\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 155 Seazen Holdings Co.Ltd(601155) )
Event: on March 31, 2022, the company released the annual report of 2021
In 21 years, the company achieved revenue of 168.23 billion yuan + 15.6%; The net profit attributable to the parent company was 12.6 billion yuan – 17.4%.
Comments: the carry over income increased steadily, and the gross profit margin of commercial rental increased against the trend; Actively expand business operation; Sales fell slightly and land investment was cautious; Finance ranks in the green file; Repurchase demonstrates the sincerity of the company
1) in 21 years, the company achieved a revenue of 168.23 billion yuan, a year-on-year increase of 15.6%; The net profit attributable to the parent company was 12.6 billion yuan, a year-on-year decrease of 17.4%. The profit decline was mainly due to 1.5% The company’s overall settlement gross profit margin was 20.5%, down 3.1pct year-on-year; Among them, the gross profit margin of real estate development business is 17.7% (- 4.1pct), and the gross profit margin of property rental and management business is 72.6% (+ 1.9pct). 2. Carefully withdraw inventory falling price reserves of RMB 4.85 billion (+ 201.2%). Affected by the repeated covid-19 epidemic and the relative shortage of industry liquidity, the company plans to complete 28.017 million square meters of construction area in 22 years, a decrease of 14.9% compared with the actual completed area in 21 years, or affect the release of performance in the short term to a certain extent.
2) in 21 years, the company achieved rental income (including tax) of 8.6 billion yuan, an increase of 50.9% year-on-year. By the end of the 21st century, the company had set up 188 Wuyue squares in 135 cities across the country, and 130 of them had been opened and entrusted for management, ranking first among listed companies at home and abroad. In the next 22 years, the company plans to realize 10.5 billion yuan of commercial income and newly open 25 Wuyue squares (including entrusted ones). The company’s business operation sector continues to make efforts, with obvious rent growth. The moat of “Wuyue Plaza” brand has been built, with high popularity and reputation. It is expected that the subsequent importance in the company’s value system will continue to increase.
3) in 21 years, the company achieved contract sales of 233.78 billion yuan, a year-on-year decrease of 6.8%; The sales area reached 23.547 million square meters, with a year-on-year increase of 0.3%, ranking 16th in the 21-year full caliber sales list of Kerui.
4) under the background of financing supervision, the company’s land investment tends to be cautious. In 21 years, the company added 77 land reserves, with a total construction area of 21.577 million square meters, a year-on-year increase of – 47.9%; The floor price was 3555.4 yuan / square meter, with a year-on-year increase of 17.3%, and the corresponding land to goods ratio was about 35%, still maintaining the land acquisition advantage. By the end of the 21st century, the company had a total land reserve of 140 million square meters; The third tier cities accounted for about 33% of the pressure of the fourth tier cities, and the third tier cities accounted for about 30% of the pressure of the fourth tier cities.
5) by the end of the 21st century, the asset liability ratio of the company was 70.0%, the net debt ratio was 48.1%, and the cash short debt ratio was 1.1x, ranking among the green grades of “three red lines”. In addition, the financing cost of the company decreased by 0.15pct to 6.57%.
6) the company plans to buy back the company’s shares with the maximum repurchase amount of 200 million yuan and the maximum repurchase price of 41.39 yuan / share within 6 months. The maximum repurchase quantity is 4832085 shares, accounting for 0.21% of the company’s current total share capital, demonstrating its development confidence.
Profit forecast, valuation and rating: considering the decline of the company’s completion plan in 22 years, the company’s forecast EPS for 22-23 years is reduced to 6.14 and 6.67 yuan respectively (the reduction range is 30.2% and 35.1% respectively), and the EPS for 24 years is increased to 7.23 yuan; The current share price corresponds to the PE valuation from 2022 to 2024, which is 5.6, 5.2 and 4.8 times. Relying on its good commercial real estate development and operation ability, the company enjoys the advantage of high land acquisition and price negotiation of the complex; The improvement of the financial situation took effect, the prudent operation crossed the cycle and maintained the “buy” rating.
Risk tips: the sales promotion is less than expected, the policy regulation is more than expected, and the completion of the project is less than expected.
