GOLDEN UNION(SH:603682) Haitong Securities·2024-09-06 07:09Investment Rating - The investment rating for the company is Neutral, downgraded from a previous rating [1] Core Views - The company reported a revenue of 518 million yuan for the first half of 2024, an increase of 4.01% year-on-year, while the net profit attributable to shareholders decreased by 72.83% to 23 million yuan [5] - The increase in revenue is attributed to improved occupancy rates of new and ramp-up projects, as well as marginal improvements in existing project occupancy rates [5] - The company has a total of 71 managed projects covering over 1.4 million square meters, primarily located in major cities like Shanghai and Beijing [5][6] - The company benefits from urban renewal policies in major cities, positioning itself as a light-asset service provider focused on the design, renovation, leasing, and operation of old and inefficient commercial properties [5][6] Financial Summary - The company’s operating cash flow increased by 10.07% year-on-year to 340 million yuan [5] - The projected earnings per share (EPS) for 2024 is 0.11 yuan, with a book value per share (BPS) of 2.45 yuan [6] - Revenue is expected to grow from 1,032 million yuan in 2023 to 1,134 million yuan in 2024, reflecting a year-on-year growth rate of 9.9% [7] - The net profit is projected to decline significantly to 51 million yuan in 2024, a decrease of 48.3% compared to 2023 [7] Valuation - The company is valued using a price-to-book (PB) ratio, with a target range of 3.19 to 3.92 yuan based on a dynamic PB of 1.3 to 1.6 times [6] - The company’s financial metrics indicate a gross margin of 28.7% in 2023, expected to slightly improve to 28.8% in 2024 [9] - The net asset return rate is projected to decrease from 8.8% in 2023 to 4.4% in 2024 [9]