Events. The company publishes its 2023 semi-annual report. During the reporting period, the company realized revenue of 498 million yuan, down 4.43% from the same period last year; the net profit belonging to shareholders of listed companies was 85 million yuan, an increase of 35.1% over the same period last year; the net cash flow generated by operating activities was 309 million yuan, an increase of 26.56% over the same period last year; the company intends to distribute a cash dividend of 2.20 yuan (including tax) for every 10 shares to all shareholders.
The main reason for the decline in revenue in the first half of 2023 is that the rental rate of some projects is not as good as expected. The main reason for the increase in the company's return net profit in the first half of 2023 is mainly due to the change of the cooperation mode of the Jinhe Daning Financial Intelligence Center project and the company's compliance with the provisions of the new lease standards. the termination of recognition of the right-to-use assets and lease liabilities related to the project is caused by the increase in asset disposal income.
According to the semi-annual report of 2023, the company's business model mainly includes leasing operation, shareholding operation and entrusted operation. By the end of the reporting period, the company had leased 43 projects and leased an area of about 770000 square meters. The company is entrusted to operate 28 projects, and the property area available for rental and operation is about 480000 square meters. The company participates in the operation of two projects, and the property area available for rental operation is about 100000 square meters.
By the end of this report, the company was in charge of 73 projects with a management area of more than 1.35 million square meters, and the overall number and area of projects were in the leading position in the industry. In terms of region, there are 61 projects in Shanghai, 9 projects in Beijing, 2 projects in Hangzhou and 1 project in Nanjing.
In the first half of 2023, the company's rental income and property management and other income were 362 million yuan and 135 million yuan respectively, accounting for 72.83% and 27.17% of revenue respectively.
Investment advice: benefit from the advantages of the urban village policy in super-mega-cities, "better than the big city" rating. The company is a service-oriented company with light asset operation, mainly engaged in positioning design, transformation, investment promotion, operation and service of urban old property and inefficient stock commercial property. It is estimated that the company's EPS from 2023 to 2024 will be about 0.28,0.30 yuan. Considering the advantages of the super-mega-city village policy, the company will be given a dynamic price-to-earnings ratio of 20-26 times in 2023, and the corresponding reasonable value range is 5.60-7.28 yuan, maintaining the "better than the big city" investment rating.
Risk hint: the risk of decreasing rental rate and rent difference; the risk of over-concentration in the region.