Main points of investment:
Events. The company released its quarterly report for 2017. During the reporting period, the company realized operating income of 82.37 million yuan, a decrease of 66.2% over the same period last year; net profit attributable to shareholders of listed companies was-15.51 million yuan; and basic earnings per share was-0.02 yuan.
In the first quarter of 2017, due to the decline in carryover, the company's revenue decreased by 66.2%, while the company's net profit decreased by an increase in the level of expenses. In the first quarter of 2017, the contracted area of the company's sales project was 5000 square meters, a decrease of 16.67% compared with the same period last year, and the signed amount was 28.26 million yuan. As of March 31, 2017, the company's total leased real estate area was 2328,000 square meters. In the first quarter of 2017, the company realized real estate rental income of 47.7215 million yuan, an increase of 25.91% over the same period last year. On March 25, 2017, Shanghai Juneng Bay Enterprise Service Co., Ltd., a wholly-owned grandson of the company, successfully won the right to use state-owned construction land in Unit 01-06 of Shibei High-tech Service Park, Jing'an District, Shanghai. On March 18, 2017, the company announced that the company had participated in subscribing for East China Construction Group Co., Ltd. (hereinafter referred to as "China Construction Group", stock code: 600629) issued shares to purchase assets and raise matching funds of 1381351 non-public offering shares, accounting for 0.32% of the total number of shares issued by China Construction Group.
Investment advice. Benefiting from the construction of data trading centers and scientific and technological innovation centers, equity investment is expected to grow rapidly. The company is located in the "boutique park" integrated operators, service integrators and investors, and has laid out 3.13 square kilometers of Shanghai Zhabei North High-tech Industrial Park and 5.2 square kilometers Nantong Science and Technology City Industrial Park. At present, the economy of Shibei High-tech Park is growing at a high rate of 30% a year, and the proportion of producer services in the park has exceeded 90%. The company holds a total of 1.18 million square meters of equity. At the same time, in the next five years, the north high-tech park in the city can develop 2.6 million square meters, and Nantong reserves 4200 mu of land. In recent years, the company has increased its investment in venture capital business, and its future development is promising. We expect the company's EPS to be 0.27 yuan and 0.35 yuan in 2017 and 2018. Considering that the company is within the scope of the Great Zhangjiang River and is expected to enjoy policies such as the construction of Shanghai Science and Technology Innovation Center and data Trading Center (with market uniqueness) in the future, and benefit from the merger of Jing'an and Zhabei, we give the company 80 times PE in 2017 and a "buy" rating corresponding to the target price of 21.30 yuan in the next six months.
Risk hint: the industry faces two major risks: interest rate hike and policy regulation.