The settlement income decreased, and the return net profit remained relatively stable.
Nanjing Hi-Tech released its quarterly report for 2022. From January to September, the company realized operating income of 1.952 billion yuan, down 53.4% from the same period last year. Net profit from home was 1.891 billion yuan, down 3.4% from the same period last year. Basic earnings per share was 1.093 yuan, down 3.4% from the same period last year. Settlement gross profit margin was 26.6%, up 4.9% from the same period last year. As of 2022Q3, the company's contract debt is 5.47 billion yuan, and the net cash flow generated by operating activities is-1.033 billion yuan (2021Q3-173 million yuan). As a deep ploughing enterprise in Nanjing, the company has strong development advantages, the strength of land acquisition has been improved to ensure the follow-up sales scale, at the same time, the listing process of investment projects has been promoted in an orderly manner, and the contribution of investment income is expected to continue to improve. We keep the profit forecast unchanged. From 2022 to 2024, the net profit of Nanjing Hi-Tech is estimated to be 24.7,27.6 and 3.09 billion yuan respectively, and the EPS is 1.43,1.60,1.78 yuan respectively. The current stock price corresponds to the PE valuation of 4.4,3.9,3.5 times, maintaining the "buy" rating.
The sales performance declined compared with the same period last year, and the investment was relatively positive.
Affected by the sluggish sales in Nanjing market and the epidemic situation, the company realized the contract sales area of 12,000 square meters from January to September, down 65.44% from the same period last year; the contract sales amount was 496 million yuan, down 64.37% from the same period last year; and the newly started area was 87300, down 59.6% from the same period last year. The completed area decreased by 43.43%, and there were no new completed projects in the third quarter. The company is more active in taking land, adding two new commercial housing project reserves in Nanjing from January to September, with a total construction area of 138,000 square meters, with a land amount of 2.87 billion yuan, with a stake of 90% and 55% respectively. As of 2022Q3, the company has leased a total real estate area of 13.52 million square meters, including 43 million commercial projects, with a total rental income of 16 million yuan. Nanjing, as the core city of the Yangtze River Delta urban agglomeration, the overall market is relatively sound, the company Ziyao Xingyuan, Zilin Jingyuan two projects are expected to open at the end of 2022, continue to contribute to the company's development business performance, future revenue is expected to be more stable.
The investment income remains stable, and the core business status is gradually emerging.
The company's equity investment business implements the strategy of steady development, focuses on the field of scientific and technological innovation, selects investment targets, and has a wide layout. The investment income from January to September is 2.001 billion yuan, down 1.0% from the same period last year, and remains relatively stable. in the case of a substantial reduction in the settlement income of the development business, it will become the main source of profits of the company, and the future investment income will further become an important part of the company's core value.
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.
