Viewpoint Index
Abstract: Judging from the existing data, investment promotion still needs to continue to work hard.
Views Index In 2021, China Merchants Jiyu's total revenue exceeded 10 billion yuan for the first time, with revenue reaching 10.59 billion yuan, a year-on-year increase of 22.42%; total profit was 746 million yuan, an increase of 18.67% over the same period last year; net profit attributable to the parent company's owners was 512 million yuan, an increase of 17.25% over the same period last year.
As the largest property service company in the A-share market, China Merchants Jiyu has always been favored by investors. However, it cannot be ignored that while the scale continues to grow, profitability has always been poor. The latest financial report data of
shows that China Merchants Jiyu's comprehensive gross profit margin is 13.77%, which is at the end of the 54 listed property companies.
In response to this problem, China Merchants Jiyu began to actively try to build a "fertile soil Yunlin" business model in 2021, providing customers with comprehensive solutions for all business formats, full value chains, and full scenarios.
Judging from the existing data, investment promotion still needs to continue to work hard. The influence of related parties in
weakened, and the non-residential field has become the focus of competition
report shows that in 2021, the total managed area of China Merchants' Yu increased by 47% year-on-year to 281 million square meters, a net increase of about 90.132 million square meters compared with the same period last year, of which the managed area of non-residentials has increased significantly, with 70.8153 million square meters added, accounting for 78.57% of the total newly added area.
Data source: Corporate financial report, Opinion Index compiled
During the reporting period, the total managed area from China Merchants Shekou was 91 million square meters, accounting for only 32.38%; it mainly develops scale through market expansion, and its dependence on shareholders is relatively low.
As the development of the property service industry accelerates, competition in the residential field has become increasingly fierce. More and more property companies are willing to extend the service advantages of traditional residential buildings and explore new service formats. The non-residential field has a large market space, relatively little industry competition, high average property fee price, and the advantages of collection rate and price increase, becoming a key track for property companies to seize today.
is reflected in the data. China Merchants Jiyu's gross profit margin in 2021 was 6.57%, and the non-residential business gross profit margin was 13.6%. Or affected by this, we can see that China Merchants Jiyu has less active expansion in residential projects, but focuses on market expansion in non-residential and public construction fields.
Data source: Corporate financial report, Opinion Index compilation
business format composition, the proportion of non-residential properties in the area under management is 59%, and the business formats cover public, urban space, parks, schools, etc.
key indicator crane, after the completion of the three-year betting agreement, it is working hard for
. Although the total revenue scale of China Merchants Jiyu exceeded 10 billion mark, and the overall scale has steadily increased, according to industry data, the current average revenue growth of listed property companies is 42.31%, and China Merchants Jiyu is 22.64%, which has not yet reached the market average level.
Data source: Enterprise financial report, review of Viewpoint index
Since the successful reorganization in 2019, China Merchants Jiyu's net profit scale has grown steadily, with net profit attributable to shareholders from 2019 to 2021 being 286 million yuan, 435 million yuan and 513 million yuan respectively.
It is worth noting that the growth rate of net profit attributable to shareholders of China Merchants' Juyu slowed down in 2021 to 17.25%, while this indicator was 52.03% in 2020.
Data source: Enterprise financial report, viewpoint index compilation
In addition, the "Production Commitment and Compensation Agreement on Issuing Shares to Purchase Assets" signed by China Merchants Shekou and Shenzhen China Merchants Real Estate in 2019 stipulates that the net profit attributable to shareholders of China Merchants in the three years starting from 2019 must not be less than 159 million yuan, 189 million yuan and 215 million yuan respectively, corresponding to annual growth rates of 18.9% and 13.75%.
Data source: Corporate announcements, Opinion Index Organized
Or for the sake of insurance, China Merchants Jiyu acquired Shanghai Airlines Property and China Southern Airlines Property within 2021. The two companies' revenue in 2020 totaled about 345 million yuan, adding guarantees to their performance.
Views Index compiled the data from China Merchants Jiyu in the past three years and saw that the performance completion rates in 2019 and 2020 were 108.77% and 114.04% respectively, and the completion rate in 2021 has increased significantly.
may be affected by the pressure of previous performance commitments. China Merchants has little attempt to try new business forms, and its development focus is on basic business as its core, resulting in profitability always at the bottom of the industry.
