The carry-over scale declined, and Guimu's net profit continued to grow. Maintaining the “buy” rating, Zhang Jiang Hi-Tech released the 2022 annual report and the first quarter report of 2023. The company achieved total operating revenue of 1,907 million yuan in 2022, a decrease of 9.08% over the previous year; Guimu's net profit was 822 million yuan, an increase of 11.02% over the previous year. The company achieved total revenue of 248 million yuan in 2023Q1, a year-on-year decrease of 78.87%; it achieved net profit of 198 million yuan to the mother, an increase of 186.85% over the previous year. The decline in the company's revenue was mainly due to the decline in real estate sales business during the period, and the sharp increase in net profit to the mother was due to a sharp rise in the fair value of financial assets held by the company measured at fair value and whose changes were included in current profit and loss. Affected by the carry-over cycle of the company's park sales business, we lowered the 2023-2024 and added the 2025 profit forecast. The company's net profit for 2023-2025 is estimated to be 860, 9.46 and 1,098 million yuan (the original value for 2023-2024 was 1,186 million yuan, 1,433 million yuan), corresponding to the 2023-2025 EPS of 0.56, 0.61, 0.71 yuan, and the current stock price corresponding to PE is 27.3, 24.8, 21.4 times. Maintains the “buy” rating given the company's state-owned asset background and multiple advantages that contribute to revenue growth.
Adhere to industry leadership, rental income is rising steadily
In 2022, the company completed a domestic registered capital of 7.118 billion yuan, with actual foreign investment of 884 million US dollars. It built the Shanghai Integrated Circuit Design Industrial Park at the Zhangjiang Power Collection Port and jointly built an integrated circuit material park with Zhou Pu. In 2022, the company achieved a sales area of 33,900 square meters, a sales amount of 1,052 million yuan, and carried over the entire year. The company continues to speed up carrier construction. By the end of 2022, the total construction area under construction was 1,968 million square meters, the total construction area of newly started projects during the year was 1 million square meters, and the total land storage planning area was 208,700 square meters. The company's leasable area in 2022 was 1,331 million square meters, achieving rental revenue of 84 million yuan, a decrease of 4.84% over the previous year; the 2023Q1 leasable area was 1,3515 million square meters, achieving rental revenue of 240 million yuan, an increase of 8.54% over the previous year, and rental revenue was rising steadily.
Continue to do a good job in industrial investment and innovation incubation
By the end of 2022, the company had invested 8.115 billion yuan in industry, including 52 direct investment projects, with an investment amount of 2,070 billion yuan; 24 sub-funds participated in the investment and pledged 6.045 billion yuan, leveraging a capital scale of 54.914 billion yuan. The market performance of the invested projects is outstanding. Weijie Chuangxin, Inji Chip, Saiwei Microelectronics, Yuncong Technology, Yifang Biotech, and Lianying Medical are all listed on the Science and Technology Innovation Board.
Risk warning: The risk of declining sales in the real estate industry, business risk caused by policy adjustments, risk of enterprise operation.