\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 376 Beijing Capital Development Co.Ltd(600376) )
Core view:
Event: Recently, the company released its 2021 annual report. In 2021, the company achieved an operating revenue of 67.802 billion yuan, a year-on-year increase of 53.31%; The net profit attributable to the parent company was 692 million yuan, a year-on-year decrease of 77.95%; The basic earnings per share was 0.187 yuan / share, a year-on-year decrease of 83.47%.
The decline of gross profit margin, the decrease of investment income and the provision for impairment lead to the pressure on profits. In 2021, the company achieved an operating revenue of 67.8 billion yuan, a year-on-year increase of 53.3%; The net profit attributable to the parent company was 690 million yuan, a year-on-year decrease of 77.9%; The gross profit margin of real estate development business was 24.5%, a year-on-year decrease of 3.2pct, of which the gross profit margin in Beijing decreased significantly, a year-on-year decrease of 14.59pct; Roe was 2.2%, a year-on-year decrease of 8.1pct. This year’s increase in income but no increase in profit is mainly due to: 1) affected by the overall downturn of the real estate industry, the land cost of carried forward income projects is high, the sales price is limited by policies, the proportion of cost to selling price increases, and the gross profit margin of real estate development and operation business decreases by 3.2pct to 24.5% year-on-year; 2) The provision for asset impairment loss was 1.08 billion yuan and credit impairment loss was 140 million yuan, reducing the net profit attributable to the parent company; 3) The net income from investment decreased. The cash paid for investment in the current period was the same as that of last year, but there was no cash inflow from the acquisition of subsidiaries in the current period, resulting in a decrease compared with the same period.
The sales performance grew in adversity, and the sales target in 2022 was 108 billion yuan. The annual sales area of the company was 3.93 million square meters, with sales of 114.9 billion yuan and sales collection of 119.4 billion yuan, respectively completing 98%, 104% and 113% of the plan, with a year-on-year increase of 3%, 7% and 21% respectively. The value of contract amount and sales collection index reached a record high in the same period. The sales performance achieved adverse growth. According to the sales ranking, the company ranked first in the Beijing market. In 2022, the company proposed the goal of signing a contract amount of 108 billion yuan and a sales area of 3.8 million square meters, slightly lower than the sales achieved in 2021.
The company is rich in resources, focuses on Beijing and actively participates in urban renewal. In 21 years, the company has acquired 904000 square meters of land to be developed, 525000 square meters of equity land, 58.1% of area equity ratio, and 1.778 million square meters of capacity construction area. The company’s construction area was 22.37 million square meters, basically the same as that in the past two years, with a new construction area of 4.806 million square meters, a year-on-year decrease of 21.3%. The completed area was 6.804 million m3, a year-on-year increase of 27.5%, exceeding the plan at the beginning of the year. Based in Beijing, the company has made intensive efforts and expanded residential and commercial office projects together. It has accumulated a large number of excellent operational stock assets in Beijing, accounting for 40.1% of the completed area in Beijing. In addition, in terms of urban renewal, the company has a total land area of 15.891 million square meters for the transformation of shanty towns, with a planned investment of 46.31 billion yuan.
The property revenue has achieved rapid growth and explored new operation modes. In the past 21 years, the company’s property operating income was 1.1 billion yuan, a year-on-year increase of 22%, the property leasing area was 820000 square meters, a year-on-year increase of 4%, the number of hotel rooms sold was 200000 per day, a year-on-year increase of 76.2%, and the gross profit margin was 59.4%, an increase of 25.2pct over the previous year. The company actively explores new operation and promotion modes in long-term rental apartments, office buildings and other business forms, and promotes property operation and management under the normalization of the epidemic. In addition, the initiative is also exploring transformation fields such as commercial real estate, pension and cultural innovation. At present, it has not formed a clear control and profit model.
The financing channels were smooth, the scale of interest bearing liabilities decreased steadily, and bond financing channels were expanded. The company insists on optimizing the financing structure and controlling interest bearing liabilities. Grasp the bond window period, and the bond issuance cost is at a low level in the same period. We promoted supply chain factoring financing, opened up new channels in the supply chain of the insurance exchange, and issued a total of 1.29 billion yuan of supply chain factoring products throughout the year. During the reporting period, the company continued to maintain the highest AAA corporate entity rating. In 2021, the company’s total new financing in the whole year was about 41.430 billion yuan, including 7.313 billion yuan of development loans, 10.423 billion yuan of trust loans, 3.5 billion yuan of bond guarantee plan and 20.19 billion yuan of bond issuance scale. The total repayment of interest bearing liabilities due was about 52.386 billion yuan, reducing the scale of interest bearing liabilities by 10.956 billion yuan. The cash short debt ratio index continued to meet the standard. As of the end of the reporting period, the company’s asset liability ratio was 78.68%, a decrease of 1.74pct compared with the previous period. After excluding advances received, the asset liability ratio was 73.60%, the net debt ratio was 147.45%, the cash short debt ratio was 1.22 times, and the leverage level still had room to decline.
Investment suggestion: as a leading state-owned real estate enterprise in Beijing, the company has resource advantages; It opened the Beijing market for the first time and accumulated a large number of high-quality operational assets. In the past 21 years, the company has made steady sales and land acquisition, actively optimized the financing structure, controlled interest bearing liabilities, and expanded bond financing channels with low cost. We expect that the company’s earnings per share from 2022 to 2023 will be 0.30 yuan / share and 0.32 yuan / share respectively. Based on the closing price of 6.51 yuan on April 19, the corresponding P / E ratios will be 21.7 times and 20.3 times respectively. We are optimistic about the long-term performance of the company and maintain the “recommended” rating.
Risk warning: the sales deregulation is less than expected and the financing environment fluctuates.
