\u3000\u3 Ping An Bank Co.Ltd(000001) 914 China Merchants Property Operation & Service Co.Ltd(001914) )
Event: Recently, the company released its 2021 annual report. In 2021, the company achieved an operating revenue of 10.591 billion yuan, a year-on-year increase of 22.42%; The net profit attributable to the parent company was 513 million yuan, a year-on-year increase of 17.25%; The basic earnings per share was 0.48 yuan / share, with a year-on-year increase of 17.26%.
“Fertile soil cloud forest” strives for progress and business performance to a higher level. At the end of the year, the newly increased residential area was 193.81 million square meters, with a year-on-year increase of 7081 million square meters and a net increase of 19.02 million square meters, respectively. The company’s property management sector realized an operating revenue of 9.908 billion yuan, a year-on-year increase of 23.31%, accounting for 93.56% of the total operating revenue; The gross profit margin of the property management sector was 11.11%, up 0.88pct from last year, mainly driven by the improvement of the operating efficiency of some non residential basic properties. With the implementation of the “fertile soil cloud forest” model, good results have been achieved in improving quality and efficiency, the operating performance basically meets the expectations, and the profit has made steady progress.
Outward expansion has made outstanding achievements, and multi-path development has added strong impetus. The company’s market-oriented expansion capacity has always been among the best. This year, the external expansion efforts continue to increase, and the contract amount of newly signed projects has increased rapidly. In the whole year, the company realized the newly signed contract amount of 3.05 billion yuan, an increase of 24% year-on-year, with a growth rate of + 13 PCT compared with the same period last year. Among the newly signed contract amount, 650 million yuan came from the parent company, accounting for only 21.31%, and the dependence on the parent company gradually decreased. In terms of expansion methods, in addition to bidding, the company achieved growth through multiple paths, and the newly signed annual contract amount of “total to total” and joint venture cooperation mode increased by 133% and 298% year-on-year respectively. At the end of 2021, a breakthrough was made in the M & a market, and the equity acquisition of Shanghai Airlines property and China Southern Airlines property, as well as the capital and share increase of Huiqin property, which widened the access to the subject matter and expanded the resource base for stable and sustainable development.
Asset management business basically recovered to the pre epidemic level. Asset management business achieved an operating revenue of 556 million yuan, a year-on-year increase of 23.70%, accounting for 5.25%. In terms of commercial operation, the company is in charge of 44 commercial projects (including preparatory projects), with a management area of 1.79 million square meters; In terms of rental and operation of properties held, the total rentable area is 591200 square meters, and the rental rate is 98%. All businesses rebounded from last year.
We will actively promote the separation of light and heavy. In February 2022, the general meeting of shareholders of the company approved the transfer of 100% equity of Shenzhen AVIC City, Kunshan AVIC real estate and Ganzhou AVIC nine companies to subordinate enterprises of the parent company China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) , and asset light operation helped the company improve quality and efficiency.
Investment suggestion: in 2021, the company successfully achieved the revenue target of 10.3 billion yuan at the beginning of the year. In 2022, the company plans to achieve an operating revenue of 13 billion yuan. The adjustment of the company’s organizational structure has achieved remarkable results, the painful period of integration has passed, the separation of light and heavy assets has been actively promoted, and the company has entered a new stage of steady growth. We believe that the improvement of the company’s operating efficiency will be gradually reflected in 2022, promoting further growth of performance. We expect the company’s earnings per share from 2022 to 2023 to be 0.66 yuan / share and 0.83 yuan / share respectively. Calculated by the closing price of 14.95 yuan on March 21, the corresponding P / E ratios are 22.7 times and 18.0 times respectively. We are optimistic about the long-term performance of the company and maintain the “recommended” rating.
Risk tip: the project expansion is less than expected, and the industry competition is intensified.
