456 billion yuan, and the impact on the net profit attributable to shareholders of listed companies increased by 1.272 billion yuan year-on-year; 3) The company’s investment income from the transfer of subsidiaries decreased by 2.445 billion yuan year-on-year, and the resulting net profit attributable to shareholders of listed companies decreased by 2.049 billion yuan year-on-year.
The performance will be affected to a certain extent due to careful provision for impairment
The company made provision for asset impairment of 4.372 billion yuan, reducing the company’s net profit attributable to shareholders of listed companies by 3.456 billion yuan. 1) The provision for credit loss is 981 million yuan. The company makes provision for credit loss for individual receivables according to the characteristics of credit risk. 2) The provision for inventory falling price was 1.719 billion yuan, mainly because the prices of some real estate projects did not meet the expectations during the reporting period. 3) The provision for impairment of investment real estate was 779 million yuan, mainly because the company made provision for impairment of investment real estate with signs of impairment according to the expected rental income and rental rate of the rental market at the end of the reporting period. 4) The impairment of long-term equity investment is 893 million yuan. The company makes provision for impairment of long-term equity investment whose operation is lower than expected and there is no sign of improvement.
The annual sales increased by double digits, and the average sales price was basically flat year-on-year
In 2021, the company achieved a total contracted sales area of 14.6447 million square meters, a year-on-year increase of 17.77%; The contracted amount was 327.3 billion yuan, a year-on-year increase of 327.8%; The cumulative average sales price is 22317.56 yuan / m2, which is basically the same as the annual average sales price of 22324.19 yuan / m2 in 2020. According to the ranking of Kerui, the equity sales amount of the company ranked 9th in 2021, which was the same as that in 2020. Although the industry began to weaken in the second half of 2021, the company maintained the leading advantage, and the annual sales area and amount maintained double-digit growth.
Investment suggestion: the company’s income increased in double digits in 2021, but under the background of industry downturn and epidemic situation in the year, the company’s gross profit margin decreased, and the provision for impairment was carefully made, which affected the performance to a certain extent. Considering the overall decline of the gross profit margin of the industry, according to the performance express, we lowered the net profit of the company from 12.947 billion yuan and 14.484 billion yuan to 10.372 billion yuan and 11.347 billion yuan from 2021 to 2022, maintaining the “buy” rating.
Risk warning: the house price falls sharply, the sales is less than expected, the macro economy is less than expected, and the data of 2021 is the preliminary accounting. The specific data shall be subject to the formal annual report. The sales data may be different from the data disclosed in the regular report, and the relevant data shall be subject to the company’s regular report
