\u3000\u3 Ping An Bank Co.Ltd(000001) 914 China Merchants Property Operation & Service Co.Ltd(001914) )
Event: the company disclosed the annual report of 2021, which realized an operating revenue of 10.591 billion yuan, a year-on-year increase of 22.42%, a net profit attributable to the parent company of 513 million yuan, a year-on-year increase of 17.25%, and a basic EPS of 0.5% 4837 yuan / share, a year-on-year increase of 17.26%.
Increase project cost and improve property management ability. In 2021, the company achieved an operating revenue of 10.591 billion yuan, a year-on-year increase of 22.42%, and a net profit attributable to the parent company of 513 million yuan, a year-on-year increase of 17.25%. 1) The increase of the company’s revenue scale was mainly due to the increase of the original property management projects and the company’s newly expanded property management projects. 2) the gross profit margin increased by 0.15 PCT to 13.76%; Improvement of expense control ability: the rates of sales, management, finance and R & D expenses increased by 0.08, decreased by 0.38, decreased by 0.81 and increased by 0.13 PCT to 0.82%, 3.65%, 1.25% and 0.35% respectively; 3) The net interest rate of the company decreased from 4.73% in 2020 to 4.27% in 2021, mainly due to the provision of asset impairment loss of RMB 135 million for the parking spaces held by the subordinate projects of Tianjin Jiufang City Plaza, Longyan BOC Zijin Yunxi, Hengyang AVIC city garden and Nanguang mingshiyuan, and the provision of credit impairment loss of RMB 62 million for the property management fees that may not be collected by the subsidiaries.
Residential business forms account for more than half, and the gross profit margin of professional services is high. In 2021, the company’s property management sector achieved a revenue of 9.908 billion yuan, a year-on-year increase of 23.31%, accounting for 93.56% of the total revenue and 11.43% of the gross profit margin. 1) At the end of the year, the area under management was 281 million m3, an increase of 90.13 million m3 over 2020, of which 906986 million m2 came from the controlling shareholder, accounting for 32.27%; In terms of business types, residential and non residential accounts for 58.92% and 41.08% respectively. 2) In 2021, the company’s basic property management services achieved a revenue of 7.803 billion yuan, a year-on-year increase of 20.72%; The gross profit margin of infrastructure management was 11.11%, up 0.88pct from 10.23% last year; The average in pipe price is 2.31 yuan / Ping / month, which is lower than that of 2.82 yuan / Ping / month last year. Among them, the average in pipe price of residential and non residential is 2 and 2.53 yuan / Ping / month respectively, which is 0.21 higher and 1.33 yuan / Ping / month lower than that of last year. 3）
Professional services grow rapidly and the gross profit margin is high. In 2021, the company’s professional services achieved a revenue of 1.84 billion yuan, a year-on-year increase of 20.49%, and the corresponding gross profit margin was 13.77%. The company’s professional services include case marketing, real estate brokerage business, facility management service and construction technology service. The revenue of each business accounts for 42.91%, 21.45% and 21.34% of the professional service revenue respectively, and the gross profit margin is 11.27%, 19.50% and 10.86% respectively; The business expansion of rental and sale brokerage and parking space underwriting has helped the rapid development of professional value-added services.
Asset management services from controlling shareholders increased significantly. The operating income of the company, including property leasing and business services, increased by 25.5% year-on-year, accounting for 25.5% of the total operating income of the company in 2021. 1) In terms of commercial operation, by the end of 2021, the company was in charge of 44 commercial projects (including preparatory projects), with a management area of 1.79 million m3. Among them, there are 4 self operated projects, 35 entrusted China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) projects, 5 light asset management output projects, and the projects of entrusted holding shareholders have increased significantly, with an increase of 17 projects during the year. 2) In terms of properties held, the company has a total rentable area of 5912000 m3. By the end of 2021, the overall rental rate has reached 98%, including hotels, shopping centers, commercial writing and other business formats.
Actively promote the divestiture of heavy assets. At the beginning of 2022, the general meeting of shareholders of the company agreed to transfer all the equity of Shenzhen AVIC City, Kunming AVIC and Ganzhou Jiufang to the subsidiaries of the controlling shareholder China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) to make the strategy of asset light operation platform clearer.
Investment suggestion: the company is backed by two central enterprises, China Merchants Group and AVIC group, with superior project expansion ability.
In 2021, the company paid attention to the increase of the average price of residential business and the rapid growth of professional services. Asset management services benefited from the growth of commercial projects of controlling shareholders, with a large increase of projects under management. At the same time, the company has superior management ability, and the overall rental rate of property held reached 98%. Based on the 2021 annual report of the company, we lowered the net profit of 22-23 years from 1.122 and 1.443 billion yuan to 722 and 910 million yuan respectively, the corresponding EPS from 1.06 and 1.36 yuan / share to 0.68 and 0.86 yuan / share respectively, and the corresponding PE is 21.12x and 16.76x, maintaining the “buy” rating.
Risk warning: property fee collection is less than expected, business development is less than expected, and inventory impairment is large
