\u3000\u3 China Vanke Co.Ltd(000002) 352 S.F.Holding Co.Ltd(002352) )
Event: the company released its 2021 annual report. In 2021, the company realized an operating revenue of 207187 billion yuan and a net profit attributable to the parent company of 4.269 billion yuan.
Comments:
Performance fell sharply. In 2021, the company achieved a total operating revenue of 207187 billion yuan, a year-on-year increase of 34.5%; The net profit attributable to the parent company was 4.27 billion yuan, a year-on-year decrease of 41.7%; The net profit deducted from non parent company was 1.83 billion yuan, a year-on-year decrease of 70.1%. Among them, 2021q4 company achieved a revenue of 71.326 billion yuan, a year-on-year increase of 60.67%; The net profit deducted from non parent company was 1.501 billion yuan, with a year-on-year increase of 46.07%, mainly because the company completed the consolidation of Kerry Logistics. Quarterly, the net profit of 2021q1-4 deduction from non parent company was – 1.13 billion yuan, 660 million yuan, 810 million yuan and 1.5 billion yuan respectively. In order to alleviate the pressure of production capacity, the company increased capital expenditure in Q1, resulting in losses, which were repaired quarterly.
Economic express business maintained a high growth. In 2021, the company completed 10.55 billion pieces of express business, with a year-on-year increase of 29.7%, realizing rapid growth. Among them, the economic express business achieved a revenue of 32.27 billion yuan, a year-on-year increase of 54.7%, mainly due to the improvement of the single ticket revenue of the company’s e-trademark express business, which is 2-3 yuan / ticket higher than the average price of e-commerce parts in the market.
Improve the business structure and gradually build a comprehensive logistics service provider. In terms of business, the revenue of time express, economic express, express, cold transport and medicine, intra city express, supply chain and international business increased by 7.3%, 54.7%, 25.6%, 20.1%, 59.1% and 199.8% respectively year-on-year, accounting for 46.4%, 15.6%, 11.2%, 3.8%, 2.4% and 18.9% of the main business respectively. The proportion of time express business with relatively high gross profit margin gradually decreased, and the proportion of economic express business, supply chain and international business increased significantly, resulting in the decline of the company’s gross profit margin.
Join hands with Kerry Logistics to accelerate the pace of going to sea. The company completed the acquisition of 51.5% shares of Kerry Logistics in September 2021. Kerry Logistics is a leading international logistics enterprise in the world, with services covering 58 countries and regions. It has strong international comprehensive logistics strength and overseas freight forwarding resources. The acquisition of Kerry Logistics will strengthen the short board of SF international air and sea transportation network and accelerate SF’s pace of going to sea.
Investment suggestion: the company’s revenue has exceeded 200 billion yuan, becoming the largest express logistics integrated service provider in China and the fourth largest in the world. Its performance is repaired quarterly. The invested capacity is expected to be profitable gradually, and the Matthew effect is significant. Huahu airport is expected to be put into use in mid-2022 to further improve the layout of the company’s comprehensive logistics service providers. It is estimated that the company’s earnings per share from 2022 to 2023 will be 1.54 yuan and 1.84 yuan respectively, and the corresponding PE of the current stock price will be 28.88 times and 24.12 times respectively, maintaining the rating of “prudent recommendation” for the company.
Risk warning. Intensified industrial competition, macroeconomic downturn, tightening industrial policies, etc.
