The scale of revenue has declined, net profit has increased year-on-year. Maintaining a “buy” rating, Zhang Jiang Hi-Tech released its 2023 interim report. The company's revenue has declined, net profit has increased, the leasing business has remained steady, and industrial investment has continued to increase. We maintain our profit forecast. We expect the company's net profit to be 860, 9.46, and 1,098 million yuan for 2023-2025, corresponding to the 2023-2025 EPS of 0.56, 0.61, and 0.71 yuan. The current stock price corresponding to PE is 25.8, 23.5, and 20.2 times, maintaining the “buy” rating.
The carry-over scale and revenue declined, and net profit returned to the parent rose high
The company achieved total operating income of 541 million yuan in half a year, a year-on-year decrease of 59.67%; realized net profit of 392 million yuan, an increase of 1071.61% over the previous year; and realized net operating cash flow of 1,411 million yuan, a year-on-year decrease of 48.38%.
The decline in the company's revenue was mainly due to a decrease in industrial space carrier development and sales during the period. The large increase in net profit from the transfer of shares held by the company in joint ventures was increased. At the same time, the decline in the fair value of financial assets held, which are measured at fair value and whose changes are included in current profit and loss, narrowed.
Investment and construction have broken through the cracks, and the reserves of civil engineering projects are sufficient
In the first half of the year, the company introduced 7 key integrated circuit enterprises. In the Zhangjiang Science City area, which is responsible, the capital registration completed 2.05 billion yuan, actual foreign investment reached 56 billion US dollars, and 165 new domestic-funded enterprises were added. The company achieved real estate rental revenue of 501 million yuan in the first half of the year, an increase of 29.7% over the previous year. As of the end of June, the total leased real estate area was 1,3504 million square meters. The company had a total of 18 projects under construction in the first half of the year, involving a total construction area of about 3 million square meters. The company plans to complete 2 projects in 2023, with a completed area of about 320,000 square meters. The remaining projects under construction are scheduled to be completed within the next 3 years.
Industrial investment has set sail quickly, and innovation incubation has been very effective
The company achieved investment income of 327 million yuan in the first half of the year, an increase of 249.32% over the previous year. The main reason was that the investment income generated by the transfer of shares held by the company in joint ventures in the current period increased compared to the previous year. By the end of June, the company's cumulative industrial investment had reached 8.713 billion yuan. Among them, there were 53 direct investment projects, with an investment amount of 3,869 billion yuan; at the same time, 25 funds participated in the investment, and the total amount pledged was 4.844 billion yuan, jointly leveraging a capital scale of 55.914 billion yuan. The projects that have already been invested have performed well in the market. Nanxin Technology and Huizhiwei have both been listed on the Science and Technology Innovation Board.
Risk warning: The risk of declining sales in the real estate industry, business risk caused by policy adjustments, risk of enterprise operation.