\u3000\u3 Ping An Bank Co.Ltd(000001) 914 China Merchants Property Operation & Service Co.Ltd(001914) )
Ping An View:
The leader of property management of central enterprises, big property + big asset management two wheel drive China Merchants Property Operation & Service Co.Ltd(001914) is a property asset management and service platform under China Merchants Group. It was restructured and listed in 2019 and is the subject of A-share property management scarcity. At the end of 2021, the management area was 280 million square meters, which was at the leading level of property management of central enterprises. With the goal of becoming a “leading property asset management operator in China”, the company develops two core businesses of property management and asset management, with revenue contribution of 93.6% and 5.3% and gross profit contribution of 77.7% and 21.4% in 2021. Relying on the business model of “fertile soil and Yunlin”, property management continues to develop for the better. Commercial operation by the end of 2021, 44 commercial projects (including preparations) were under management, which began to take shape.
The advantages of resource endowment are prominent, and the marketization ability of the whole business type is remarkable. The company’s controlling shareholder China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) has strong strength and multi-dimensional support for business development, including active sales to ensure short-term delivery, sufficient soil storage to support medium-term expansion, holding the property “double hundred” strategy to promote the continuous breakthrough of asset management business. In the long run, China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) is expected to benefit from the optimization of the real estate pattern and bring more imagination to the scale development of the company. The actual controller, China Merchants Group, is rich in ecological resources, which is conducive to the formation of synergy at the business level of value-added services. In addition, the company has strong market-oriented development ability and comprehensive service ability of the whole industry. Under the intensification of industry competition, it helps to strengthen the comprehensive strength and ensure the acquisition of share. In 2021, the third-party management area accounted for 67.7%, and the residential and non residential management area accounted for 41% and 59%; The third-party management area is 190 million square meters, which is at the leading level in the industry.
We will actively promote the separation of light and heavy, and the results of improving quality and efficiency can be expected. At the beginning of 2022, the company decided to transfer the equity of Shenzhen AVIC City, Kunshan AVIC and Ganzhou Jiufang, and made substantive steps in the separation of light and heavy assets. In 2021, focus on business pain points and implement more than 100 improvement measures; At the same time, we will further promote internal integration around organizational integration, human efficiency management, team construction and mechanism construction. With the improvement of business and management ability, it is expected that the profitability and business acquisition ability of the company are also expected to be boosted.
Investment suggestion: as the leader of property management of central enterprises, the company has outstanding advantages in resource endowment and market-oriented development, and strong comprehensive service capacity of multi industry, which is expected to benefit from the reconstruction of industry structure; Substantive steps have been taken to separate light and heavy assets, further promote internal integration, improve quality and efficiency, and the results can be expected. It is estimated that the company’s EPS from 2022 to 2024 will be 0.62 yuan, 0.79 yuan and 1.00 yuan respectively, and the corresponding PE of the current stock price will be 27.7 times, 21.8 times and 17.3 times respectively. The company will be given a “recommended” rating for the first time.
Risk tips: 1) the delivery rhythm of the controlling shareholder is lower than the expected risk: the fluctuation of the real estate market and the change of the rhythm of sales collection affect the sales and completion of the controlling shareholder, which may lead to the risk that the delivery rhythm is lower than the expected risk; 2) The risk that the expansion process is less than expected: the contraction of real estate scale affects the capacity of market expansion, and the intensification of market expansion competition will lead to the risk that the expansion scale is less than expected; 3) Risk that the results of improving quality and efficiency are less than expected: the separation process of light and heavy assets may be lower than expected, and the pace of efficiency improvement brought by organizational structure adjustment and internal integration may be relatively slow.
