\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 383 Gemdale Corporation(600383) )
Event: Recently, the company released its 2021 annual report. In 2021, the company achieved an operating revenue of 99.23 billion yuan, an increase of 18.2% year-on-year; The net profit attributable to the parent company was 9.41 billion yuan, a year-on-year decrease of 9.5%; The gross profit margin was 21.2%, a year-on-year decrease of 11.7pct.
The decline of gross profit margin, the provision for impairment and the increase of expense rate lead to the pressure on profits. In 2021, the company achieved an operating revenue of 99.23 billion yuan, an increase of 18.2% year-on-year; The net profit attributable to the parent company was 9.41 billion yuan, a year-on-year decrease of 9.5%; The gross profit margin was 21.2%, a year-on-year decrease of 11.7pct, of which the gross profit margin of real estate development business was 19.7%, a year-on-year decrease of 13.9pct; Roe was 15.6%, a year-on-year decrease of 3.0pct. The main reasons for this year’s increase in income rather than profit are as follows: 1) affected by the overall downturn of the real estate industry, the settlement scale of real estate projects has increased, the land cost of carried forward income projects is high, and the gross profit margin of real estate development business is 19.65%, a year-on-year decrease of 13.9pct; 2) The asset impairment loss increased by 570 million yuan to 1.21 billion yuan year-on-year, reducing the net profit attributable to the parent company; 3) Affected by the upward rate of sales, management, finance and other expenses, the expense rate during the sales period was 9.3%, with a year-on-year increase of 2.2pct.
Sales increased against the trend, and the deep ploughing strategy achieved remarkable results. In 2021, the company achieved a total sales area of 13.77 million square meters, with a year-on-year increase of 15.25%. The sales amount was 286.71 billion yuan, with a year-on-year increase of 18.15%. The annual average sales price was 2082135 yuan / square meter, with a year-on-year increase of 2.51%. The sales situation increased against the trend, and the growth rate was in the forefront of the top 20 real estate enterprises. The company’s annual sales volume ranked 11th in the list of Kerry, up 2 places from the previous year. Since the market was cold in the second half of 2021, the company has flexibly grasped the supply rhythm and benefited from good brand strength, Gemdale Corporation(600383) has become one of the few real estate enterprises to achieve the sales target at the beginning of the year. Under the guidance of the urban intensive cultivation strategy, the market share of the city where the company is located has been further steadily increased, ranking among the top ten in the market of more than ten cities in China.
Land acquisition slowed slightly, focusing on the first and second tier core cities and improving land quality. In 2021, the company obtained 111 new projects, with a total new land reserve of about 16.36 million square meters, a year-on-year decrease of 1.3%, including equity reserve of about 6.48 million square meters and land acquisition and sales area ratio of 118.8%; The total investment is about 130.9 billion yuan, a year-on-year decrease of 3%, and the equity investment is about 52.3 billion yuan, accounting for 40%, a decrease of 10 PCT compared with 20 years. The new construction area is about 18.43 million square meters, an increase of 16% year-on-year. The completed area is about 15.34 million square meters, an increase of 39% year-on-year. The company’s investment in the first and second tier cities accounted for 65%, of which the investment in the first tier cities with better market liquidity and higher security increased significantly to 34%, the investment layout was more concentrated, and the quality of land acquisition was significantly improved, providing guarantee for subsequent expansion.
Jindi intelligent service has created a “three horizontal and nine vertical” service matrix, and the agent construction business has been developing continuously. By the end of 2021, the contract management area of Jindi intelligent service property has exceeded 330 million square meters, of which the proportion of external expansion is as high as 71%, and the proportion of non residential business is as high as 15%. During the year, the main business of “three horizontals” developed steadily, and the business of “nine verticals” continued to upgrade. There are about 3800 intelligent technology service communities such as Internet SaaS online services, covering more than 100 large and medium-sized cities. During the reporting period, it was ranked first among the top 100 leading enterprises in service quality of China’s property services for the tenth time. In addition, the company’s agent construction business has been distributed in more than 30 cities across the country, with a cumulative development and management area of more than 15 million square meters, a cumulative value of more than 88 billion residential projects, an investment scale of more than 40 billion commercial projects, and a cumulative government public construction area of more than 4 million square meters.
Financial stability, prominent financing advantages, and actively supplement funds for long-term development. Excluding the financing cost of limited enterprises, which is 1256.6 billion yuan, the average capital collection ratio of the company is still in the stable level of 2021.6% after excluding the financing cost of limited enterprises, and the average capital collection ratio is 1256.2%, which is still in the low level of 2021.6% after excluding the financing cost of limited enterprises. The company seized the financing window period, actively supplemented funds, and successively issued three phases of medium-term notes in November, December and February of 21, with the issuance scale of 1.5 billion, 1.5 billion and 1.7 billion respectively, and the issuance interest rates of 4.17%, 4.04% and 3.58% respectively. The financing cost gradually decreased.
Investment suggestions: the company’s sales grew against the trend, its profitability was gradually restored, its financing advantages were prominent, its financial situation was stable and stable, its business blossomed in many aspects, and the property management sector brought new growth points. We expect the company’s earnings per share from 2022 to 2023 to be 2.26 yuan / share and 2.49 yuan / share respectively. Calculated by the closing price of 13.19 yuan on April 27, the corresponding P / E ratios are 5.8 times and 5.3 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.
