Events. The company publishes its 2020 annual report. During the reporting period, the company achieved a total operating income of 3.593 billion yuan, an increase of 7.18% over the same period last year, and a net profit of 1.108 billion yuan, an increase of 2.10% over the same period last year. During the reporting period, the company paid a cash dividend of 3.00 yuan (including tax) for every 10 shares to all shareholders.
In 2020, the company achieved a total operating income of 3.593 billion yuan, an increase of 7.18% over the same period last year, mainly due to an increase in carried-over sales revenue. Of this total, real estate sales revenue was 2.158 billion yuan, an increase of 22.92% over the same period last year; real estate rental income was 1.318 billion yuan; and hotel apartment service income was 104 million yuan.
According to the company's 2020 annual report, the industrial carrier project in 2020: (1) the project was completed and put on record by Dujin Port Park at the end of November and was quickly booked by China Mobile Shanghai Research Institute; (2)) Office Park Jinke Park was carried out in an orderly manner according to the schedule and basically completed the annual node; (3) the customized project of Shanghai Research Institute of China Mobile 29-04 successfully obtained the planning license at the end of the year. (4) the decoration project of Building 6 of Minyuan in Dujin has been completed and handed over to Huawei; (5) Phase I (183 mu) of the core area of the future industrial park in the northern suburbs, the project construction in the east, south and north of the new material innovation base (except the underground outdoor of the south and north districts) has been completed for the record. The 160 houses in the first phase of Biyunzun residence project opened and all sold out in a short time. Biyun 10 project to achieve a breakthrough against the trend, 1-4 phase of all housing liquidation. The core area of Beijiao Future Industrial Park Phase I (183mu) has rented an area of 11300 mu by the end of 2020, and has intended customers to book a sales area of about 11800 mu.
New progress has been made in the establishment of the Pudong Intelligent Manufacturing Industry Investment Fund. The new Sheng Scion Fund Management Company, which was established in July 2020, has completed the registration of fund managers and has accumulated nearly 30 proposed investment projects in the field of intelligent manufacturing. By the end of 2020, the company held about 2.7 million yuan of all kinds of operating properties, with an overall occupancy rate of 80.71% (excluding hotels), basically the same as the same period last year.
According to the company's 2020 annual report, the company expects a total cash inflow of about 9.952 billion yuan (excluding debt financing) in 2021, including sales income of 4.67 billion yuan, leasing income of 1.68 billion yuan and investment income of 3.59 billion yuan.
Investment advice: transition to emerging urban development operators, "better than the big city" rating. The company is mainly engaged in the development, operation and management of Shanghai Jinqiao Industrial Park and Biyun International Community. The company holds all kinds of operating properties of about 2.7 million yuan. We estimate that the EPS of the company in 2021 and 2022 is 1.14 yuan and 1.33 yuan respectively. Considering the great development potential of the company's transformation to an emerging urban development operator, we give the company a reasonable value range of 12.54-15.96 yuan corresponding to 11-14 times dynamic PE, in 2021, maintaining a "better than the market" rating.
Risk hint: the company's rental and sale business faces the risk of raising interest rates and policy regulation, as well as the risk of economic downturn.
