Investment Rating - The report assigns a "Buy" rating for China Resources Land (01109.HK) [5] Core Views - China Resources Land, backed by a state-owned enterprise, demonstrates stable sales and land acquisition, with a continuous increase in market share and ample land reserves to support future performance [5] - The company is expected to achieve net profits attributable to shareholders of 27.74 billion, 30.47 billion, and 33.88 billion yuan for the years 2024-2026, with corresponding EPS of 3.89, 4.27, and 4.75 yuan, indicating a PE ratio of 6.2, 5.7, and 5.1 times respectively [5] Summary by Sections Sales and Land Acquisition - In 2024, the company achieved a contracted sales amount of 261.1 billion yuan, a year-on-year decrease of 15.0%, ranking among the top three in the industry with a market share of 2.7% [6][48] - The company maintained a strong land acquisition intensity, with rights-based land acquisition amounts exceeding 110 billion yuan from 2021 to 2023, and a rights-based land acquisition intensity above 50% [6][59] - As of the first half of 2024, the company’s land reserves totaled 56.99 million square meters, with 84% being development and sales-type land reserves, and over 70% located in first and second-tier cities [72] Real Estate Operations - The company’s rental income from real estate operations reached 11.47 billion yuan in the first half of 2024, a year-on-year increase of 7.0%, with a core net profit of 4.51 billion yuan, up 12.5% [7][81] - The shopping center segment has shown strong growth, with 82 centers opened and 46 under development, aiming to increase the number of operational shopping centers to 110 by the end of 2027 [86] Financial Performance - In the first half of 2024, the company reported a revenue of 79.51 billion yuan, a year-on-year increase of 8.5%, while the net profit attributable to shareholders was 10.25 billion yuan, down 25.4% [8][37] - The company’s gross margin for development and sales was 12.4%, a decrease of 4.6 percentage points year-on-year, but still ranked first among major peers in terms of net profit margin [8][42]

Investment Rating - The report assigns a "Buy" rating for China Resources Land (01109.HK) [5] Core Views - China Resources Land, backed by a state-owned enterprise, demonstrates stable sales and land acquisition, with a continuous increase in market share and ample land reserves to support future performance [5] - The company is expected to achieve net profits of 27.74 billion, 30.47 billion, and 33.88 billion yuan for the years 2024 to 2026, with corresponding EPS of 3.89, 4.27, and 4.75 yuan, indicating a low PE ratio of 6.2, 5.7, and 5.1 times [5] Summary by Sections Sales and Land Acquisition - In 2024, the company achieved a contracted sales amount of 261.1 billion yuan, a year-on-year decrease of 15.0%, ranking among the top three in the industry with a market share of 2.7% [6][48] - The company maintained a strong land acquisition intensity, with rights land acquisition amounts exceeding 110 billion yuan from 2021 to 2023, and a focus on first-tier cities, where the acquisition amount accounted for 60% in 2024 [6][59] - As of the first half of 2024, the company had a total land reserve of 56.99 million square meters, with 84% being development and sales-type land reserves, and over 70% located in first and second-tier cities [6][72] Real Estate Operations - The company reported total rental income of 11.47 billion yuan in the first half of 2024, a year-on-year increase of 7.0%, with a core net profit of 4.51 billion yuan, up 12.5% [7][81] - The shopping center segment has shown strong growth, with 82 centers opened and 46 under development, aiming to increase operational centers to 110 by the end of 2027 [7][86] Financial Performance - In the first half of 2024, the company’s revenue increased by 8.5% year-on-year, while the net profit decreased by 25.4% due to a decline in gross profit margin [8][37] - The company maintains a healthy debt structure, with a net debt ratio of 33.6% and a cash-to-short-term debt ratio of 1.54, indicating strong liquidity [8][78] - The expected revenue for 2024 is 266.56 billion yuan, with a gradual recovery in gross margin anticipated in the following years [9][82]

导 读 ☉ 文／克而瑞研究中心 | | | | 2025年1-2月 ·中国房地产企业 | | ■ . / ■ 完 m 端 · 什么 中 | | --- | --- | --- | --- | --- | --- | | | | | 肖售榜TOP100 | | | | 排名 | 企业简称 | 全国径金额 (亿元) | 排名 | 企业简称 | 权益金额 (亿元) | | 1 | 保利发展 | 340.0 | 1 | 保利发展 | 267.9 | | 2 | 中海地产 | 252. 1 | 2 | 中海地产 | 231.9 | | 3 | 华润置地 | 251.0 | 3 | 非润置地 | 0175.7 | | 4 | 一万科地产 | 212. 1 | 4 | 建发房产 | 144.2 | | 5 | 招商蛇口 | 194.5 | 5 | 万科地产 | 137.9 | | 6 | 建发房产 | 185.1 | 6 | 招商蛇口 | 132.3 | | 7 | 华发股份 | 172.2 | 7 | 华发股份 | 109.3 | | 8 | 绿城中国 | 146.1 | 8 | 绿城中国 | 101.0 | | 9 | ...

Group 1 - The core point of the article is the recent land transactions in Beijing's Shunyi District, highlighting the competitive bidding for residential land and the strategic implications for developers like China Resources Land and Greentown [1][3]. - China Resources Land acquired a residential land parcel in Shunyi District for 6.024 billion yuan, with a floor price of 35,007 yuan per square meter, indicating strong demand for low-density residential properties in the area [1][2]. - The land parcels in question have a low plot ratio of 1.01 and a height limit of 24 meters, making them rare low-density villa residential lands within the Sixth Ring Road, appealing to high-net-worth buyers [3]. Group 2 - In addition to the Shunyi District transaction, two residential land parcels in Jinhua were sold for a total of 825 million yuan, with Greentown winning one parcel at a slight premium [1][4]. - The Jinhua land parcels have a higher plot ratio of 1.80 and a height limit of 60 meters, indicating a different market dynamic compared to the Shunyi District [3][4]. - The competitive bidding process in Jinhua included 18 rounds for one of the parcels, reflecting the active interest in residential development in the region [3].

