Events. The company publishes its semi-annual report for 2020. During the reporting period, the company achieved operating income of 2.127 billion yuan, an increase of 172.11% over the same period last year, and net profit of 1.423 billion yuan, an increase of 19.11% over the same period last year.
In the first half of 2020, due to the increase in revenue from the delivery of commercial housing projects in the company's real estate development and sales business, the company's operating income increased by 172.11% over the same period last year, and its net profit increased by 19.11% over the same period last year.
According to the company's semi-annual report 2020: during the reporting period, the company's real estate business realized a contract sales area of 91300 square meters, an increase of 170.92% over the same period last year; the contract sales amount was 585.6247 million yuan, a decrease of 52.07% over the same period last year. During the reporting period, the operating income of the real estate business reached 1.724924 billion yuan, an increase of 472.06% over the same period last year. During the reporting period, the operating income of the subsidiary Hi-Tech Construction reached 368.347 million yuan, an increase of 45.38% over the same period last year. Due to the increase in the settlement scale of internal industry linkage projects, the company achieved 346.9624 million yuan in municipal business operating income after the merger and offset, a decrease of 3.93% compared with the same period last year.
Hi-Tech Xinjun added three new projects: Hualan shares, PW Biology, and Love Technology. Hi-Tech Xinjun and Hi-Tech New Innovation jointly implemented additional investment in the Yihuejie project, and Hi-Tech loan completed the additional investment in the Elp project. Based on the consideration of strategic investment and the recognition of future value growth, the company contributed 456 million yuan to continue to increase its stake in Bank of Nanjing. During the reporting period, Hi-Tech successfully withdrew its entire equity interest in the Hansi Anxin project, and Hi-Tech loan withdrew part of the equity of Tianyuan Automation, resulting in a substantial increase in valuation. the above exit achieved a premium of more than 27 million yuan and achieved a good profit. The company continued to urge cooperative fund managers to strengthen market research and active management, and the net value of the fund increased significantly during the reporting period. At present, Ellis in the company's investment project has been reviewed by the Science and Technology Innovation Board listing Committee, Boko Information and Jiangeng Medicine have been reported to be listed on Kecheng Board, Guangzhou Agricultural Commercial Bank has declared the listing of small and medium-sized board, and Hualan shares have been declared to be listed on the gem. Jinpu Garden, Seiters and other projects to apply for A-share listing are in the process. During the reporting period, the company realized investment income of 895.589 million yuan, an increase of 14.19% over the same period last year, and realized fair value change income of 435.1984 million yuan.
At the end of the reporting period, the company's asset-liability ratio continued to remain low at 55.40%; at the end of the period, the company's interest-bearing liabilities totaled 3.961 billion yuan, accounting for 13.06% of total assets. The overall average financing cost during the reporting period was about 3.59%, down 0.97 percentage points from the same period last year.
Investment advice: around the strategic positioning of "city operators and value creators", "better than the big city" rating.
Relying on its own resource endowment and competitive advantage, the company actively grasps the opportunities of the gathering of innovative resources in Nanjing, the urban construction and development of Zidong area and the innovative reform of capital market, and promotes the linkage of real estate municipal business industry and the upgrading of business model; focus on the field of scientific and technological innovation industry, strengthen the combination of industry and investment and operation mechanism innovation, and promote the steady development of equity investment business. We estimate that the EPS of the company in 2020 and 2021 is 1.50 yuan and 1.51 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 13.5-16.5 yuan, maintaining the company's "better than the big market" rating.
Risk hint: the company faces the risk of policy regulation and sales falling short of expectations.
