Suzhou High-tech (600736) Company Annual Report Review: Steady Annual Results and Diversified Business
Investment Highlights: Events.The company announced its 2018 annual report.At the core of the report, the company achieved operating income of 72.82 million, an increase of 16 per year.64%; Net profit attributable to shareholders of listed companies.11 ‰, increasing by 0 every year.84%; fully diluted expected return of 0.41 yuan.  In 2018, driven by the increase in the number of carry-over commercial buildings, the company’s revenue increased by 16%.64%; At the same time, the company achieved net profit attributable to mother 6.11 ‰, increasing by 0 every year.84%.According to the company’s 2018 annual report, in 2018, the company completed the contracted sales area of commercial housing 47.840,000 square meters, a decrease of 4 a year.25%; contract sales amount 67.13 ppm, an increase of 2 per year.99%.As of the end of the reporting period, the company has completed construction on sale and is under construction.930,000 square meters, including 111 houses.710,000 square meters, business 20.220,000 square meters.During the year, the company’s newly-built commercial land reserve area was 43.790,000 square meters, with a total building area of 73.440,000 square meters.In 2018, the company’s tourism real estate enhanced the added value of its products by enhancing the linkage effect between tourism projects and surrounding residential development.Among them, the Suzhou New Suzhou Paradise supporting projects include Encounter Mountain, Jade Seasons, and Elephant Mountain 天津夜网 House, which expanded the sales area at the end of the consecutive reporting period.210,000 square meters, sales amount 46.0.8 billion; Xuzhou Paradise supporting projects in Xuzhou area include Wanyue City and Future City, and the sales area at the end of the reporting period was terminated at 34.890,000 square meters, the sales amount is 30.04 billion.In 2018, the company’s tourism business completed revenue1.6.1 billion, 127 tourists.170,000 person-times.In 2018, Dongling Vibration achieved operating income3.57 ppm, an increase of 11 years.56%.As of the end of the reporting period, the company’s Ronglian Fund has completed a total of 21 investment projects with an investment amount of 2.US $ 80.2 billion, withdrawing from three projects. The shares of Lihu, which have been invested in, have been listed in October 2018, and two other invested companies are planning to enter the IPO process.  According to the company’s 2018 annual report, in 2019, the company’s commercial housing planned construction area is 195.270,000 square meters, 106 new construction area.910,000 square meters. The planned new commercial housing projects are Suzhou Industrial Park Lots 3 and 4, Lot 4 Industrial Park Project, Hefei Central Mansion Project, etc.Promote the construction of Suzhou World Forest World, Xuzhou Paradise Happy World, and upgrade the company’s tourism products.  Investment Advice.Establish the strategy of “cultivating and investing operators in emerging industries” and “integrated market” rating.  Based on the strategic positioning of “emerging and developing investment industries for emerging industries”, the company focuses on the layout of innovative real estate, energy conservation and environmental protection, upgrading and upgrading of strategic emerging industries, strengthening the integration and development of non-bank finance and other industries, and gradually realizing industrial structure adjustment and development through the development of industrial investment.Layout, establish a two-round value-driven business model of “innovative real estate + emerging investment”.We expect the company’s EPS to be 0 in 2019 and 2020, respectively.62 and 0.77 yuan, the corresponding RNAV is 14.85 yuan.We refer to the 2019 average dynamic assessment of innovation and transformation parks, and companies have 16-20 times dynamic PE in 2019, corresponding to a reasonable value range of 9.92-12.40 yuan, maintaining the company’s “preliminary market” rating.  Risk Warning: The company faces risks of interest rate hikes and policies, as well as the risk of unsuccessful transformation.