The real estate business is deeply cultivated in Nanjing, and the investment business is actively distributed.
The company insists on ploughing the regional market and has gradually formed three major business sectors: real estate, municipal and equity investment.
Benefiting from the supply-side reform of the industry, the company has improved its land acquisition efforts in 2022 to ensure the follow-up sales scale; the company's equity investment business has continued to develop, the listing process of a number of investment projects has been promoted in an orderly manner, and the contribution of investment income performance is expected to continue to improve; the company's municipal business has developed steadily. We expect the company's return net profit from 2022 to 2024 to be 24.7,27.6 and 3.09 billion yuan respectively, and the current share price is valued at 4.8,4.3,3.8 times for Pamp E.
For the first time, coverage gives a "buy" rating.
Deep ploughing regional market, steady development of real estate and municipal business
Nanjing Hi-Tech ploughs the Nanjing market, real estate and municipal business insist on creating quality products and services, and continue to develop the market. In 2021, the operating income of the company's real estate development and sales business was 3.904 billion yuan, an increase of 79.85% over the same period last year. The revenue from municipal infrastructure construction reached 580 million yuan, an increase of 114.58 percent over the same period last year, with a compound growth rate of 17.70 percent in the past five years. In 2022, the company actively acquired land and won two plots in Nanjing in 2.87 billion, laying a solid foundation for the company's performance in the next few years.
Investment business has shifted to the field of scientific and technological innovation, and the status of core business has gradually shown that equity investment business has gradually shifted from the original financial and real estate industry to scientific and technological innovation fields such as medical and health care and information technology, taking into account environmental protection technology, new infrastructure, new materials and other fields, with a wide range of business layout. The cumulative investment income of the company has exceeded 11 billion yuan, and the investment income in 2021 has reached 2.333 billion yuan, reaching a new high after a substantial increase in 2019. The future investment income will be further strengthened and become an important part of the company's core value.
The profit level has maintained continuous growth for 19 years, the profitability has improved steadily, the company's operating performance has continued to improve, and the level of net profit has reached a new high. In 2021, the net profit of the company belonging to the owner of the parent company was 2.352 billion yuan, an increase of 16.68% over the same period last year, mainly due to the increase in investment income recognized by long-term equity investment in 2021. So far, the company's net profit has been growing for 19 consecutive years. Profitability has improved steadily.
Risk hint: the recovery of Nanjing market sales is not as expected, and the development of the company's equity investment business is not as expected.
