Revenue has narrowed, one wing and two wings coordinated development, maintaining the "buy" rating Zhongxin Group released the 2023 interim report. The company's operating income in the first half of 2023 was 1.91 billion yuan, down 21.15% from the same period last year; net profit from home was 771 million yuan, down 8.47% from the same period last year; investment income was 213 million yuan, up 37.29% from the same period last year; and basic earnings per share was 0.51 yuan. With the coordinated development of the company's one body and two wings, the scale of the park in the district is constantly expanding, and the new energy track is accelerating its expansion. We maintain the profit forecast and expect the company's net profit from 2023 to 2025 to be 17.6,19.9 and 2.18 billion yuan, corresponding to EPS 1.17,1.33,1.45 yuan, and the current stock price is 8.3,7.3,6.7 times corresponding to PE, maintaining a "buy" rating.
With regard to the acceleration of the construction of the industrial park and the establishment of a real estate fund management platform, Zhongxin Park, Ruisan City Fusion Park, in the first half of the year, the company introduced 50 domestic and foreign investment projects into Suzhou Industrial Park, including 31 science and technology projects; the newly registered domestic and foreign capital totaled about 2.1 billion yuan. Construction of the new Kunchenghu Park officially started in January, with 4 newly registered projects in the first half of the year, with a total investment of 3.86 billion yuan. In the district park, Taicang Huangjing Intelligent Manufacturing Industrial Park was added in the first half of the year, with a planned construction area of more than 110,000 square meters and a total planned investment of more than 300 million yuan. By the end of June, the company had signed a total of 12 Zhongyuan projects with a total construction area of 1.72 million square meters, of which about 330,000 square meters were delivered to Changzhou, Zhenjiang, Nantong and Jiashan projects. The comprehensive rental rate of all kinds of carriers in Suzhou Industrial Park is more than 92%, and the rental rate of about 1.1 million square meters of industrial carriers is about 95%. At the same time, the company set up the real estate fund management platform Zhongxin Yuanrui, completed the investment of the first asset management business Taicang Huangjing project, and made a good project reserve for the asset securitization of Zhongyuan business in Zhongyuan area in the future.
Investment in various fields promotes scientific and technological innovation, and the prospect of new energy layout can be expected by the end of June, the company has cumulatively subscribed 43 funds for investment, with a total amount of nearly 4 billion yuan, and 28 direct investment projects with a total investment of 500 million yuan, pulling a total investment of 5.5 billion yuan, further promoting the great-leap-forward development of high-quality enterprises in the park. In June, the second phase of the company's innovative start-up bonds of 1 billion yuan was successfully issued with a coupon rate of 2.9% and a subscription rate of 3.13 times, and the company's value was recognized by the market. By the end of June, Zhongxin Green Energy, Zhongxin Chunxing, Zhongxin Xude and other participating companies invested by the company have cumulatively completed grid-connected 170MW, project under construction 65MW, reserve project 500MW.
Risk hints: intensified market competition, industrial investment risks, new energy business expansion is not as expected.