Haitai Development recently released its 2007 semi-annual report: the company realized main business income of 270 million yuan, an increase of 8.99% over the same period last year; net profit of 23.07 million yuan, a decrease of 7.03% over the same period last year; and earnings per share of 0.089 yuan.
The land reserve is rich. During the reporting period, the company added 187800 square meters of land reserve. Up to now, the company owns nearly 1000 mu of project land reserve, which is distributed in the Haitai green industrial base (outer ring). The development of the existing land reserve can at least ensure the steady growth of the company's performance in the next three years.
Some progress has been made in incubation services. As a listed company with incubator construction and operation as its main business, the company promotes industrial real estate and industrial investment through professional incubation services. During the reporting period, among the more than 900 enterprises registered in Haitai Incubator, 40 small and medium-sized high-tech enterprises with high growth potential were selected and included in the scope of the growth plan of Haitai Incubator's technology-based small and medium-sized enterprises. it has created conditions for the future breakthrough of incubation business.
Benefit from the development of Tianjin Binhai High-tech Zone. Prior to this, the company's major shareholder Haitai Holdings Group and CNOOC Base Group have signed a cooperation agreement for the construction of Binhai High-tech Zone, and jointly funded the establishment of Binhai High-tech Zone Development and Construction Co., Ltd. the land development area of the Binhai High-tech Zone is about 25 square kilometers. It is believed that with the deepening of the development of the Binhai High-tech Zone, it is expected that the Group will inject the development land into the listed companies in the future, and the listed companies will also make full use of the experience of industrial real estate development and entrepreneurial incubation services accumulated for many years. Actively participate in the development and construction of Binhai high-tech zone, so as to expand more development space for the company.
Additional issuance is conducive to the long-term development of the company. The company plans to issue no more than 120 million shares to raise funds for the investment and development of "Haitai Green Industry Base Phase III Project" and "High-end Residential Project in Laoshi County", which will be conditionally approved on July 5 this year. The smooth implementation of the additional issuance will help to improve the level of Haitai industrial real estate development and lay a solid foundation for the company's long-term development.
Risk hint. The adjustment of the national macro policy will bring risks to the company's science and technology park and incubator development industry; the company's pre-project processing schedule has a certain degree of uncertainty, which may affect the speed of project development and sales.
Maintain the "overweight" rating. Combined with the development progress of the company's industrial real estate projects and the steady growth of other businesses, we maintain our previous forecasts for the company's EPS of 0.18 yuan and 0.38 yuan (after equity dilution) in 2007 and 2008, respectively. Considering the strong development ability of the company's industrial real estate, the existing rich land reserve and the good expectation of benefiting from the development and construction of Binhai New area, we believe that the company's future performance will be steady and sustainable growth. Profitability will also be improved, maintaining the company's "overweight" rating.