\u3000\u3 Ping An Bank Co.Ltd(000001) 914 China Merchants Property Operation & Service Co.Ltd(001914) )
The revenue and profit increased steadily, and the gross profit margin increased steadily: China Merchants Property Operation & Service Co.Ltd(001914) in 2021, the revenue was 10.591 billion yuan, a year-on-year increase of 22.42%, the net profit was 453 million yuan, a year-on-year increase of 10.75%, and the net profit attributable to the parent was 513 million yuan, a year-on-year increase of 17.25%. In terms of itemized revenue, the property management business was 9.908 billion yuan, a year-on-year increase of 22.31%, the asset management business was 556 million yuan, a year-on-year increase of 23.70%, and other businesses were 126 million yuan, a year-on-year decrease of 24.12%, accounting for 93.56% / 5.25% / 1.19% respectively. Affected by the environment of the real estate industry, the asset impairment was 160 million yuan, but the income from changes in fair value generated by investment real estate was 107 million yuan, which alleviated the impact of performance. In 2021, the gross profit margin of the company was 13.8%, with a year-on-year increase of 0.2%. In terms of sub item gross profit margin, the property management business was 11.43%, with a year-on-year increase of 0.47%, and the asset management business was 56.18%, with a year-on-year decrease of 1.09%.
Positioning the asset light operation platform and continuously optimizing the asset debt structure: at the beginning of 2022, the company plans to divest three subordinate enterprises and accelerate the implementation of the asset light operation mode. By the end of the 21st century, the total assets of the company were 16.77 billion yuan, an increase of 2.52% over the beginning of the period; The net assets attributable to shareholders of listed companies were 8.66 billion yuan, an increase of 4.35% over the beginning of the period; The asset liability ratio was 48.85%, down 0.51% from the beginning of the period. The balance of interest bearing debt was 2.75 billion yuan, a year-on-year decrease of 288 million yuan; The debt structure was stable, mainly short-term and medium-term loans. The financial expenses decreased by 46 million yuan year-on-year, including interest expenses decreased by 40 million yuan.
The management scale continued to expand, and the diversified market expansion ability performed well: by 2021, the newly signed annual contract amount of the company’s property management business was 3.05 billion yuan, a year-on-year increase of 24%, 1717 projects under management, and the management area was 281 million square meters, a year-on-year increase of 47%. The company continued to consolidate its leading edge in the non residential market and actively expanded high-quality projects. The number of ten million projects increased by 43% year-on-year. The company explored the market through “total to total” and joint venture cooperation, and the newly signed annual contract amount increased by 133% / 298% year-on-year. The company also widened the target acquisition channels through acquisition and merger. The company’s property management value-added services achieved a revenue of 2.11 billion yuan, a year-on-year increase of 34%, accounting for 21.25% of the property management business revenue, a year-on-year increase of 8.6%. Among them, the development of jiajiahui commercial business accelerated. In 2021, the platform transaction volume was RMB 800 million, a year-on-year increase of 66%, and the revenue was RMB 266 million, a year-on-year increase of about 500%.
The asset management business continues to develop, and the operation of the property held has been steadily repaired: in terms of business management operation, by the end of 2021, the company was in charge of 44 commercial projects (including preparatory projects), with an area of 1.79 million square meters. In terms of property management, the properties held by the company include shopping centers, office buildings and other business forms, with a total rentable area of 591200 square meters and a rental rate of 98%. With the improvement of the epidemic situation, the average rental of shopping centers and office buildings picked up slightly compared with the same period last year.
Investment advice: buy. We expect the company’s EPS to be 0.65 in 2022. Compared with the valuation of comparable companies, we will give the company 28 times PE in 2022, corresponding to the market value of 19.2 billion yuan and the target price of 18.06 yuan, maintaining the “buy rating”.
Risk warning: repeated epidemic, uncertainty of expanding market, uncertainty of asset stripping, and disposal risk of remaining real estate projects
