\u3000\u3 Ping An Bank Co.Ltd(000001) 914 China Merchants Property Operation & Service Co.Ltd(001914) )
Event: the company disclosed that in the first quarterly report of 2022, the operating revenue in Q1 of 22 was 2.537 billion yuan, a year-on-year increase of 14.75%; The net profit attributable to the parent company was 145 million yuan, a year-on-year increase of 24.35%; The basic earnings per share was 0.14 yuan / share, with a year-on-year increase of 24.36%.
Q1’s performance grew steadily, and non housing driven profit recovery. The company achieved a revenue of 2.537 billion yuan in the first quarter, a year-on-year increase of 14.75%; The net profit attributable to the parent company was 145 million yuan, a year-on-year increase of 24.35%. Q1 property management business realized a revenue of 2.403 billion yuan, a year-on-year increase of 17.59%, mainly due to the growth of basic property management and platform value-added business. The revenue of basic property management and platform value-added services was 1.990 billion yuan and 59 million yuan respectively, with a year-on-year increase of 15.42% and 422.85% (the revenue of jiajiahui mall increased sharply). The gross profit margin of the company was 13.30%, with a slight increase of 0.09pct driven by non residential and asset management business. The gross profit margin of infrastructure management was 11.07%, an increase of 2.11pct over the same period last year; Among them, the gross profit margins of residential and non residential businesses were 1.50% and 15.23%, respectively – 2.0pct and + 3.9pct compared with the same period last year. The operating cost of residential business increased rapidly affected by the epidemic; The gross profit margin of asset management business was 67.15%, an increase of 5.23 PCT over the same period last year. In terms of expense rate, the sales and financial rates have improved, reducing 0.10pct and 0.48pct respectively. The cost optimization superposition reduced the loss of legacy development projects, and the company’s net interest rate increased by 0.82pct to 5.69% compared with Q1 in 21 years.
Market expansion continues to deepen, and joint ventures and cooperation seek win-win results. The newly signed annual contract amount of the company in the first quarter was 730 million yuan, an increase of 26% year-on-year. The main expansion projects include Alibaba IDC data center, Zte Corporation(000063) Nanyan base, Shenzhen Hospital of Guangzhou University of traditional Chinese medicine, etc., and continue to expand market share in public, parks, hospitals and other fields. By the end of March 22, the number of projects under the management of the company had reached 1754, covering more than 100 cities across the country, with a management area of 291 million square meters, of which the residential and non residential management areas were divided into 116 million and 175 million square meters, accounting for 39.9% and 60.1% respectively. The expansion mode continues to deepen, “total to total” focuses on IFM comprehensive facilities management business, and the joint venture focuses on multi business formats and urban space services. For example, the newly established Jinan culture and tourism joint venture has a number of business offices under negotiation.
The core areas will continue to be cultivated deeply and diversified business forms will develop in an all-round way. By the end of the first quarter of 2012, the company’s property management business income was 2.403 billion yuan. From a subregional perspective, the top five regions of property management business income were Shenzhen, Guangdong (except Shenzhen), Jiangsu, Shandong and Sichuan, with a total revenue of 1.368 billion yuan, accounting for 53.92% of the total revenue; The total management area reached 170 million square meters, accounting for 58.42% of the total management area, and the contribution rate of core regions remained high. In terms of business types, the total revenue of non residential business types in the first quarter was 1.388 billion yuan, accounting for 54.71% of the total revenue; Among them, office, park, government, public, school, business, urban space and other sub circuits account for 20.2%, 8.3%, 7.5%, 7.4%, 5.3%, 2.6% and 3.3% respectively. The non residential business with extensive and diversified layout has strong performance support.
Accelerate the separation of light and heavy assets and meet breakthroughs in professional services. The company accelerated the establishment of asset light operation platform, and completed the signing of the agreement on the transfer of equity of Shenzhen AVIC City, Kunming AVIC and Ganzhou Jiufang companies to China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) subordinate companies of the controlling shareholder in February 22, making substantial progress in the separation of light and heavy assets. In April 2022, the company announced that the subsidiary returned the land use right of Tianjin project plot, and the original book inventory value was 380 million yuan, including 58 million yuan of land cost and 322 million yuan of construction in progress. The company has made full impairment provision for the inventory according to the actual situation.
In terms of specialized value-added services, many subsidiaries have strengthened market expansion and achieved breakthroughs in various fields, such as building technology winning the bid for the intelligent project of Foshan Nanhai Fengrui residence project. During the period, professional value-added services achieved revenue of 355 million yuan, a year-on-year increase of 14.91%, accounting for 14.0% of the total revenue. Among them, construction technology services and facility management services with high gross profit level contribute 42.53% of professional service revenue, which continues to improve compared with the same period last year, which is a potential growth point of value-added service performance in the future.
Investment suggestion: backed by two central enterprises, China Merchants Group and AVIC group, the company has strong advantages in the expansion of non residential projects, which has effectively driven the improvement of profitability. In the first quarter of 2022, the number of projects under management increased steadily, the performance of professional services was bright, and the separation of severity and severity was further. At the same time, the profitability of the company’s asset management services was considerable, the projects under management were high-quality and operated well. We maintain the original forecast. It is estimated that the net profit in 22-24 years will be 722, 939 and 1141 million yuan respectively, the corresponding EPS will be 0.68 yuan, 0.89 yuan and 1.08 yuan respectively, and the corresponding PE will be 26.59x, 20.45x and 16.82x respectively, maintaining the “buy” rating.
Risk warning: the decline of profit exceeds the expectation, the business expansion is less than the expectation, and the inventory impairment is large
