\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 155 Seazen Holdings Co.Ltd(601155) )
Event: the company released its 2021 annual report. In 2021, the company achieved a revenue of 168232 billion yuan, a year-on-year increase of 15.64%; The net profit attributable to the parent company was 12.598 billion yuan, a year-on-year decrease of 17.42%; The basic earnings per share was 5.59 yuan / share, a year-on-year decrease of 17.67%.
Settlement grew steadily and control continued to be optimized. The company achieved a revenue of 168232 billion yuan in 2021, with a year-on-year increase of 15.64%; The net profit attributable to the parent company was 12.598 billion yuan, a year-on-year decrease of 17.42%; The decrease in net profit attributable to the parent company was mainly due to 1) the gross profit margin of the company’s main business was 17.68%, a decrease of 4.06pct compared with last year, and the gross profit margin of real estate development and sales business was 17.68%, a decrease of 4.06pct compared with last year; 2) The company made provision for asset impairment of RMB 5.404 billion, including bad debt provision of RMB 554 million and inventory falling price provision of RMB 4.851 billion, affecting the net profit attributable to the parent company of RMB 3.44 billion. Effective cost control: in 2021, the sales expense rate, management expense rate and financial expense rate were 3.5%, 2.5% and 0.65% respectively, down 0.27, 0.26 and 0.02pct respectively compared with last year.
Sales volume increased and prices fell, and the layout of soil storage was balanced. The revenue from the development and sales business of the company was 158118 billion yuan, with a year-on-year increase of 14.93%, mainly due to the completion and delivery of some pre-sale houses and the increase of sales area meeting the conditions for revenue recognition. The annual sales amount of the company was 233775 billion yuan, a year-on-year decrease of 6.85%; The sales area was 23547300 m3, with a year-on-year increase of 0.25%; The average sales price was 9928 yuan / m2, down 7.08% from 10685 yuan / m2 last year. In 2021, the company added 21.58 million cubic meters of soil storage, with a total land price of 76.7 billion yuan and a corresponding floor price of 355337 yuan / m2. The company has abundant total soil reserves. By the end of 2021, the total soil reserves were 138 million m3, accounting for 37%, 39%, 19% and 5% respectively in the Yangtze River Delta, central and Western China, Bohai rim and Dawan district. The company has a relatively balanced layout in various urban circles.
The rent increased rapidly and the operation capacity was strengthened. The company’s property rental and management business realized a revenue of 7.969 billion yuan, a year-on-year increase of 46.62% and a gross profit margin of 72.64%, an increase of 1.88pct over last year. In 2021, the company newly opened 30 Wuyue squares and management output projects, and newly acquired 32 Wuyue squares. By the end of 2021, the company had 188 Wuyue squares in 135 cities across the country, including 130 Wuyue squares that have been opened and managed, with an open area of 124838 million square meters and an average rental rate of 97.63%. The total operating revenue of 26 Wuyue squares exceeded 100 million yuan, showing the strong operating capacity of the company. In 2022, the company plans to open 25 Wuyue squares, and the growth of commercial operation is worth looking forward to.
Meet the requirements of green file, and the financing cost has decreased. All three red lines of the company meet the standard: the asset liability ratio after excluding advance receipts is 69.95%, the net liability ratio is 48.12%, and the cash short debt ratio after excluding pre-sale regulatory funds is 1.07. The operating cash flow was 21.985 billion yuan, which was positive for four consecutive years. The overall average financing cost of the company was 6.57%, down 0.15pct from last year.
Make efficient use of resources and contribute to carbon emission reduction in the field of new energy. The company invested in the establishment of four roof distributed photovoltaic power stations in wusheng energy, Shengzhou and other Wuyue Plaza, and completed and realized grid connected power generation, with an annual power generation capacity of 1.49 million kwh; There are 87 distributed photovoltaic power station projects under construction in Wuyue Plaza, with a total capacity of 50.73mw. After completion, the total annual power generation is expected to be 50.2 million kwh, so as to realize efficient utilization of resources and environmental protection.
Investment suggestion: the company’s sales area has achieved positive growth and abundant soil reserves; Strong commercial operation ability, high rental rate and expected rental income; The financing cost decreased and the leverage ratio improved. Considering that the overall profit margin of the industry is low, based on the 2021 annual report, we adjusted the net profit from 2022 to 2023 from 18.5 and 20.7 billion yuan to 12.9 and 13.4 billion yuan, and the corresponding EPS from 8.17 and 9.16 yuan / share to 5.68 and 5.90 yuan / share, maintaining the “buy” rating.
Risk warning: the sales are not as expected, the macro economy is not as expected, and the sales of shopping centers are not as expected
