\u3000\u300 Shenzhen Zhenye(Group)Co.Ltd(000006) 9 Shenzhen Overseas Chinese Town Co.Ltd(000069) )
Key investment points
The net profit attributable to the parent decreased, and the capital structure was stable and good. In 2021, the company achieved an operating revenue of 102.6 billion yuan (+ 25%) and a net profit attributable to the parent of 3.799 billion yuan (- 70%). The decline of the company's net profit attributable to the parent was mainly due to the decline of the settlement gross profit margin and the increase in the proportion of minority shareholders' profits and losses. The company's cultural tourism business revenue was 43.3 billion yuan, basically the same as that in previous years, with a gross profit margin of 32%, a year-on-year decrease of 10pp, a real estate business revenue of 59 billion yuan (+ 58%), and a gross profit margin of 21%, a year-on-year decrease of 38pp. The company's "three red lines" indicators are green and excellent, the book monetary capital is 67.6 billion yuan, the capital liquidity is abundant, and the financing cost is 4.46%, maintaining the low level of the industry.
Cultural tourism products continue to innovate, and the business recovery is far beyond the industry average. In 2021, the company received 77.98 million tourists (+ 18%) in 27 scenic spots, 28 hotels, 1 travel agency, 7 open tourist areas and 1 tourism show. Excluding the new projects in 2021, the year-on-year increase was 17% and recovered to 96% in 2019. The recovery is far beyond the average level of the industry. The company continues to innovate the supply of cultural and tourism products. The "bay area light" Ferris wheel opened only eight months, with an income of more than 100 million, breaking the annual revenue record of single amusement projects in China. At the same time, the company upgraded the original project. The number of receptions in Beijing Happy Valley in two months increased by nearly 40% and the revenue increased by nearly 50% compared with the same period in 2019; After the opening of Chongqing Happy Valley phase II super Feixia live theme area, the number of tourists received in June exceeded 300000, and the secondary sales in the park exceeded 10 million yuan, an increase of 101% and 137% respectively compared with the same period in 2019.
Land sales fell while investment fell. The company's sales declined, with a total contracted sales area of 3.99 million square meters (- 14.2%) and contracted sales of 82.5 billion yuan (- 21.6%). The company promoted the acquisition of high-quality projects with "fixed investment and fixed income". In 2021, the company acquired 23 new projects, with a new land area of 2.58 million square meters and a total capacity and construction area of 4.35 million square meters, of which 15 projects were delisted at or near the base price.
Promote digital transformation and strengthen the level of property management. By the end of 2021, the company had accumulated 4.42 million square meters of new property reserve management area, 3.73 million square meters of new property management area and more than 20 million square meters of construction area under management. There were 28 market-oriented property service projects in this year. The company's property management business has completed the national layout, with 74 branches and subsidiaries in the property sector, covering more than 50 cities. In 2021, the company focused on building a digital platform. The sales of its flower orange tourism platform increased by more than 60% year-on-year, and the number of registered users exceeded 11 million.
Profit forecast and investment suggestions. It is estimated that the compound growth rate of the company's net profit attributable to the parent company from 2022 to 2024 will be 42.5%. Considering the accelerated layout of the company's cultural tourism business, sufficient land reserves and good finance, the company maintains the "buy" rating.
Risk warning: the completion delivery is lower than expected, the sales and payment collection are lower than expected, and the recovery of cultural and tourism projects is lower than expected
