UDC(SZ:000036) HTSC·2025-08-28 08:33Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The company reported a revenue of 214 million RMB for the first half of 2025, a year-on-year decrease of 1.92%, and a net profit attributable to shareholders of 2 million RMB, down 93.84% year-on-year. The company faces significant pressure on product sales but may see acceleration in core urban renewal projects as their importance increases. The company is actively working on a second growth curve, and its transformation progress should be monitored in the long term [1][2] - The company's operational business has become a solid foundation for its performance, contributing 99.6% of total revenue in the first half of 2025, with rental income from real estate at 146 million RMB, up 5% year-on-year, and hotel income at 68 million RMB, up 1% year-on-year [2] - The core project "Yupin Luanshan" has made progress, with the main structure reaching eight floors by the end of August, and plans to open a marketing showroom and model room in September, with pre-sales expected within the year. The "Hualian Nanshan A District" project is still in the early stages, but recent government meetings on urban renewal may benefit its progress [3] - The company is actively investing in strategic emerging industries such as new energy, new materials, and new technologies. As of the first half of 2025, it has invested in Shenzhen Juneng, which holds eight patents related to lithium carbonate and lithium hydroxide technologies. The company has completed a share buyback plan, repurchasing 0.57% of its shares for approximately 30 million RMB, enhancing shareholder equity [4] Financial Forecast and Valuation - The company is expected to launch new projects as planned, positively impacting future performance. The forecast for net profit attributable to shareholders for 2025, 2026, and 2027 is 80 million RMB, 90 million RMB, and 190 million RMB, respectively, with corresponding EPS of 0.06, 0.07, and 0.13 RMB. The target price is set at 4.53 RMB, up from the previous 3.83 RMB, reflecting an increase in comparable company valuations [5][11]