incident. The company announced its three-quarter report for 2023. In the first three quarters of 2023, the company achieved operating income of 1,746 billion yuan, a year-on-year increase of 7.11%; net profit attributable to shareholders of listed companies was 764 million yuan, an increase of 3.61% year-on-year (non-net profit attributable to shareholders of listed companies was 756 million yuan, an increase of 1.62% over the previous year); and achieved basic earnings per share of 0.49 yuan.
In the third quarter of 2023, the company achieved operating income of 1,205 million yuan, a year-on-year increase of 316.93%; net profit attributable to shareholders of listed companies was 371 million yuan, a year-on-year decrease of 48.08% (non-net profit attributable to shareholders of listed companies was 368 million yuan, a year-on-year decrease of 49.24%); and achieved basic earnings per share of 0.24 yuan.
Driven by the increase in real estate sales in the third quarter, the company's revenue in the third quarter of 2023 surged by 316.93% year on year; however, due to the small increase in the fair value of financial assets held in the current period compared to the same period last year, the company's net profit fell 48.08% year on year.
According to the company's “Announcement on the Main Operating Data of Real Estate Business for the Third Quarter of 2023”: 1) From January to September 2023, the company has no new real estate project reserves. 2) From January to September 2023, the company's real estate business started a new construction area of 247,000 square meters and completed an area of 237,000 square meters. Among them, from July to September 2023, no new projects were started in the company's real estate business, with a completed area of 237,000 square meters. 3) From January to September 2023, the company's real estate business achieved sales revenue of 955 million yuan, a year-on-year decrease of 8.97%. Among them, the company achieved sales revenue of 932 million yuan from July to September 2023. 4) At the end of September 2023, the total area of the company's leased real estate was 1,354,400 square meters. From January to September 2023, the company's real estate business achieved total rent income of 770 million yuan, an increase of 35.74% over the previous year. Among them, from July to September 2023, the company's real estate business received total rent income of 270 million yuan, an increase of 48.6% over the previous year.
The reasonable value range is 21.28-25.08 yuan, maintaining the “superior to the market” rating. We expect the company's EPS for 2023-2024 to be 0.76 yuan and 0.89 yuan, respectively. Considering that the company is an important developer of Zhangjiang Science City and the only listed company among the operators of Zhangjiang Science City, the company was given a dynamic price-earnings ratio of 28-33 times in 2023, corresponding to a reasonable value range of 21.28-25.08 yuan, and a dynamic PB of 2.56-3.01 times corresponding to 2023, maintaining the “superior to the 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.