The company publishes its semi-annual report for 2020. During the reporting period, the company realized operating income of 4.28 billion yuan, down 13.6% from the same period last year, and the net profit belonging to shareholders of listed companies was 379 million yuan, down 44.8% from the same period last year.
In the first half of 2020, the company's revenue decreased by 13.6% compared with the same period last year, and its net profit decreased by 44.8% from the same period last year. (1) in the first half of 2020, the company completed a total operating income of 4.309 billion yuan, accounting for 40.1% of the annual budget; the net profit attributable to shareholders of the listed company was 379 million yuan, and the rate of return on net assets was 3.53%. (2) of the total operating income, real estate rental income is 615 million yuan, accounting for 14%; real estate transfer and sale business income is 1.097 billion yuan, accounting for 26%; trade logistics income is 2.023 billion yuan, accounting for 47%; manufacturing, service finance and other business income is 574 million yuan, accounting for 13%. (3) during the reporting period, according to the requirements of epidemic prevention and control, the company accelerated the full resumption of work and production at 25 sites under construction, involving a construction area of 269000 square meters, a total investment of 4.98 billion yuan, and a regional development and construction investment of 749 million yuan. (4) during the reporting period, the company reached 1.26 billion of foreign investment, 50.4% of the annual target, 18.42 billion of the registered capital of domestic enterprises, 73.7% of the target, and 6 regional headquarters of multinational corporations, 50% of the target. At the same time, a number of headquarters projects are reserved. (5) the global flagship store of Wal-Mart Sam member, Liebherr headquarters Building, Senlan Electronic Competition Hall and other projects have started construction in an all-round way, while BeiGene, Ltd. Pharmaceutical R & D Center and Edwards R & D Center have been renovated. Japan Disco operating headquarters and other projects officially opened. BoCom Airlines Leasing, Siemens Energy and other projects completed capital increase, scored twice. China Eastern Airlines shares, Minsheng Leasing and other 36 SPV projects landed. (6) at the end of last year, the company delisted 2.5 billion yuan from the core area of Zhuqiao town, unit 03 Hmur5 and Hmur14, and in the first half of the year, the company completed three equity investment projects, including cruise supply chain, Minju real estate and Shenshui Deyuan.
Investment suggestion: benefit from the construction of free trade zone and downgrade to "neutral" rating. Shanghai Waigaoqiao Free Trade Zone, where the company is located, is the leading area of policy and system innovation in the free trade zone. the company has a total development area of 20 square kilometers and holds a total construction area of about 4.46 million square meters of operating real estate projects. The company has five major business sectors: industrial development of the park, commercial office real estate, trade and logistics services, cultural industry investment, and financial services. We estimate that the EPS of the company in 2020 and 2021 is 0.80 yuan and 0.97 yuan respectively. We believe that the company will benefit from the process of promoting the free trade zone and will receive five major benefits: policy dividend, industrial upgrading, land price revaluation, positioning change and function upgrading, and will give the company a dynamic PE valuation of 14-18 times in 2020, corresponding to a reasonable value range of 11.2-14.4 yuan, downgraded to "neutral".
Risk hint: the company's rental and sale business is faced with the risk of policy regulation and control, as well as the risk of poor business development of the park platform.
