Events. In the first three quarters, the company realized operating income of 1.07 billion yuan, an increase of 7.28 times compared with the same period last year, net profit belonging to shareholders of listed companies was 164 million yuan, and basic earnings per share was 0.21 yuan.
Revenue and net profit increased significantly in the first three quarters of 2016, driven by a sharp increase in carryover and a decline in expense levels. In July 2016, the company contributed 200 million yuan to participate in the establishment of an investment fund-Shanghai Volcano Phase I Equity Investment Partnership (limited partnership). According to the company's 2015 annual report, the total construction surface of the company's construction and new projects will reach 500000 square meters in 2016.
Investment advice. Investment suggestion: benefit from the construction of data trading center and science and technology innovation center, 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 can develop 2.6 million square meters, and Nantong has a reserve of 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 0.31 yuan and 0.39 yuan in 2016 and 2017. Considering that the company is within the scope of the Great Zhangjiang River and is expected to enjoy favorable 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 90 times PE in 2016, with a "buy" rating corresponding to the target price of 27.9 yuan in the next six months.
Risk hint: the industry faces two major risks: interest rate hike and policy regulation.
