\u3000\u30 Zhongyan Technology Co.Ltd(003001) 44 Songcheng Performance Development Co.Ltd(300144) )
Event: in 2021, the revenue was 1.185 billion / year-on-year + 31.27%, and the net profit attributable to the parent company was 315 million (compared with – 1.752 billion in the same period of last year), and the net profit attributable to the parent company after deduction was 268 million (compared with – 1.768 billion in the same period of last year), which was mainly due to the provision for impairment of 1.86 billion long-term equity investment in the fourth quarter of 20, eps0 12 yuan / share. Among them, Q4 revenue was 169 million / year-on-year – 40.43%, and the net profit attributable to the parent was – 117 million, which significantly reduced the loss year-on-year (compared with – 1.886 billion in the same period of last year). The recovery pace in the second half of the year was slower than that in the first half of the year.
In 2021, the annual gross profit margin was 51.08% / year-on-year -9.85pct, and the sales expense rate was 5.59% / year-on-year -1.46pct; The rate of administrative expenses was 21.62% / year-on-year -10.3pct; Financial expense rate is -0.08% / + 1.34pct.
1q22 was greatly affected by the epidemic, with a revenue of 85 million / year-on-year – 72.16%, realizing a net profit attributable to the parent of – 39 million and a net profit of – 40 million after deduction.
Comments: the annual performance revenue in 2021 was 1.010 billion yuan / year-on-year + 49.39%, recovering to 54% in 2019, of which 1) the revenue of Hangzhou headquarters was 486 million yuan / year-on-year + 69.36%, recovering to 54% in 2019, with a gross profit margin of 43.45% / + 8.55pct. 2) Sanya Songcheng’s revenue was 148 million yuan / year-on-year + 16.41%, recovering to 39% in 2019. The gross profit margin is 67.49% / -9.46pct. 3) Lijiang Songcheng’s revenue was 116 million yuan / year-on-year – 14.85%, recovering to 34% in 2019; The gross profit margin is 57.58%/-17.27pct. 4) Jiuzhai Songcheng’s revenue is 45 million yuan / + 77.18%. 5) Song Guilin’s revenue is RMB 9.1 billion / + 0.07%. Affected by the epidemic in the second half of the year, the overall on-site performance revenue fell 32% year-on-year, 41% in 19 years.
The short-term epidemic situation is still serious. We need to cultivate our internal skills and take many measures to strengthen our future competitiveness: (1) the company continues to adjust the spatial layout, innovate and enrich the content, and promote the breakthrough and upgrading of the model of the performing arts park by taking the song city in Hangzhou and the eternal scene area in Shanghai as the breakthrough. (2) Increase investment and speed up the pace of building a science and technology song city. Upgrade and build a comprehensive product of “culture + tourism + science and technology”. (3) We will strengthen the implementation of the platform development strategy and put it into practice from the aspects of industrial layout, project layout and asset light expansion. We will promote the transfer of Zhuhai and Macao projects into the group and reduce the capital pressure of listed companies. In the future, we will still strive for the opening of Zhuhai project in 2024. After the opening, it will still be awarded to the management of listed companies. In the first three years, we will charge management fees of 80 million yuan, 100 million yuan and 120 million yuan respectively. In the future, if the projects meet the conditions, they will be injected into listed companies first. (4) Accelerate the promotion of refined operation management. Through the comprehensive integration and optimization of departments, levels and posts, the core management structure of “one center and five departments” of the headquarters and “four departments and one group” of each project company is formed, and the “central kitchen” management is used from top to bottom to ensure the implementation of core ideas and reduce intermediate links. (5) Optimize the layout of equity investment management. The company is working with other shareholders to promote the operation of flower house technology capital. In 2021, 181 million investment income mainly comes from flower house investment.
Profit forecast, valuation and rating: due to the impact of the epidemic, the progress of new projects has slowed down. We have lowered the eps62% / 57% in 22-23 years to 0.10/0.20 yuan respectively, and increased the EPS for 24 years to 0.32 yuan. We are optimistic that the company will actively cultivate its long-term competitiveness after the epidemic and maintain the “buy” rating.
Risk warning: the newly opened projects are less than expected, the epidemic situation is less than expected, and the economic recovery is less than expected.
