incident. The company announced its semi-annual report for 2023. During the reporting period, the company achieved operating income of 541 million yuan, a year-on-year decrease of 59.67%; net profit attributable to shareholders of listed companies was 392 million yuan, an increase of 17.02 times over the previous year (non-net profit attributable to shareholders of listed companies was 387 million yuan, an increase of 20.83 times over the previous year); and achieved fully diluted earnings per share of 0.25 yuan.
Affected by a sharp decline in real estate sales revenue, the company's revenue fell 59.67% year on year in the first half of 2023; however, due to investment income and fair value fluctuation income reaching 327 million yuan and 134 million yuan respectively, driven by sharp increases of 2.49 times and 2.64 times over the previous year, respectively, the company's net profit increased 17.02 times year on year.
In terms of industrial investment system construction, in April 2023, the Zhangjiang Suifeng Fund successfully introduced the Blue Rocket International Headquarters to Pudong through a “investment linkage” method. In June, “Shanghai Pudong Leading District Haitong Private Investment Fund”
The agreement was successfully signed with the “Shanghai Pudong Leading District Guotai Junan Science and Technology Innovation No.1 Private Equity Fund”. By the end of June 2023, 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; 25 participating funds pledged and invested 4.844 billion yuan, leveraging a capital scale of 55.914 billion yuan. The market performance of the invested projects is outstanding. Nanxin Technology and Huizhiwei are all listed on the Science and Technology Innovation Board. In the first half of the year, the company's incubator section completed a total of 34 receptions, 895 regular roadshows, and 12 sessions at the Shanghai Semiconductor Industry Industry-Education Integration Conference, Italy Salon, and Policy Matchmaking Event.
In terms of stock land development and construction, in the first half of 2023, Zhangjiang Hi-Tech had an inventory of 18 projects under construction, involving a total construction area of about 3 million square meters. The company plans to complete 2 projects this year, with a completed area of about 320,000 square meters.
All remaining projects under construction are scheduled to be completed within the next 3 years. In the first half of 2023, the company opened a new project with a construction area of 247,000 square meters. In June 2023, as an important urban renewal project in the northwest region of Zhangjiang, Legend Plaza officially began construction, pushing the integration of production and city in Zhangjiang Science City to a new level.
Legend Square is scheduled to be fully completed by the end of 2028.
In terms of innovative financing models, in June 2023, Zhangjiang Hi-Tech and Zhangjiang Group successfully completed the issuance work related to the expansion with Zhang Run Building, a cooperative project between the two parties, as the underlying asset.
The reasonable value range is 21.28-25.08 yuan, maintaining the “better than the market” rating. We expect the company's EPS to be 0.76 yuan and 0.89 yuan respectively in 2023-2024. Considering that the company is an important developer of Zhangjiang Science City, the only listed company among the operators of Zhangjiang Science City, the net profit to the parent company maintained high growth in the first half of '23. Therefore, the company was given a dynamic price-earnings ratio of 28-33 times in 2023. The corresponding reasonable value range was 21.28-25.08 yuan, corresponding to a dynamic PB of 2.56-3.01 times in 2023, maintaining the “superior to market” rating.
Risk warning. The company's leasing and sales business faces the risk of policy regulation, as well as the risk that venture capital business will not expand smoothly.