\u3000\u3 China Vanke Co.Ltd(000002) 818 Chengdu Fusen Noble-House Industrial Co.Ltd(002818) )
Event overview
The company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 391 million yuan, a year-on-year increase of 13.29%; The net profit attributable to the parent company was 226 million yuan, a year-on-year increase of 33.53%; The non net profit deducted was 218 million yuan, a year-on-year increase of 8.22%. In terms of cash flow, the net cash flow from operating activities was 210 million yuan, an increase of 3.96% over the same period last year. Analysis and judgment:
Revenue side: it is less affected by the epidemic and its operation remains normal
In Q1 2022, the company achieved a revenue of 391 million yuan, an increase of 13.29% year-on-year and a decrease of 4.34% month on month. In Q1 2022, the company’s business activities were less affected by the epidemic. The company has been deeply engaged in the regional market for many years and holds mature properties in the core business district of the central urban area of Chengdu, with a construction area of more than 1.1 million square meters. With superior location, mature supporting environment and convenient and fast transportation, the above self owned property port of the company has great attraction to merchants and end consumers in Chengdu, Sichuan Province and some western regions. At the same time, the company will also accelerate the development of franchise chain projects and explore and extend Chengdu Fusen Noble-House Industrial Co.Ltd(002818) commercial value. And focus on “home demand” and “home consumption”, vigorously develop the Pan home industry.
Profit side: net profit margin increased significantly
On the profit side, in Q1 2022, the company achieved a gross profit margin of 72.05%, a year-on-year decrease of 2.2pct and a month on month increase of 3.81pct; The company achieved a net interest rate of 59.58%, an increase of 9.13pct year-on-year and 4.69pct month on month. On the expense side, in Q1 2022, the company’s expense rate during the period was 4.81%, an increase of 1.15pct year-on-year. Among them, the sales / management / financial expense rates were 0.38%, 4.45% and – 0.02% respectively, with year-on-year changes of 0.29, 0.63 and 0.23pct. The increase of financial expense rate is mainly due to the decrease of the average balance of bank deposits in the current period compared with the same period of last year, resulting in the decrease of deposit interest income. In addition, during the reporting period, the income from changes in fair value of the company increased by 100.89%, which is mainly due to the large fluctuation of fair value during the period of trading financial assets held in the same period of the previous period, and the income from changes in fair value recognized in the current period is negative. The trading financial assets have been disposed of and realized income in the previous year.
Investment advice
Stimulated by urbanization rate and income increase, household demand will continue to release. As a leader in Chengdu, the company has obvious first mover advantage and will continue to benefit. The company is positioned as a comprehensive home service provider and tries to expand its business around the layout of the industrial chain. We maintain the company’s profit forecast unchanged. The company’s operating revenue is RMB 1.725/19/2.074 billion from 2022 to 2024, and the company’s EPS is RMB 1.36/1.47/1.58 from 2022 to 2024, corresponding to the closing price of RMB 11.57/share on April 27, 2022, and PE is 8.52/7.89/7.3 times respectively, maintaining the company’s “buy” rating.
Risk tips
1) real estate sales were lower than expected, resulting in weak household demand. 2) Competition in the home retail market in Sichuan has intensified. 3) The company’s investment income is lower than expected.
