Main points of investment:
Event: the company released its semi-annual report for 2023, 2023H1 achieved revenue of 1.91 billion yuan, year-on-year-21.15%; return to the mother net profit of 771 million, year-on-year-8.47%. From a quarterly point of view, 2023Q2's revenue in a single quarter was 980 million yuan, + 5.15% compared with the same period last year, and its net profit was 354 million yuan, + 43.90% compared with the same period last year.
The green energy business performed well, and the total profit of 23H1 increased by nearly 170% compared with the same period last year. The company takes the development and operation of the park as the core business, industrial investment and green development as the two wings. From a sub-sector point of view, the total profit of 23H1 company park development and operation / green public / industrial investment business is 7.90max 2.54 / 160 million yuan, which is-40.07%, + 169.55% and + 104.15%, respectively, compared with the same period last year. The company's green energy and production investment business increased year-on-year, strongly supporting the company's performance. Among them, the year-on-year decline in the total park development and operation profit was mainly due to the decrease in the park development business of Zhongxin Su and Zhongxin Jiashan in the current period. in addition, Zhongxin Zhidi disposed of the increase in equity investment income of its subsidiaries in the same period last year and adjusted the deduction tax difference according to the liquidation results after the land increase new policy, but there was no similar business in the current period.
23H1 gross profit margin reduced net profit margin increased, continue to strengthen production and investment capacity. 23H1's gross profit margin on sales was 52.54%, compared with-7.31pct in the same period; net sales margin was 47.40%. Compared with the same period + 2.12pct. Mainly 23H1 investment net income and fair value change net income + 175 million yuan compared with the same period last year. In addition, the company continues to strengthen its production and investment capacity, as of 23H1 company has subscribed nearly 4 billion yuan, pulling the total investment scale of each park project 57 billion yuan. The total investment of science and technology direct investment is 500 million yuan, driving the total investment of 5.5 billion yuan.
With the acquisition of Shucheng New Energy and Changfeng Jiereng in the first half of the year, distributed photovoltaic is expected to continue to expand. Zhongxin Green Energy, a subsidiary of 2023M3, acquired 100% stake in Shucheng New Energy; 2023M5 acquired 100% stake in Changfeng Jiereng. As of 2023H1 New Green Energy and Zhongxin Chunxing, Zhongxin Xude and other participating companies accumulatively connected to the grid 170MW, under construction 65MW, reserve 500MW. The company plans to connect to the grid 2GW in 2025, and if the planning can be realized smoothly, it is expected that distributed photovoltaic will continue to be released in the second half of 23 years. In addition, in the first half of the year, the company established joint ventures with Singapore Yige New Energy, Shuangjie Electric and other well-known companies in the industry to help the company expand photovoltaic.
Profit forecast and investment advice: we estimate that the return net profit in 23-25 years will be 17.39,20.09 and 2.346 billion yuan respectively, corresponding to PE 7.9 times 6.9pm 5.9 times, giving the company 23 years 11 times valuation and corresponding target price 12.76 yuan. Maintain a "buy" rating.
Risk hints: the risk of slowing down the pace of land transfer; the risk that the construction of new energy projects is not as expected; policy risk; the risk of fierce competition in industrial investment; the risk that the public information used in the research report may lag behind or not updated in a timely manner.