23H1's revenue increased 49% year over year, and net profit for homo increased significantly. 1) 23H1 achieved operating income of 3.37 billion yuan, +49% year-on-year, recovering to 99% in '19; realized net profit of 583 million yuan, +808% year-on-year, recovering to 269% in '19. 2) 23Q2 The company achieved operating income of 2.111 billion yuan, +96% year on year, recovering to 157% of 2019; realized net profit of 350 million yuan, turning loss into profit from -111 million yuan in 2022.
By business: 1) Airport business revenue was 956 million yuan, +48% year-on-year, recovering to 101% of the same period in '19. This is mainly due to improved market conditions and increased demand for air ticket business. 2) The 23H1 real estate business achieved revenue of 1,522 billion yuan, +141% year-on-year, recovering to 77% of the same period in '19. This is an increase in sales in the real estate business, carrying forward revenue from the Haoting Nanyuan C14 project, driving a sharp increase in real estate revenue over the same period last year. 3) Property business revenue was 353 million yuan, -14% year-on-year, recovering to 89% of the same period in '19. 4) The tax exemption and commercial rent business achieved revenue of 140 million yuan, -41% year-on-year, and recovered to 11% in the same period in '19.
Make every effort to promote the resumption of work and production, and drive the airport business back up. In the first half of 2023, the total number of aircraft take-off and landing was 88,900, passenger throughput was 13.1063 million, and cargo and mail throughput was 75,100 tons, up 68.28%/109.47%/45.25% from 2022, respectively, and recovered to 115.94%/109.93%/106.40% in the same period in 2019. Among them, Sanya Phoenix International Airport achieved 68,900 aircraft take-off and landing, 11.243 million passengers, and 59,300 tons of cargo and mail in the first half of the year, up 63.53%/105.27%/43.32% from 2022, respectively, and recovered to 111.67%/108.02%/97.62% in the same period in 2019.
Profitability has improved, and expenses have been properly controlled. 23H1's gross profit margin was 44.48%, +5.95pct year on year.
In terms of expenses, 23H1's sales expense ratio was 2.32%, year on year -0.19 pct; management expense ratio was 10.2%, year on year -2.82 pct; and financial expense ratio was 8.12%, year on year -3.54 pct. The company's costs and expenses are rigid, and the increase in revenue has a scale effect, leading to an increase in gross margin and a reduction in the cost ratio.
Profit forecasting and investment suggestions: Focusing on deepening reforms around modern new state-owned enterprises, Hainan Airport is led by speeding up the construction of world-class enterprises, focusing on improving core competitiveness and enhancing core functions. The company's revenue for 2023-2025 is estimated to be 68.21/76.47/8.241 billion yuan, up 45%/12%/8% year on year. Total net profit is 1,087/15.03/1,815 billion yuan, respectively, and -41%/+38%/21%. The current stock price corresponds to PE 42/30/25X, respectively. The current stock price corresponds to 42/30/25X, respectively. It was covered for the first time and gave a “recommended” rating.
Risk warning: Risk of macroeconomic fluctuations, risk of residents' travel recovery falling short of expectations, risk of recovering spending power falling short of expectations.