Incidents. The company published its 2023 annual report. During the reporting period, the company achieved operating income of 2,026 billion yuan, up 6.24% year on year; net profit attributable to shareholders of listed companies was 948 million yuan, an increase of 15.29% year on year; and achieved fully diluted earnings of 0.61 yuan per share. The company plans to distribute cash dividends of RMB 1.9 (tax included) for every 10 shares to all shareholders.
In 2023, the company is in a large-scale, fast-paced carrier development cycle, mainly developing 19 construction projects, of which 2 were completed, 16 were renewed, and 1 was built. The total construction area is 3.24 million square meters, and the total planned investment amount is 50.4 billion yuan. The investment was completed in the same year of 6 billion yuan. Two projects have been completed, with a total completed area of about 320,000 square meters.
The company insists on pooling market resources to promote industrial development through “direct investment+fund+incubation”.
In terms of direct investment, the company has accumulated 52 direct investment projects, with a total investment of 3.86 billion yuan. On the fund side, fund pledges of $1.13 billion have been completed in 2023. In terms of actively managed funds, the full paid-in capital of the Fushuixin Fund was completed, and the establishment of the Fusilim Phase II Fund was raised. Relying on the 895 incubator, the company has created a “innovation base+venture camp+incubation fund” trinity industry cultivation model to serve startups in the technology industry in a comprehensive manner.
By the end of 2023, the 895 innovation base added 58 innovative enterprises during the year, with a new lease area of over 11,000 square meters. The 895 Startup Camp successfully held the 12th and 13th seasons, focusing on aerospace and information security. 108 projects were selected, 56 projects were selected, and the “Haichuang Pudong” Innovation and Entrepreneurship Competition for Returning Students Studying Abroad was successfully held.
In 2023, around the overall deployment of the “Golden Central Development Belt”, the company focused on promoting space development for regional projects such as the Shanghai Integrated Circuit Design Industrial Park, Zhangjiang City Sub-Center, North Zhangjiang District, and Legend Square Urban Renewal, and completed construction tasks against the benchmarks. In 2024, it is planned to open 3 new projects, with a total construction area of 348,000 square meters, 9 completed projects, and a total construction area of 1.112 million square meters.
In 2023, the company will speed up asset sorting and restructuring, revitalize property assets through asset securitization tools, increase the speed of capital turnover, and speed up the industrial investment layout. Combine the asset securitization operation experience of the “Zhangjiang REIT” launch and expansion to improve the full-channel construction of the “Project Company-PreREITs Fund-REITs Public Fund”.
The reasonable value range is 21.28-25.08 yuan, maintaining the “superior to the market” rating. We expect the company's 2024-2025 EPS to be 0.76 yuan and 0.86 yuan respectively. Considering that the company is a state-owned listed company directly under the Pudong New Area, the developer of the Zhangjiang Science City, the core carrier area of the Shanghai Science and Technology Innovation Center, and the organizer of industrial resources, the net profit to the mother continued to grow in 23 years. Therefore, the company was given a dynamic price-earnings ratio of 28-33 times in 2024, corresponding to a reasonable value range of RMB 28-21.25.08, corresponding to the 2024 dynamic PB of 2.42-2.85 times, maintaining the “superior to the market” rating.
Risk warning. The company's rental and sales business faces the risk of policy regulation, as well as the risk of poor venture capital business development.