Revenue and profit declined, gross margin improved, and net profit margins were under pressure. Maintaining a “buy” rating, the Sino-Singapore Group released its 2024 interim report. The company's revenue for the first half of the year was 1.511 billion yuan, -20.9%; net profit to mother was 0.562 billion yuan, -27.1%; operating net cash flow was 0.557 billion yuan, +64.0% year on year; gross margin and net margin were +9.4pct, -6.2 pct to 62.0% and 41.2%, respectively, and net investment income of 0.118 billion yuan, 44.7% year on year. Considering that park development is affected by the downturn in the market, we lowered our profit forecast. We expect net profit to be 1.17, 1.26, and 1.4 billion yuan (the original value was 1.43, 1.55, 1.68 billion yuan), EPS was 0.78, 0.84, and 0.94 billion yuan respectively, and the current stock price corresponding PE was 8.5, 8.0, and 7.1 times, respectively. The company's “integrated two wings” business is developing collaboratively. Emerging businesses are expected to continue to increase their performance and maintain a “buy” rating.

The industrial park's investment promotion results have been remarkable. The multi-platform operation business accelerated the industry-city integration park. By the end of the first half of the year, the company had a development and operation area of over 250 square kilometers. In the first half of the year, the company had introduced 39 domestic and foreign investment projects for the Suzhou Industrial Park, which had accumulated about 2,540 projects; about 430 enterprises with their own carriers had settled in, and the comprehensive occupancy rate exceeded 90%. In terms of Zhongyuan District, the total construction area of Zhongyuan in the district has accumulated about 1.5 million square meters. The District Zhongyuan project has been delivered to achieve a comprehensive occupancy rate of 64%, and a total of 0.526 million square meters of Zhongyuan projects in Changzhou, Zhenjiang, Nantong, Jiashan, Jiangyin, Jurong and other districts have been delivered. The company's real estate fund management platform, Xinyuan Rui, launched two industrial operation projects in the first half of the year: Changshu Meili Intelligent Manufacturing Industrial Park and Kunshan Cross-border E-commerce Industrial Park. Currently, the management area is about 0.55 million square meters. China Garden House, the company's high-quality blue and white collar apartment platform, and Singapore City Development Group jointly initiated the establishment of a 0.4 billion yuan blue and white collar dormitory investment fund. Among them, the Shanghai apartment project has already begun renovation.

Investment in various fields boosts scientific and technological innovation. By the end of June, the company had pledged 51 funds, with a total pledge amount of nearly 4.35 billion yuan, enabling 96 investment projects to settle in the park, driving a total investment of 64.1 billion yuan; it has directly invested 38 technology projects, with a total investment amount of 0.57 billion yuan, driving a total investment of 8.6 billion yuan. As of the end of June, the company invested in the establishment of Sino-Singapore Green Energy and Zhongxin Chunxing added 179 MW connected to the grid, mainly distributed in the Yangtze River Delta region, and continued to provide renewable clean electricity to more than 400 high-quality enterprises.

Risk warning: Increased market competition, industrial investment risks, and new energy business expansion falling short of expectations.