\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 325 Huafa Industrial Co.Ltd.Zhuhai(600325) )
Key investment points
The operating performance has been steadily improved and the financial situation has been continuously optimized. In 2021, the company’s operating revenue was 51.24 billion yuan, a year-on-year increase of 0.5%; The net profit attributable to the parent company was 3.2 billion yuan, a year-on-year increase of 10.1%. By the end of 2021, the “three red lines” had changed to “green”, and the scale of interest bearing debt had decreased steadily, with a year-on-year decrease of 10%; The structure of interest bearing debt was significantly optimized, and short-term debt decreased by 40%. In 2021, the company collected 70.73 billion yuan in the whole year, with a year-on-year increase of 32.3%. At the same time, it also added 5 billion yuan of small public rental bonds, ranking among the issuance of 10 billion housing rental REITs products, reducing financing costs.
Steady sales performance and sufficient land reserves. In 2021, under the condition of market downturn, the company achieved a total sales area of 4.69 million square meters, a year-on-year increase of – 7%; The sales amount was 121.9 billion yuan, a year-on-year increase of 1.2%, and the sales list rose 2 places to 32 places compared with 2020. The company adheres to the investment strategy of “strategic deep cultivation and precise layout”, focusing on the first and second tier core key cities. In 2021, the company developed 119 investment projects with a total construction area of more than 21.7 million square meters, forming a new “4 + 1” management and control pattern of Zhuhai region, South China region, East China region, north region and Beijing region. At the same time, it is the first time to enter Xuzhou and Yiwu for urban renewal projects, go out of the base camp and acquire land, so as to achieve a breakthrough from “0” to “1”. At present, the company has been stationed in 47 major cities in China. The proportion of soil storage in the first and second tier cities exceeds 90%. The construction area of land reserve is 5.44 million square meters, and the soil storage resources are sufficient.
The coordinated development of diversified businesses and the accelerated take-off of “one core and two wings”. The company takes the residential business as the core and continues to optimize the commercial operation and the two wings of the upstream and downstream industrial chain. Six key projects in Zhuhai, Taicang, Weihai, Zhongshan, Wuhan and other cities have been opened, and HUAFA’s commercial brand has been launched in an all-round way; The three self-supporting business lines of yuechao, Huashang department store and HUAFA Aote Sports Center have gradually taken shape, and the product ecosystem covering commercial real estate and brand management has become more and more mature. On the basis of maintaining the steady growth of the main industry, commercial operation, upstream and downstream industrial chain and the main industry have formed benign interaction and complementarity, its subsidiaries have made continuous breakthroughs, the development of urban industrial clusters has reached a new level, and the layout of “one core and two wings” has been accelerated.
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 9.7%. Considering the steady growth of the company’s operating revenue and financial stability, the company will be given 6.5 times PE in 2022 and the target price is 11.05 yuan, maintaining the “buy” rating.
Risk tips: performance settlement is less than expected, policy regulation risk, diversified business development is less than expected, etc.
