This report is read as follows:
Due to the reduction of settlement for the development of the park, the company's business performance has fluctuated greatly, but the company has accelerated its industrial investment and green development, especially the green power plate has completed the 170MW grid connection and the project under construction, 65MW.
Main points of investment:
Maintain the "overweight" rating and maintain the target price of 13.68 yuan. In the semi-annual report of 2023, the company realized operating income and net profit of 19.1 yuan and 770 million yuan respectively, down 21.2% and 8.5% respectively from the same period last year. With the gradual landing of the green power project in 2023-2025, it is expected to bring incremental and stable income and performance for the company. The EPS of the company in 2023 / 2025 is 1.28 / 1.57 / 1.86 yuan, the target price is 13.68 yuan, and the current price corresponds to 7.2x PE in 2023.
The development and settlement of the park decreased in the first half of the year, and the performance fluctuated. On the one hand, due to the reduction of the park development business, the net profit of the park development business of Zhongxin Sulu and Zhongxin Jiashan decreased by 87.9% and 102.8% respectively compared with the same period last year. On the other hand, Zhongxin Zhidi disposed of the equity of its subsidiaries and withdrew tax after the New deal in the first half of 2022, while no similar business resulted in a 70.8% decrease in net profit compared with the same period last year, so the company's operating income decreased by 21.2% compared with the same period last year. In addition, due to the company's investment income increased by 37.3% due to the disposal of shares in Zhongxin Lvfa, and the fair value change income increased by 239.9% due to the appreciation of industrial fund investment evaluation, the final net profit growth rate of homing was less than that of revenue growth.
Industrial investment deeply excavates the value of the main industry, and continues to optimize the track distribution proportion of fund investment. In June 2023, the second phase of 1 billion yuan of innovative start-up company bonds was successfully issued with a coupon rate of 2.9% and a subscription ratio of 3.13 times. The funds raised were mainly used for industrial investment business.
New energy business will speed up and increase efficiency, and it is expected to obtain more roof resources in industrial parks at all levels. In the first half of the year, the company and Singapore Yige New Energy, Shuangjie Electric and other well-known companies in the industry set up joint ventures to jointly expand photovoltaic projects. At present, Zhongxin Green Energy and Zhongxin Chunxing, Zhongxin Xude and other participating companies have cumulatively completed grid-connected 170MW, under construction project 65MW, reserve project 500MW.
Risk hint: the development progress of the company park is lower than expected, and the development of green power and industrial investment is lower than expected.