\u3000\u3 Ping An Bank Co.Ltd(000001) 979 China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) )
Event: the company disclosed the annual report of 2021, realizing an operating revenue of 160643 billion yuan and a net profit attributable to shareholders of listed companies of 10.372 billion yuan, with a year-on-year increase of 23.93% and – 15.35% respectively; The sales amount reached 326834 billion yuan, a year-on-year increase of 17.73%; The basic earnings per share was 1.16 yuan, a year-on-year decrease of 20.55%.
Sales side: the sales amount maintained growth, and the average sales price decreased slightly. In 2021, the company achieved a sales amount of 326834 billion yuan, a year-on-year increase of 17.73%, a decrease of 8.18 PCT compared with last year, and achieved 99% of the sales target of 330 billion yuan set at the beginning of the year; The sales area was 146447 million square meters, with a year-on-year increase of 17.77%, an increase of 11.43 PCT over last year; The average sales price was 22313 yuan / m2, slightly lower than 22324 yuan / m2 last year. The sales target in 2022 is 330 billion yuan, which is the same as the sales amount in 2021. The sales scale of 7 cities including Shenzhen, Shanghai, Suzhou and Nanjing ranks among the top 3, and the sales scale of 16 cities ranks among the top 10, with remarkable results.
Investment side: focus on core cities and adhere to multi-channel investment and expansion. In 2021, the company acquired 113 land in total, with a new land area of 6.66 million m3, a total capacity construction area of 15.59 million m3, an equity area of 8.86 million m3, and an equity ratio of 56.8%. It focuses on core cities such as Shanghai, Nanjing, Guangzhou, Hangzhou, Wuhan and Chongqing. It is located in the Yangtze River Delta of national key urban agglomeration and Guangdong, Hong Kong and Macao, with a total investment proportion of more than 70%, indicating that the company firmly implements the urban deep cultivation strategy. The company adheres to the linkage of multi-channel investment and expansion. The industry city linkage has obtained 9 projects, supplemented soil storage of about 2.15 million m3, acquired 12 projects such as mergers and acquisitions and urban renewal, supplemented project resources of about 1.06 million m3, 14 old reconstruction projects with exclusive qualifications and corresponding soil storage of about 5.1 million m3.
Settlement end: the revenue grew steadily and the net profit attributable to the parent decreased. In 2021, the company achieved an operating revenue of 160643 billion yuan, a year-on-year increase of 23.93%, and the net profit attributable to the parent company was 10.372 billion yuan, a year-on-year decrease of 15.35%. The gross profit margin of the company was 25.47%, down 3.22pct from 28.69% last year; The net interest rate was 9.46%, down 3.59pct from 13.05% last year; The weighted roe was 10.83%, down 3.57pct from 14.40% in 2020. The company’s profitability has declined, mainly due to 1) the growth of the company’s revenue scale due to the increase of the area completed, delivered and carried forward. The decline of gross profit margin is mainly affected by the decline of industrial profit margin and different types of carried forward – East China, Shenzhen and southwest regions account for a high proportion of revenue, but the gross profit margins of the three regions are 11.54%, 36.95% and 17.53% respectively, down 4.65, 0.47 and 4.51pct respectively compared with the same period last year, resulting in the decline of gross profit margin; 2) In 2021, the company made provision for asset impairment and credit impairment of 4.37 billion yuan, with a year-on-year increase of 1.271 billion yuan, a decrease of 3.456 billion yuan in the net profit attributable to the parent in 2021, and a year-on-year increase of 1.272 billion yuan in the impact on the net profit attributable to the parent. In terms of expense control, the rates of sales and management expenses were 2.44% and 1.41% respectively, an increase of 0.14 PCT and a decrease of 0.17 PCT respectively compared with the same period last year. By the end of the year, the company’s contractual liabilities were 148.71 billion yuan, with a performance lock-in of 92.57%.
Financial side: the three red lines maintain the “green file” level and the financing cost is low. At the end of 2021, the company’s asset liability ratio, net debt ratio and cash short debt ratio after excluding advance receipts were 61.67%, 42.82% and 1.25 respectively. The company’s cash on hand was 79.533 billion yuan and its net operating cash flow was 25.977 billion yuan, which was positive for three consecutive years. The company’s financing cost is 4.48%, of which bank financing accounts for 66.07% and non bank financing 33.93%, which is basically stable compared with 67.3% and 32.7% of bank financing in 2020.
Business side: the business in the park is growing steadily, and the holding business is actively promoted. In 2021, the company’s Park business realized a revenue of 32.533 billion yuan, an increase of 15.24% over last year, accounting for 20.25% of the total revenue. In 2021, the holding business was steadily promoted, and three centralized projects were successfully opened during the year; By the end of 2021, the company has concentrated 25 commercial projects in Shanghai, Shenzhen, Nanjing, Chengdu, Chongqing and other 16 cities. Four centralized commercial projects were obtained during the year, which are located in the core areas of Shanghai, Nanjing, Chengdu and Xiamen, with a corresponding commercial volume of 430000 square meters, but the average project volume is 110000 square meters; Three asset light acquisition projects are located in Yantai, Ningbo and Panzhihua. Investment suggestion: the company’s investment focuses on core cities, and its sales are expected to reach a high level in the industry. The company operates steadily, and the holding business is steadily promoted. Referring to the 2021 annual report, we slightly adjusted the company’s revenue in 2022 and 2023 from 182844 billion and 204677 billion yuan to 182812 billion and 204622 billion yuan respectively, and slightly adjusted the net profit from 11.347 billion and 12.473 billion yuan to 11.364 billion and 12.472 billion yuan respectively, with corresponding EPS of 1.43 million, 1.57 million yuan and PE of 9.80 and 8.93x respectively, maintaining the “buy” rating.
Risk tip: the change of industrial policy is less than expected, the housing sales area has fallen sharply, and the macro-economy is less than expected.
