\u3000\u3 China Vanke Co.Ltd(000002) 968 New Dazheng Property Group Co.Ltd(002968) )
Key elements of the report:
The company’s nationwide business layout has been further deepened, and multi-level incentive measures have been continuously promoted. It will achieve rapid growth in scale and performance in 2021, and it is expected to maintain a rapid growth rate in the next three years.
Event: on March 28, the company disclosed its annual report for 2021, achieving a revenue of RMB 2.088 billion, a year-on-year increase of + 58.40%, and a net profit attributable to the parent company of RMB 166.07 million, a year-on-year increase of + 26.57%. The company plans to distribute a cash dividend of 5 yuan (including tax) to all shareholders for every 10 shares and increase 4 shares with capital reserve for every 10 shares.
Comments:
The performance is in line with expectations, the scale and performance maintain relatively high-speed growth, and the national operation is accelerated: (1) the national strategic layout of the company continues to deepen, the area under management exceeds 100 million square meters for the first time, and the project covers 82 cities in 25 provinces across the country. In the whole year, the total amount of new expansion projects won the bid reached 1.69 billion yuan, and the saturated annualized contract revenue was 820 million yuan, a year-on-year increase of + 74.22%. New projects include landmark projects such as the state organ Affairs Bureau, the economic daily, the winter sports center, Shenzhen Venture Capital Plaza and Zhejiang expressway; (2) Deeply plough the local area of Chongqing, continuously expand the areas outside Chongqing and realize the rebalancing between regions: the number of project management departments of the company reached 477, with a year-on-year increase of + 29.27%, the number of projects outside Chongqing reached 238, with a year-on-year increase of + 48.75%, accounting for 49.9%, and the revenue accounted for 52.76%, with a year-on-year increase of + 18.61pct; The number of projects in Chongqing reached 239, an increase of 14.35% over the previous year, and the revenue accounted for 47.24%.
All business types go hand in hand and blossom in multiple points: the operating revenue of the five business types of office / aviation / public / school / commercial and residential projects accounts for 36.72% / 11.43% / 20.29% / 15.93% / 15.63% respectively, and the revenue of each business type changes by + 134.26% / + 44.92% / + 52.94% / + 30.42% / + 11.02% year-on-year. Aviation property continues to make breakthroughs, reaching 22 airport projects under management, maintaining the leading low level in the industry; Many landmark projects of office property, public property and school property won the bid, which laid the foundation for the continuous improvement of various business forms; By exploring the mode of “property + life service”, commercial and residential properties achieved revenue of + 11.02% while the number of projects did not increase, realizing better attempts and breakthroughs.
The rapid expansion of business leads to the increase in the proportion of new projects or suppresses the company’s gross profit margin to a certain extent, but does not change the logic of the company’s relatively rapid growth: in 21 years, the proportion of mature and new projects of the company is 86.85% / 13.14% and the gross profit margin is 19.56% / 12.60% respectively. Due to the problems such as the cultivation period of new projects and the early investment of personnel and equipment, the comprehensive gross profit margin is periodically reduced to 18.65%, but it is expected to have strong toughness.
Profit forecast and investment suggestions: the net profit attributable to the parent company in 22 / 23 years remains unchanged at 240 / 330 million yuan, and the net profit attributable to the parent company in 24 years is expected to be 420 million yuan, maintaining the “buy” rating.
Risk factors: the external expansion of the company’s projects is less than expected, and the gross profit margin of new projects is less than expected
