Incidents. The company announced its 2024 three-quarter report. In the first three quarters, the company achieved operating income of 1.683 billion yuan, a year-on-year decrease of 3.66% (achieved operating income of 0.457 billion yuan in the third quarter, a year-on-year decrease of 62.08%); net profit attributable to shareholders of listed companies was 0.511 billion yuan (net profit to mother was 0.245 billion yuan, a year-on-year decrease of 34.10%), a year-on-year decrease of 33.09%; achieved fully diluted earnings of 0.33 yuan per share in the third quarter (achieved fully diluted earnings of 0.16 yuan per share in the third quarter) .

In the first three quarters of 2024, the company achieved a weighted average return on net assets of 4.03%, down 2.31 percentage points from the previous year (the third quarter achieved a weighted average return on net assets of 1.91%, down 1.15 percentage points from the previous year).

The main reason for the 62.08% year-on-year decline in the company's revenue in the third quarter of 2024 was the decrease in space carrier sales revenue in the current period compared to the previous period. In the third quarter of 2024, the main reason why the company's net profit to mother decreased by 34.10% year-on-year was that space carrier sales revenue for the current period decreased compared to the previous period, but the company's investment income and fair value change income increased sharply in the current period, which led to a narrowing of the decline in net profit to mother in the current period compared to the decline in revenue.

In the third quarter of 2024, the main operating data of the company's real estate business was: 1. From January to September 2024, the company had no new real estate project reserves. 2. From January to September 2024, the company's real estate business started a new construction area of 0.1942 million square meters, and completed a project area of 0.6356 million square meters. Among them, no new projects were started in the company's real estate business from July to September 2024. The completed area is 0.1277 million square meters. 3. From January to September 2024, the company's real estate business achieved sales revenue of 0.905 billion yuan, a year-on-year decrease of 5.29%. Among them, in July-September 2024, the company achieved sales revenue of 0.179 billion yuan, and in July-September 2023, the company achieved sales revenue of 0.933 billion yuan. 4. At the end of September 2024, the company leased a total real estate area of 1.507 million square meters. From January to September 2024, the company's real estate business achieved a total rental income of 0.76 billion yuan, a year-on-year decrease of 1.33%. Among them, in July-September 2024, the company's real estate business obtained a total rental income of 0.275 billion yuan, an increase of 2.21% over the previous year.

The reasonable value range is 32.37-40.46 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, responds positively to national strategic opportunities, actively connects with global innovation resources, and the company's RNAV value is 40.46 yuan, so the reasonable range for the corresponding company is 32.37-40.46 yuan, corresponding to the 2024 dynamic PB of 3.68-4.60 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.