\u3000\u3 Ping An Bank Co.Ltd(000001) 914 China Merchants Property Operation & Service Co.Ltd(001914) )
The company’s performance grew steadily and the gross profit margin increased. In 2021, the company achieved a total operating revenue of 10.59 billion yuan, a year-on-year increase of 22.4%; The net profit attributable to the parent company was 510 million yuan, a year-on-year increase of 17.3%. The comprehensive gross profit margin was 13.8%, an increase of 0.2 percentage points over 2020; The management fee rate was 3.7%, 0.3 percentage points lower than that in 2020; The net interest rate was 4.8%, down 0.2 percentage points from 2020. The year-on-year decline in the company’s net interest rate was mainly due to the provision of assets and credit impairment of 161 million yuan in 21 years, which correspondingly reduced the net profit attributable to the parent by 125 million yuan. In addition, the company’s income tax rate was 43.9%, an increase of 3 percentage points over 2020.
The scale of property management has increased rapidly, and the non residential field has continued to take the lead. In 2021, the company managed 1717 projects, an increase of 279 compared with 2020; The area under management was 281 million square meters, a year-on-year increase of 47.2%, and the growth rate of property management scale increased significantly. Among them, the proportion of non residential increased by 9 percentage points to 59%. In 2021, the company’s non residential advantageous business forms developed rapidly, and the area under management of parks, hospitals, urban services and other business forms increased significantly. The overall gross profit margin of the property management sector increased by 0.5 percentage points to 11.4%. On the one hand, the increase in the gross profit margin and management fee rate was due to the increase in the scale and density of property management, which showed the scale effect, and the proportion of non residential business increased significantly. In the first mock exam, the company has implemented the standardized action of “one format and one temsector”, and centralized and unattended car park operations.
Actively expand multi-path and achieve a breakthrough in M & A. In 2021, the newly signed contract amount of the company was 3.05 billion yuan, with a year-on-year increase of 24.2%, of which the proportion of third parties increased by 4 percentage points to 79%, and the market-oriented expansion ability was further enhanced. The company expanded the scale of its total expansion and established in-depth strategic cooperation with many enterprises. The total newly signed contract amount increased by 133% year-on-year. In 2021, the company established eight new joint ventures with local resource platforms, and the newly signed contract amount increased by 298% year-on-year. The establishment of the joint venture also laid a foundation for the subsequent improvement of regional density and concentration. At the same time, the company achieved a breakthrough in M & A, acquired the properties of Shanghai Airlines and China Southern Airlines, and locked in the 65% equity of Shenzhen Huiqin.
The platform business has achieved initial results and actively promoted asset divestiture. In 2021, the company’s home exchange cloud platform achieved leapfrog growth, with an operating revenue of 266 million yuan, a year-on-year increase of 494%, and the re purchase rate of the mall increased by 25.4%. At the same time, the company has divested the assets of AVIC City, Kunshan AVIC and Ganzhou, with a total transaction price of 778 million yuan, optimized the asset structure and focused more on the main business, which is expected to improve the operation efficiency of the property sector.
Investment suggestion: we predict that the company’s EPS will be 0.63/0.77/0.95 yuan / share from 2022 to 2024, and the corresponding PE will be 23.8/19.5/15.9 times respectively. The company will be given a “buy” rating for the first time.
Risk tips: internal integration is not as expected, labor costs are under great upward pressure, real estate project disposal is uncertain, industry policy risks, etc.
