This report is read as follows:

Due to the decline in gross profit margin and mergers and acquisitions of energy properties, the growth rate of return profit is less than the growth rate of income; firmly sit at the top of the property track in the park and open up a new energy track in 2023.

Main points of investment:

The performance is in line with expectations and will be given an overweight rating. In the first three quarters of 2023, the company achieved operating income of 1.82 billion yuan, an increase of 24.7% over the same period last year, and a net profit of 83.9 million yuan, an increase of 0.3% over the same period last year. Maintain the EPS of 0.73,0.80,0.87 yuan respectively from 2023 to 2025, considering that the company is mainly engaged in high-tech park properties, and entered the energy property management, these barriers to entry and technical barriers are higher than other property services, coupled with the company's customers are already the top domestic resources, we believe that the company is the absolute leader of high-tech park services, giving the company 5.4X PB in 2023, corresponding to the target price of 32.7yuan / share.

Due to the decline in gross profit margin and mergers and acquisitions of energy properties, the growth rate of homing profit is lower than that of income growth. On the one hand, because the company's gross profit margin fell 1.4p ct to 12.0% compared with the same period last year, on the other hand, due to the acquisition of 51% stake in Tianding property in 2023, the profit and loss of minority shareholders increased by 30.2% compared with the same period last year. Coupled with the 46.5% year-on-year increase in taxes and surcharges caused by mergers and acquisitions, the company's profit growth rate was lower than the revenue growth rate, while the homing net profit excluding non-recurring profits and losses increased by 11.2%.

Firmly sit on the leading property track in the park and open up a new energy track in 2023. The company acquired energy and property management for the first time in 2023. Tianding property business is stable, with revenues exceeding 200 million yuan in the past three years. Dadu River large-scale Hydropower Development Company, the core customer, has rich project reserves and good certainty and growth in medium-and long-term performance. And the market demand of energy material management is closely related to the construction of energy system. The new energy industry represented by wind power, hydropower and photovoltaic is the new direction of the property management industry, and clean energy has a huge development space.

The breakthroughs made in the extension outside the government service area will become a new profit growth pole. In recent years, the company has gradually formed a mature business model in project specialization and standardization by successively undertaking government services in Enshi, Huangshi, Jingmen, Shenzhen, Shantou, Shandong Dongying and Tianjin.

Risk tips: rising labor costs, high customer concentration, the risk of core staff loss.