As the performance growth in three years reaches the expected value, China Merchants Jiyu's various value-added businesses began to accelerate in 2021. However, judging from the current situation, it is still in the initial investment stage and there is still a lot of room for improvement in profitability.
revenue structure needs to be improved
Review of the data in the past few years, from 2016 to 2020, China Merchants Jiyu's overall gross profit margin was 20.18%, 21.23%, 19.64%, 18.26% and 13.61% respectively. Since the restructuring in 2019, the downward trend has been obvious.
combined with the company data that has been released so far, China Merchants Jiyu's gross profit margin is at the end of the industry, and the average gross profit margin of listed companies is 29.4%.
Data source: Corporate financial report, Opinion Index compilation
ROA is 4.5%, which is far behind the industry average of 14.51% and the maximum value of 36.53%.
Data source: Corporate financial report, Opinion Index compilation
Although investment promotion will focus on the non-residential field, its profitability is still lower than that of its peers. Disassembly the business structure and perhaps you can find the reasons from it.
From the perspective of business structure, China Merchants Jiyu focuses on three major sectors, namely property management business, asset management business, and other businesses. Among them, the basic property services of property management business account for 73.68% of the total revenue. Overall, the business of investment promotion is single, with the revenue contribution of various value-added services being weak and the degree of development is insufficient.
Data source: Enterprise financial report, viewpoint index
It should be noted that property management services, as the main business of investment promotion, are still insufficient in profitability, and the gross profit margin is only 11.1%.
Observation profits, China Merchants Jiyu Property Management Business's total revenue was 9.9 billion yuan, of which basic property management accounts for 76.55% of the total profit of the segment, while other platform value-added businesses and professional value-added businesses account for 1.14% and 22.37% of the profits.
Data source: Enterprise financial report, opinion index compilation
In fact, in recent years, many property companies have regarded value-added services as a new track and have increased their investment in related industries. The same is true for investment promotion, because value-added services do have room for imagination, but they also require early investment.
Data source: Enterprise financial report, Opinion index compilation
From the financial report, the decline in gross profit margin of China Merchants Jiyu value-added services may be related to the pursuit of scale growth.
Take the platform value-added services as an example. In 2021, China Merchants Jiyu platform value-added services achieved operating income of 266 million yuan, an increase of 493.96% from 44.7219 million yuan in the same period in 2020; operating costs were 253 million yuan, an increase of 524.48% from the same period in 2020. The growth rate of value-added service costs of
platform is higher than revenue, perhaps due to the upfront cost investment required for business acceleration, which has halved the gross profit margin from 9.5% last year to 4.85%. It can be believed that to a certain extent, the growth of China Merchants' surplus revenue is indeed at the expense of profits.
Data source: Corporate financial report, prospectus, opinion index compilation
At the same time, since the investment promotion Jiyu various value-added services are still in the early cost investment stage, they have little impact on the improvement of corporate profitability. Generally speaking, the high gross profit margin and strong profitability of enterprise value-added services can make a lot of polishing the overall financial resources.
Take Wanwu Cloud as an example. The gross profit margin of basic property services in 2021 was 11.1%, which is the same as the gross profit margin of China Merchants Jiyu Property Management Services. However, after being polished by various value-added services, the comprehensive gross profit margin rose to 17%.
However, due to the low gross profit margin of various value-added services and the overall scale is not high, the profit contributed by China Merchants Jiyu is limited, which is not very helpful to the overall level. The final comprehensive gross profit margin is 13%.
The capital market performance is acceptable, and the valuation may be pulled back in the future
Due to the impact of the real estate industry and external factors, the valuation of most property service companies has been pulling back, and the market value has fallen compared with the beginning of the year.
Data source: Wind, Guandian Index compiled
China Merchants Jiyu has the advantage of strong cash flow and has the advantage of "national team". The capital market performance is stable compared with some private enterprises. The total market value fell by 5% from the beginning of the year, which is better than some property companies with better performance than China Merchants Jiyu.
data source: Wind, compilation of Guandian Index
price-to-earnings ratio is also similar. As of April 15, China Merchants Jiyu's price-to-earnings ratio was 39.53, ranking second among all listed property companies.
总体而言，当下外部环境尚不明朗，市场更为看良好母公司发展稳定的物业企业。但随着市场趋于稳定，企业内生增长以及空间增值潜力的长期发展逻辑保持不变，企业估值或会进一步修复。
