Events:
On August 21, 2023, the company released its semi-annual report of 2023. During the reporting period, the company realized operating income of 3.37 billion yuan, an increase of 48.81% over the same period last year. Net profit belonging to shareholders of listed companies was 583 million yuan, an increase of 807.55% over the same period last year, and earnings per share was 0.05yuan, an increase of 811.28% over the same period last year.
The profitability of the company has been greatly improved and the structure of assets and liabilities has been continuously optimized. During the reporting period, the company's gross profit margin on sales was 44.5%, an increase of 6 percentage points over the same period last year, the highest in five years; the sales, management and financial expense rates were 2.3%, 10.2% and 8.12% respectively, a decrease of 0.2% and 2.8 percentage points respectively over the same period last year; and the asset-liability ratio was further optimized to 55.94%, the lowest in five years.
Airport business fully recovered, passenger volume reached an all-time high: the company's 9 airports totaled in the first half of the year:
There were 889,000 takeoffs and landings, 13.106 million passengers and 75000 tons of cargo and postal movements, returning to 115.9%, 109.9% and 106.4% in the same period in 2019. Of these, Sanya Phoenix Airport had 689,000 takeoffs and landings, 11.243 million passengers and 59000 tons of cargo and postal services in the first half of the year, returning to 111.7%, 108% and 97.6% in the same period in 2019. Air travel has remained high since this year. Sanya, as a popular tourist destination, leads the country in the recovery of airport passenger flow, driving the rapid recovery of the company's airport management business, with revenue of 956 million yuan during the reporting period, an increase of 47.5% over the same period last year and 1.2% over 2019.
The elimination of real estate business is accelerated, and tax-free business is expected to grow: in addition to airport business, the company's other four main businesses respectively achieved income and year-on-year growth in the reporting period: tax-free business 140 million (- 41.2%). Affected by holding property rental income is no longer included in the statistics Inconsistent year-on-year caliber) / real estate business 1.522 billion (+ 140.8%) / property business 352 million (- 14.4%) / other business 399 million (+ 19%).
The de-transformation effect of the real estate business showed, driving the company's performance growth: in the first half of the year, the company's real estate business increased sales, carried forward the income of the Haoting Nanyuan C14 project, and the income increased significantly. Duty-free business is expected to grow further: the company's duty-free leased area on outlying islands is 71900 square meters, accounting for 13.8% of the total tax-free area on Hainan Island. The area of duty-free shop in Phoenix Airport will be increased by 5000 square meters after the opening of the second phase of Fenghuang Airport duty-free shop. At present, warrants processing, investment promotion and decoration work have been completed, and the qualification examination and approval of duty-free goods management is being promoted.
Earnings forecast, valuation and rating
We estimate that the company's operating income from 2023 to 2025 will be 67.5 million yuan, 7.32 billion yuan, respectively (the original value is 61.69 billion yuan, 67.95 billion yuan), the year-on-year growth rate is 43.5%, 8.5%, 6%, respectively, and the net profit of returning home is 1.192 billion, 1.52 billion yuan, respectively (the original value is 9.981.42, 1.712 billion yuan), and the year-on-year growth rate is-35.8%, 17.7%, 14%, respectively. The EPS is 0.1max 0.13max 0.16 yuan per share, and the corresponding PE is 38x/30x/25x. All the businesses of the company benefit from the location advantages of the free trade port, and are expected to give full play to the synergy and usher in new development opportunities. With reference to the comparable company, the company will be given 35 times PE in 24 years, corresponding to the target price of 4.68 yuan, and maintain the "overweight" rating.
Risk tips: passenger flow recovery is not as expected, tax-free business is not as expected, and real estate sales are not as expected.