Performance rebounded significantly and profitability remained stable. 2017H1 achieved an operating income of 440 million yuan, down 22.6% from the same period last year, and a net profit of 68.736 million yuan, down 6.7% from the same period last year. The company suffered a loss in the first quarter due to the impact of the Spring Festival and settlement progress, and the pace of project rental and sale resumed in the second quarter. At the same time, the projects sold last year gradually entered the settlement cycle, and the performance recovered quickly. The company's gross profit margin in the first half of 2017 was 37.2%, down 5 percentage points from the same period last year, mainly due to an increase in the proportion of revenue from the company's leasing business, while the gross profit margin of the leasing business was lower; the net profit margin was 15.8%, slightly higher than the same period last year.
The proportion of rental income increased rapidly, and the amount of accounts received in advance reached an all-time high. 2017H1 realized real estate sales revenue of 290 million yuan, down 33% from the same period last year, and realized real estate leasing income of 120 million yuan, an increase of 11% over the same period last year. The proportion of rental income has risen to nearly 30%, and the industry carrier operation mode continues to change to leasing.
In addition, the company's 2017H1 accounts received in advance reached 1.16 billion yuan, a record high, leaving enough room for the performance release of the next 1-2 years.
Increase the intensity of industrial investment, "real estate + investment" two-wheel drive pattern looms. In the first half of 2017, the company increased its industrial investment and participated in subscribing for the fixed increase project of East China Construction Group. At the same time, the volcanic Stone Equity Investment Fund established by equity participation has begun to invest abroad. The company's 2017H1 investment income is 46 million yuan, accounting for 40% of the total profit. The "real estate + investment" two-wheel drive pattern has been faintly seen.
Focus on big data to create an innovative industry ecosystem. Shibei High-tech Park has introduced heavyweight enterprises of big data industry, including Tide Group, Dr. Peng, Shanghai Dataport and so on. At present, more than 150 big data cloud computing enterprises have settled in the park. The demonstration effect of leading enterprises and the agglomeration effect of industry are gradually emerging. In the future, Shibei high-tech will gradually become synonymous with the industrial development of Shanghai big data.
Financial forecasts and investment suggestions
Maintain the overweight rating and maintain the target price of 10.54 yuan. We predict that the EPS of the company from 2017 to 2019 will be 0.17 soybean 0.210.25 yuan (originally 0.15max 0.20amp 0.25 yuan). Using the comparable Company Law, the comparable company's PE in 2017 was 62X, corresponding to the target price of 10.54 yuan, maintaining the overweight rating.
Risk hint
The project sales or rental rate of the company is lower than expected.
The return on investment in start-ups is lower than expected.