Main points of investment:
Event one. The company publishes its 2019 annual report. During the reporting period, the company's total revenue reached 2.93 billion yuan, down 14.43% from the same period last year. Of this total, the company's operating income was 2.909 billion yuan, down 14.41% from the same period last year; the net profit belonging to shareholders of listed companies was 1.842 billion yuan, an increase of 92.21% over the same period last year. The company plans to pay a cash dividend of 4.5 yuan (including tax) for every 10 shares to all shareholders in 2019.
Event two. The company publishes its quarterly report for 2020. During the reporting period, the company's total revenue reached 749 million yuan, an increase of 132.06% over the same period last year. Of this total, the company realized operating income of 746 million yuan, an increase of 134.36% over the same period last year, and the net profit belonging to shareholders of listed companies was 590 million yuan, down 34.69% from the same period last year.
In 2019, after the implementation of the new financial instruments standards, the company made changes to relevant accounting policies and accounting methods. driven by the increase in the fair value change income of transactional financial assets and other non-current financial assets and the investment income recognized by long-term equity investment calculated according to the equity method, the company's homing net profit increased by 92.21% compared with the same period last year. In 2019, the company achieved a total revenue of 2.93 billion yuan. Of this total, 1.887 billion yuan was earned from real estate development and sales, 474 million yuan from municipal infrastructure construction, 331 million yuan from park management services, and 214 million yuan from drug sales. According to the company's 2019 annual report disclosed: (1) in 2019, Ziwei Hall, Rongjing and other sales amount of 2.568 billion yuan. Add Maigaoqiao G41 plot.
(2) the company realized the contract sales of 2.575 billion yuan, an increase of 10.96% over the same period last year. The new construction area was 62000 square meters, a decrease of 76.14% over the same period last year. (3) the company has invested in 7 new projects in health care, IT big data and new materials, such as Ellis, Rendu Biology, Zhengya Dentistry, Nureit, Yi Whale Jet, etc., to complete the additional investment in Boko Information and Jianpeng Medicine. Invest 698 million yuan to set up the second phase of Xinjun Innovation Fund. The company contributed 394 million yuan to increase its stake in Bank of Nanjing 48.6337 million shares. During the year, some projects, such as Anyuan Technology and Xinshijing, were withdrawn at a premium. (4) in 2019, the company's investment income was 1.406 billion yuan, an increase of 134.94% over the same period last year, and the fair value change income was 663 million yuan. In 2019, the company's outbound investment totaled 616 million yuan, an increase of 135.19% over the same period last year.
Investment advice. Equity investment relies on four major investment platforms, "better than the market" rating. The company is mainly engaged in real estate and municipal business, equity investment business. The company continues to improve the system construction of the four major investment platforms of "Nanjing Hi-Tech, Hi-Tech Innovation, Hi-Tech loan and Hi-Tech Xinjun", focusing on equity investment in strategic emerging industries such as medicine and health, artificial intelligence and so on. We estimate that the EPS of the company in 2020 and 2021 will be 1.18 yuan and 1.28 yuan respectively. With reference to the average valuation of the relevant comparable listed companies in 2020, the company is given 9-11 times dynamic PE in 2020, and the corresponding reasonable value range is 10.62-12.98 yuan, maintaining the company's "better than the big market" rating.
Risk hint: the company faces the risk of raising interest rates and policy regulation, as well as the risk of unsuccessful transformation; the investment income gained by the company's stake in the Bank of Nanjing may decline because the profit of the Bank of Nanjing falls short of the target.
