Events. The company publishes its semi-annual report for 2020. During the reporting period, the company achieved operating income of 2.008 billion yuan, an increase of 40.69% over the same period last year, and its net profit was 546 million yuan, an increase of 22.80% over the same period last year.
In the first half of 2020, due to the revenue recognized from the transfer projects under construction on the G1 plot, the company's operating income increased by 40.69% over the same period last year, and its net profit increased by 22.80% compared with the same period last year.
According to the company's semi-annual report in 2020, the total cash income in the first half of the year was 3.728 billion yuan, including operating cash income of 3.681 billion yuan. In April 2020, the first batch of 160 pre-sale houses of Biyunzun Mansion on site S11 were sold out, with a cash income of 2.549 billion yuan. The fourth batch of 51 existing houses in Hong Kong Biyun 10 was also sold in April, with a cash income of 195 million yuan. During the reporting period, the company held about 2.35 million yuan of various operating properties, with an overall occupancy rate of 81.87% (excluding serviced apartments), which was basically the same as that in the first quarter of 2020 and the same period in 2019. Among them, the factory rental rate is 72.64%, the residential rental rate is 91.42%, the R & D building rental rate is 69.63%, the office building rental rate is 78.05%, and the commercial rental rate is 90.01%. The rental rate of service apartments is 43.96%, which is greatly affected by the epidemic. Commercial and urban functional supporting projects: (1) Office Park Ⅱ Metro Block Project (T3-5), which is being completed for the record; (2) Biyunzun residence (S11 plot residence) project, which fully promotes the interior decoration construction of outdoor overall and high-rise buildings; (3) La Baodu commercial complex project, the completion of interior decoration and outdoor overall construction, etc. (4) for the 17B-06 super high-rise project, the deepening design of the project has been completed, and the bidding for the project construction is under way as planned. In the first half of the year, the fund team composed of the company, CRRC Group and Shike Venture Capital Group was basically in place, actively carrying out personnel recruitment, basic system, budget and other work; at the same time, continuously improving the investment project database, has accumulated a number of proposed investment projects in the field of intelligent manufacturing.
According to the company's semi-annual report in 2020, the company's revenue budget totaled 7.178 billion yuan and completed 3.728 billion yuan in the first half of the year. The operating income in the second half of the year will be guaranteed to be 3.45 billion yuan.
Investment advice: the key project Biyun Zun residence is pre-sold this year, with a rating of "better than the big city". The company is mainly engaged in the development, operation and management of Shanghai Jinqiao Industrial Park and Biyun International Community. The company's main business is mainly concentrated in the real estate industry, gradually transforming from park integration developers to emerging urban development operators. The company adopts the business model of combination of rent and sale, based on rent, and linkage of recruitment and investment. The company holds all kinds of operating properties of about 2.35 million yuan. We estimate that the EPS of the company in 2020 and 2021 is 1.22 yuan and 1.52 yuan respectively. According to the current dynamic PE valuation of the relevant comparable companies, we give the company 14-18 times dynamic PE in 2020, corresponding to a reasonable value range of 17.08-21.96 yuan, maintaining the company's "better than the market" rating.
Risk hint: the company's rental and sale business faces the risk of raising interest rates and policy regulation, as well as the risk of economic downturn.
