An asset-light park operator service provider
The company's main business is the positioning, design, transformation, investment, operation management and in-depth value-added services for enterprises in cultural and creative and scientific and technological innovation industrial parks. It mainly uses the three business models of “leased operation”, “shareholding operation”, and “trusted-operation”. As of December 31, 2022, the company has operated and managed 68 cultural and creative industrial parks in more than ten major cities on the three continents of China, America and Europe, with a management area of over 1.18 million square meters, an increase of 18% over 2021, and has become a leading enterprise with great influence in the industry.
Develop artificial intelligence management platforms to empower the technological, cultural and creative industries
Based on intelligent cloud and edge computing, the company developed an intelligent wehome space management platform with AIoT (Artificial Intelligence Internet of Things) as the core to promote the deep integration of new technology and office scenarios. While implementing intelligent park management, wehome uses the office scenario as an entry point to provide various services such as smart parking, online property payment, smart park keys, park shuttle buses, etc., to support park expansion and construction and daily operation and management requirements. It is expected to be applied in more parks in the future.
The company develops an intelligent community operation model integrating big data, sharing, intelligence, the Internet, cloud platforms, and financial services to provide industrial park services such as investment, design, and operation. The company has served thousands of companies and settled in influential well-known companies such as Meituan Review, Van Deng's Book Club, and Ramen Said.
We believe that by building an enterprise service system and connecting with internal and external resources in the park, it is a direct implementation scenario where artificial intelligence empowers physical enterprises. The company has rich park data, including multi-dimensional data such as project banks, business entity banks, population banks, corporate banks, etc. At the same time, the company has data processing and data analysis capabilities. The company is expected to integrate resources from various sources, build an information platform for industry-capital exchange and cooperation, and become a leading domestic service provider for the entire value chain of science, technology, culture and creativity industries.
Cash is plentiful, and 23Q1 is gradually recovering
2022 results are under pressure: The company achieved revenue of 779 million yuan/-18.44% year on year, achieved net profit of 32 million yuan/-68.84% year on year, and net profit returned to the mother after deduction of 11 million yuan, 85.58% year on year, due to delays in transformation progress and investment promotion work and relatively rigid costs.
Profitability in 23Q1 improved month-on-month: Q1 of 2023 achieved revenue of 239 million yuan (year-on-year growth rate of 9.66%, month-on-month growth rate of 25.66%), and net profit of the mother was 0.2 million yuan (year-on-year growth rate of -90.33%, month-on-month growth rate of 109.40%). The company has monetary capital of 682 million yuan, current assets totaling 1,237 million yuan, and plenty of cash. As new development projects release their performance, the company is expected to gradually break out of the trough.
Investment advice
I am optimistic that the company will follow the development trend of the digital economy, empower startups with advanced technologies such as artificial intelligence, big data, and cloud platforms, and become excellent technology service providers. In 2023-2025, the company's net profit is estimated to be 84 million yuan, 190 million yuan, and 247 million yuan respectively. The current stock price corresponding to PE is 25.35, 11.17, and 6.87 times, respectively, covering the “buy” rating for the first time.
Risk warning
Industry policy risks, increased industry competition risks, park construction falls short of expectations, investment promotion progress falls short of expectations