\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 155 Seazen Holdings Co.Ltd(601155) )
Revenue increased slightly, and the “three red lines” maintained the green level. In 2021, the company achieved an operating revenue of 168.2 billion yuan (+ 16%) and a net profit attributable to the parent company of 12.6 billion yuan (- 17%). The decline in performance was mainly due to the decline in the gross profit margin of development business. Property development business (+ 1.577 billion yuan, + 1.579 billion yuan), and gross profit margin of property management business (+ 1.577 billion yuan), the company’s revenue (+ 1.577 billion yuan, + 1.577 billion yuan). At the end of 2021, the company’s net debt ratio was 48.1% (+ 4.4pp), the cash short debt ratio was 1.07 times, the “three red lines” remained green, and the financing cost decreased to 6.57%.
The operation remains stable and adheres to regional deep cultivation. In the context of the overall decline in sales in the industry, the company achieved a sales amount of 233.8 billion yuan (- 6.9%) and a sales area of 23.55 million m3 (+ 0.24%), ranking 16th in the annual sales amount of the industry. The company implements the regional deep ploughing standard of “the market share exceeds 10%, the market share exceeds 20%, the market share exceeds 30%, and the market share reaches the top three in Jiangsu Province and Tianjin, of which Tianjin accounts for 5%; Changzhou, Jiangsu Lianyungang Port Co.Ltd(601008) , Suqian and other cities account for the top five local cities.
Sufficient land reserves, focusing on the development of key urban agglomerations. In 2021, the company added 77 new land reserves, with a total construction area of 21.58 million square meters, and the average floor price was 3555 yuan / square meter, with obvious land cost advantages. The company has accumulated 138 million square meters of soil storage, which can meet the operation needs in the next year. The company insists on deep cultivation in the Yangtze River Delta region and focuses on other core urban agglomerations. The first and second tier cities in the company’s soil storage account for 37% and the third and fourth tier cities in the Yangtze River Delta account for 30%.
The scale of Wuyue continues to expand, and the scale of rent increases steadily. By the end of 2021, the company has arranged 188 Wuyue squares in 135 cities across the country; 130 Wuyue plaza have been opened and managed, with an opening area of more than 12.48 million square meters (+ 32.8%). In 2021, the tax included rental income was 8.6 billion yuan, with a year-on-year increase of 51.7%, and the rental rate reached 97.6%, of which the total operating income of 26 Wuyue squares exceeded 100 million yuan. Wuyue Plaza expanded its cooperation base with brands. During the reporting period, 30 starlight brands achieved total sales of 9 billion yuan and 475 new stores. The territory of “100 cities and 100 stores” is constantly extending new boundaries. In 2022, the company plans to achieve a total commercial revenue of 10.5 billion yuan, newly opened Wuyue Plaza and 25 entrusted projects.
Profit forecast and investment suggestions: it is estimated that the compound annual growth rate of the company’s net profit attributable to the parent company from 2022 to 2024 will be 12.5%. Considering that the company promotes the low cost of land acquisition through commercial land acquisition, the development of commercial operation bucks the trend and the continuous improvement of sales scale, the “buy” rating will be maintained.
Risk warning: the annual performance settlement is less than expected, and the business operation expansion is less than expected.
