Incidents. The company published its 2024 semi-annual report. During the reporting period, the company achieved operating income of 1.225 billion yuan, up 126.54% year on year; net profit attributable to shareholders of listed companies was 0.266 billion yuan, down 32.13% year on year; and achieved comprehensive diluted earnings of 0.17 yuan per share. The company pays a cash dividend of 0.52 yuan (tax included) for every 10 shares to all shareholders.

The main reason for the 126.54% year-on-year increase in the company's revenue in the first half of 2024 was the sharp increase in the company's space carrier sales revenue in the current period compared to the same period last year. In the same period, the main reason why the company's net profit to mother decreased by 32.13% year on year was due to a 0.279 billion yuan increase in the profit of the main business of space carrier sales in the current period compared to the previous period, but the investment income from the transfer of shares held in joint ventures in the previous period increased by 0.412 billion yuan compared to the current period.

In terms of industrial space development and construction, in the first half of 2024, Zhangjiang Hi-Tech had 14 projects under construction, involving 3 completed projects with a total construction area of about 2.42 million square meters, involving a total construction area of 0.508 million square meters.

In building an industrial investment system, the company continues to use “direct investment+fund+incubation” to aggregate capital markets to promote the development of industrial ecology and further enhance industrial investment. In April 2024, the company initiated the establishment of the Zhang Jiang Sui Yue Fund, with an initial fund size of 0.116 billion yuan; in June 2024, the establishment of the Zhang Jiang Suifeng Phase II Fund was completed. All partners have completed the first phase of investment, and subsequent capital raising is ongoing. By the end of June 2024, the company's cumulative industrial investment had reached 9.441 billion yuan, an increase of 8.36% over the previous year.

Among them, there were 55 direct investment projects, with an investment amount of 40.77 yuan; 30 participating funds pledged an investment of 5.464 billion yuan, leveraging a capital scale of 58.896 billion yuan. At the same time, the company continues to strengthen the 895 incubator, incubate world-class talents, and cultivate local high-tech enterprises through the ability to integrate all factor resources.

In terms of rural revitalization and construction, in the first half of 2024, Zhangjiang Hi-Tech completed the “Zhangjiang Hi-Tech? The construction of “Chigan Village Garden Apartment” transformed residential houses into high-quality, high-standard apartment projects, attracted scientific and technological talents to integrate into the countryside, and contributed to the “talent revitalization” of Qigan Village. It also uses “rural old-age care” in rural revitalization as an entry point to promote digital intelligence to help rural old-age care, make up for shortcomings in people's livelihood, improve the rural old-age service system, and explore the creation of the first “smart neighborhood point” in the region.

The reasonable value range is 21.28 to 22.75 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 an important developer of Zhangjiang Science City, the only listed company among the operators of Zhangjiang Science City, it responds positively to national strategic opportunities and actively connects with global innovation resources. Therefore, the company was given a dynamic price-earnings ratio of 28 times in 2024. At the same time, considering the company's RNAV value of 22.75 yuan, the corresponding company's reasonable range was 21.28 to 22.75 yuan, corresponding to the 2024 dynamic PB of 2.42-2.59 times, maintaining a “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.

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