\u3000\u3 China Vanke Co.Ltd(000002) 949 Shenzhen Capol International&Associatesco.Ltd(002949) )
The company released its annual report for 2021 on April 7. The annual revenue of the company was 2.88 billion yuan, an increase of 51.9% at the same time; The net profit attributable to the parent company was 105 million yuan, with a decrease of 39.2%. EPS0. 54 yuan / share. Withdrawing large amount of bad debt reserves may be the main reason for the decline of net profit. The company’s operating net cash flow is stable and its ability to control expenses is enhanced.
Key points supporting rating
Revenue increased significantly, and the provision of large amount of bad debts led to a year-on-year decline in profits: the company issued the annual report of 2021, and the company’s revenue in 2021 was 2.876 billion yuan, an increase of 51.9% at the same time; The net profit attributable to the parent company was 105 million yuan, with a decrease of 39.2%; EPS0. 54 yuan / share, with a decrease of 39.2%. In 2021, the net profit attributable to the parent company decreased significantly year-on-year, or mainly due to the company’s provision for large amount of bad debt reserves for individual customers’ Receivable assets. The company’s net operating cash flow was 238 million yuan, basically stable year-on-year; The comprehensive cost rate was 11.2%, and the cost control ability was improved.
The amount of architectural design orders was relatively stable, and the proportion of prefabricated design orders increased: in 2021, the newly signed contract amount of the company’s architectural design business was 2.436 billion yuan, an increase of 5.1% at the same time; Among them, the newly signed contract amount of prefabricated architectural design was 1.086 billion yuan, accounting for 44.6%, an increase of 4.9 PCT year-on-year. The increase of architectural design orders is lower than that in previous years, mainly due to the decline of new construction area and intensified industry competition.
The construction of indemnificatory housing is expected to give further play to the company’s advantages: the company has the first mover advantage in prefabricated construction and BIM Technology. It has been deeply cultivated in Dawan district for many years, participated in the formulation of housing security policies in Shenzhen and participated in the construction of indemnificatory housing projects. In the future, the company will continue to promote the integrated application of new technologies in the field of affordable housing and further improve its comprehensive strength.
Valuation
Considering the gradual stabilization of policies in the real estate industry, we adjusted our performance expectations. It is estimated that the company’s revenue from 2022 to 2024 will be 3.04 billion yuan, 3.71 billion yuan and 4.51 billion yuan; The net profit attributable to the parent is 270 million yuan, 350 million yuan and 430 million yuan respectively; EPS is 1.37, 1.78 and 2.21 yuan respectively. Maintain the company’s buy rating.
Main risks of rating
The growth rate of prefabricated buildings declined, the design fees were lower than expected, the loss of personnel was serious, and the effect of business expansion was lower than expected.
