\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 325 Huafa Industrial Co.Ltd.Zhuhai(600325) )
Key investment points
Recommendation logic: 1) the sales scale has made steady progress, 21q1 ranked 17th against the trend, the premium of high-quality products has been increased, and the average sales price is in the forefront of the industry; 2) Finance continued to optimize, the three red lines turned green after reaching the standard, and the financing cost continued to drop to 5.8%; 3) The business expansion of the two wings has accelerated, the product ecosystem covering commercial real estate and brand management has become more mature, and the upstream and downstream industrial chains have achieved coordinated development.
Operating performance rose against the trend and financial continued to optimize. In 2021, the company’s operating revenue was 51.4 billion yuan, a year-on-year increase of 0.8%; The net profit attributable to the parent company was 3.19 billion yuan, a year-on-year increase of 10.1%. In 2022q1, the operating revenue was 8.1 billion yuan, with a year-on-year increase of 27.0%, and the net profit attributable to the parent company was 7.1%, with a year-on-year increase of 28.4%. By the end of 2021, “three red lines turn green”, the net asset liability ratio has decreased to 67.1%, the withholding asset liability ratio has decreased to 80.3%, and the cash short debt ratio has increased to 1.84; The total interest bearing debt was 136.8 billion yuan, the structure was significantly optimized, and the short-term debt was 27.5 billion yuan, a sharp decrease of about 40%. In 2021, the company’s annual collection amount was 70.7 billion yuan, a year-on-year increase of 32.3%; Financing channels have been continuously innovated, and the financing cost will be reduced to 5.8% in 2021.
Sales grew steadily, land reserves were sufficient, and premium was raised for high-quality products. In 2021, under the condition of market downturn, the company achieved a total sales area of 4.69 million square meters, a year-on-year increase of – 7%; The sales amount was 121.9 billion yuan, an increase of 1.2% year-on-year. In 2022, the sales amount of Q1 was 23.2 billion yuan, ranking 17th against the trend. The company’s excellent + product system has been upgraded iteratively to increase the brand premium. The average sales price is 27000 yuan / m2, which is in the forefront of the industry. By the end of 2021, the construction area of land reserve is 5.44 million square meters, and the area under construction is 15.42 million square meters, which can meet the needs of medium and long-term development. At present, the company has been stationed in 47 major cities in China. The proportion of soil storage in the first and second tier cities exceeds 90%, and the soil storage resources are high-quality.
The coordinated development of diversified businesses and the accelerated take-off of “one core and two wings”. With the residential business as the core, the company continues to expand the business operation and the two wings of the upstream and downstream industrial chain. In 2021, six key projects in Zhuhai, Taicang, Weihai, Zhongshan, Wuhan and other cities were opened, and the layout of commercial real estate was accelerated; The three self operated business lines of yuechao, Huashang department store and HUAFA aotemei fitness center have been gradually formed. On the basis of maintaining the steady growth of the main business, the upstream and downstream industrial chain has achieved coordinated development with the main business, and its subsidiaries have continuously achieved business breakthroughs.
Profit forecast and investment suggestions. It is estimated that the compound growth rate of the company’s net profit attributable to the parent company from 2022 to 2024 will be 9.7%. Considering the steady growth of the company’s operating revenue and financial stability, the company will be given 7 times PE in 2022, corresponding to the target price of 11.90 yuan, and maintain the “buy” rating.
Risk tips: performance settlement is less than expected, policy regulation risk, etc.
