Core ideas:
The performance is steady. The company reported that in the first half of 2023, the company achieved revenue of 1.94 billion yuan, an increase of 16.8% over the same period last year, of which Q1 and Q2 were 960 million yuan and 980 million yuan respectively, with revenue of + 6.1% and + 29.5% respectively compared with Q1. In the first half of the year, the net profit returned to the mother was 650 million yuan, an increase of 14.5% over the same period last year, of which Q1 and Q2 were 320 million yuan and 330 million yuan respectively, which were + 19.4% and + 10.2% respectively over the same period last year. In terms of business performance, the company's property rental and management income in the first half of the year was 1.67 billion yuan, an increase of 8.0% over the same period last year, while hotel operating income was 270 million yuan, an increase of 132.4% over the same period last year.
The rental income of overall owned properties increased steadily. According to the company report, the company's rental income in the first half of 2023 was 1.45 billion yuan, an increase of 8% over the same period last year. Among them, office rental income was 770 million yuan, shopping mall rental income was 590 million yuan, and apartment rental income was 90 million yuan, which were + 3%, + 14% and + 19% respectively over the same period last year. The increase in rental income is mainly due to the improvement of turf efficiency and occupancy rate.
In the first half of 2023, the overall floor efficiency of company-owned properties was 767 yuan per square meter, an increase of 6% over the same period last year, including an increase of 2% in office buildings, 15% in shopping malls, and a slight decrease in apartment efficiency, down about 2% from the same period last year. In the first half of 2023, the overall rental rate of company-owned properties was 95%, which was 1pct higher than that at the end of 2022 and 2pct higher than that in the same period in 2022. Among them, the rental rates of office buildings, shopping malls and apartments were the same and increased by 14pct respectively compared with the same period in 2022. Although the flat efficiency decreased slightly during the apartment period, the increase in rental rate effectively offset the decline and led to a year-on-year + 19% increase in apartment rental income.
Profit forecast and investment advice. The company takes the International Trade Center project as the main operation body, the location is scarce, the endogenous turf efficiency growth is stable, the performance stability is strong, the exchange degree is high. We expect the company's 23-25 net profit to be 1.227 billion yuan, 1.265 billion yuan and 1.304 billion yuan, + 9.9%, + 3.1% and + 3.1% respectively compared with the same period last year. With reference to the comparable company valuation, the company is given a 23-year PE=20X with a reasonable value of 24.37 yuan per share and a "buy" rating.
Risk hint. The macro policy is not as expected, the rent collection rate is lower, the rental rate is lower and so on.