\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 325 Huafa Industrial Co.Ltd.Zhuhai(600325) )
Double digit rapid profit growth: in the first quarter of 2022, the company achieved an operating revenue of 8.088 billion yuan, a year-on-year increase of 26.97%, and a net profit attributable to the parent company of 711 million yuan, a year-on-year increase of 28.35%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 710 million yuan, a year-on-year increase of 53.31%; The basic earnings per share was 0.32 yuan, a year-on-year increase of 28.00%. Although the gross profit margin of the company’s current settlement projects has decreased, 7.7 percentage points lower than that in the first quarter of 2021, the company is rich in settlement resources, and the proportion of equity in the remaining settlement projects has increased, which can still ensure the steady growth of the company’s performance.
Sales performance is better than the big market: in the first quarter of 2022, the company achieved a sales amount of 23.19 billion yuan, a year-on-year decrease of 19.45%, a sales area of 748000 square meters, a year-on-year decrease of 33.21%, and the average sales decline of the top 100 real estate enterprises in the first quarter of the same period was 47.1%. The downward range of the company is significantly smaller than that of the top 100 real estate enterprises, and the sales performance is significantly better than the big market. The sales ranking ranks in the top 20 and ranks 17th, showing the company’s countercyclical adjustment ability and development toughness. By the end of 2021, the company’s value of goods accounted for 18%, 56% and 26% in the first, second and third tier cities respectively. The top five value reserve cities of the company, except Shaoxing, are first tier or strong second tier cities. The population has maintained a net inflow for a long time, forming a strong support for the real estate market. In the process of market recovery, the demand of core cities is more vigorous and will take the lead in recovering. The company will also benefit from the layout of high-energy soil storage and rich value reserves, take the lead in benefiting from the market recovery and maintain stable sales and profits.
Deep cultivation of core areas will take the lead in benefiting from market recovery in the future: since 2020, the company has changed its layout of land acquisition, focused its strategy on deep cultivation areas, concentrated in the first and second tier cities, and the proportion of the third tier cities has dropped. In the first quarter, the company added 62 mu of land on the south side of Huzhong Road, Doumen District, Zhuhai, with a land transfer area of 41400 square meters. The nature of the land is residential land, with a plot ratio of 2.10. The company has 100% equity and focused on the first tier cities, Participated in bidding for multiple plots in the first round of centralized land supply in Shenzhen and Shanghai.
The pressure of debt repayment is small, and the financing channels remain unobstructed: at present, the company has no pressure on cashing US dollar bonds. There are 41 existing domestic bonds, with a stock scale of 34.371 billion yuan. Nine bonds will be repaid in 2022, with an annual interest rate of 3.72% – 5.78%, and a balance of 8.94 billion yuan. The pressure of debt repayment is small. At the same time, as a local leading state-owned enterprise, the company has rich financing means, large financing space and obvious advantages in the stage of market tightening. Since 2022, the company has issued US $200 million bonds, newly registered 10 billion medium-term notes, issued 3.501 billion yuan of asset-backed special bonds, 630 million yuan ABN and planned to issue 690 million yuan of corporate bonds. It has successfully ranked among the issuance of 10 billion housing rental REITs products, and the financing channels have been steadily expanded.
It is estimated that the company’s EPS from 2022 to 2024 will be 1.66/1.81/2.03 yuan / share. With the company’s previous sales projects successively entering the settlement cycle, other businesses remain stable, and the company’s revenue scale is expected to increase. Maintain the company’s buy rating, with a target price of 12.79 yuan / share.
Risk factors: the tightening or relaxation of real estate regulation and control policies is less than expected, the decline of sales in the real estate industry is more than expected, and the expansion of the company’s real estate development business and other businesses is less than expected
