Incidents. In 2023, the company achieved operating income of 3.127 billion yuan, an increase of 20.35% over the previous year; net profit to mother was 160 million yuan, a year-on-year decrease of 13.83%. The company pays a cash dividend of 2.85 yuan (tax included) for every 10 shares to all shareholders.
By category, ① basic properties achieved revenue of 2,749 billion yuan, an increase of 14.29%. ② The innovative business achieved revenue of 114 million yuan, an increase of 14.29%. ③ Urban services achieved revenue of 2.63 yuan, an increase of 184.34%.
In 2023, the company won a total bid amount of 1,876 billion yuan for new development projects, with a saturated annualized contract revenue of 969 million yuan; operating income was 3.127 billion yuan, an increase of 20.35% over the previous year. Affected by the market environment in the first half of the year, market development slowed. In the second half of the year, the company overcame difficulties, promoted marketing work, and achieved major breakthroughs in key business formats such as schools, medical care, and financial office buildings, providing strong support for the steady growth of 2023 performance and subsequent performance development.
Since 2020, according to the national regional development strategy and industry development process, the company has been deeply involved in key regional cities and promoted the implementation of the nationalization strategy in line with its own large-scale development requirements. By the end of 2023, the number of project management departments in the company reached 594, an increase of 15.79% over the previous year, and the service area increased to about 170 million square meters. The share of projects outside of Chongqing increased to 65.82%, and the number increased 26.54% year over year.
In 2023, the base market of Chongqing was stable, achieving revenue of 1,093 billion yuan, an increase of 5.32% over the previous year; revenue from regions other than Chongqing maintained rapid growth, achieving revenue of 2,031 billion yuan, an increase of 30.34% over the previous year.
In terms of revenue share, the share of revenue from regions other than Chongqing rose to 65.02% of the company's total revenue from the company's main business, an increase of 4.98 percentage points over the previous year.
① Office properties achieved revenue of 1,267 billion yuan, an increase of 19.70% over the previous year, accounting for 40.55% of revenue. ② Public property achieved revenue of 780 million yuan, an increase of 40.33% over the previous year, accounting for 24.97% of revenue. ③ School property achieved revenue of 435 million yuan, an increase of 16.09% over the previous year, accounting for 13.92% of revenue. ④ Commercial and residential properties achieved revenue of 347 million yuan, an increase of 4.39% over the previous year, accounting for 11.09% of revenue. ⑤ Aviation property achieved revenue of 296 million yuan, an increase of 7.47% over the previous year, accounting for 9.46% of revenue.
Investment advice: The public building sector maintains a relative competitive advantage and is rated “superior to the market”. The company has been deeply involved in the public building industry for more than 20 years. Adhering to a differentiated strategic position, the company continues to focus on the management and operation of future smart city public buildings and facilities in China. It has now formed a large scale, has a certain first-mover advantage, and maintains a relative competitive advantage in the public building industry. We expect the company's 2024-2025 EPS to be 0.8 yuan and 0.92 yuan respectively, giving the company a dynamic PE of 12-15 times in 2024, corresponding to a reasonable value range of 9.60-12.0 yuan/share, maintaining a “superior to the market” rating.
Risk warning. There are risks such as blocked implementation of incentive plans; rising labor costs; and excessive regional concentration.