Core Viewpoint - Shanghai Huaren Ruicheng Real Estate Co., Ltd. has been established with a registered capital of 1.8 billion yuan, focusing on various real estate services [1] Company Summary - The legal representative of the newly established company is Lou Shanjie [1] - The company's business scope includes real estate development, construction engineering, residential interior decoration, real estate consulting, and brokerage services [1] - Shanghai Huaren Ruicheng Real Estate Co., Ltd. is wholly owned by Shanghai Xuzhen Enterprise Management Co., Ltd., which is a wholly-owned subsidiary of China Resources Land Limited [1]

Investment Rating - The report gives a "Buy" rating for China Resources Land (1109.HK) for the first time [6][9]. Core Views - China Resources Land is positioned as a leading urban investment and development operator with a comprehensive business model that integrates development, operational real estate, asset management, and light asset management [8][20]. - The company has shown resilience in revenue and profit growth, maintaining a strong financial structure with low financing costs [8][32]. - The company is expected to benefit from industry trends, with projected EPS for 2024-2026 at 3.83, 3.97, and 4.19 CNY respectively, corresponding to P/E ratios of 6.1, 5.8, and 5.5 [9][32]. Summary by Sections Company Overview - China Resources Land was established in 1994 and listed in Hong Kong in 1996, becoming a state-owned enterprise recognized for corporate governance in 2022 [16][18]. - The company operates in 85 cities across mainland China and Hong Kong, focusing on urban investment and development [16][18]. Business Model - The company has developed a "3+1" integrated business model, which includes development sales, operational real estate and asset management, and light asset management [20][22]. - As of 2024H1, the asset management scale reached 449.1 billion CNY, with a 5.1% increase from the previous year [22][23]. Financial Performance - In 2023, the company reported revenues of 251.1 billion CNY and a net profit of 31.4 billion CNY, reflecting year-on-year growth of 21.3% and 11.7% respectively [32][34]. - The gross profit margin for 2024H1 was 22.3%, with a net profit margin of 13% [35][41]. Sales and Market Position - The company focuses on first and second-tier cities, with sales amounting to 261.1 billion CNY in 2024, maintaining a market share of 2.7% [47][48]. - The average selling price of projects has increased by 28.1% from 2021 to 2024, outperforming the average increase of 23.8% among top 100 real estate companies [53]. Operational Strengths - The company has a strong competitive edge in product quality and land acquisition, with a well-structured land reserve of 47.71 million square meters as of 2024H1 [8][20]. - The operational real estate segment contributed significantly to the company's revenue, with rental income from shopping centers accounting for 82.7% of operational real estate revenue [26][29].

Group 1 - Shanghai China Resources Yueneng Real Estate Co., Ltd. has been established with a registered capital of approximately 4.7 billion yuan [1] - The company's business scope includes real estate development and operation, residential interior decoration, real estate consulting, real estate brokerage, property management, and housing leasing [1] - The company is jointly held by China Gezhouba Group's China Energy Construction Urban Investment Development Co., Ltd., China Resources Land's Shanghai Xuzhen Enterprise Management Co., Ltd., and Yuexiu Group's Hangzhou Yile Industrial Investment Co., Ltd. [1]

Core Viewpoint - The company reported a total revenue of approximately 32.0 billion yuan for the month, with a year-on-year growth of 52.4% and a month-on-month growth of 28.4% [1] Group 1 - The cumulative revenue for the year 2024 up to December is approximately 261.1 billion yuan, reflecting a year-on-year decrease of 15.0% and a month-on-month increase of 13.3% [1] - The total construction area for the month reached approximately 1.301 million square meters, marking a year-on-year increase of 52.4% and a month-on-month increase of 28.4% [1] - The total construction area for the year 2024 up to December is approximately 11.332 million square meters, with a year-on-year decrease of 15.0% and a month-on-month increase of 13.3% [1]

Core Viewpoint - The appointment of Xu Rong as the new president of China Resources Land marks a strategic shift towards urban renewal, addressing the company's growth challenges in a slowing real estate market [8][22][23]. Leadership Changes - Xu Rong joined China Resources Land in January 2023 as Vice President and will become Executive Director and member of the Executive Committee in October 2024 [1][11]. - The position of president has been vacant since Wu Bingqi's resignation in September 2023, and during this interim period, Li Xin, the Executive Director and Chairman, will assume the responsibilities of the president [3][10][23]. - Xu Rong is the first president of China Resources Land in nearly a decade not to have risen through the ranks of China Resources Group [18]. Business Strategy - China Resources Land is shifting its focus from traditional real estate development to urban renewal, which is seen as a necessary adaptation to current market conditions [14][20][22]. - The company aims to enhance its operational efficiency and value through a comprehensive approach to urban renewal, which includes planning, relocation, development, and operation [5][19]. - The urban renewal division operates under a "one main, multiple" business model, emphasizing area-based value creation and light asset management solutions [5]. Financial Performance - In the first half of the year, China Resources Land's core net profit from development and sales business was 5.22 billion yuan, a decrease of 19% year-on-year [6]. - The company reported a revenue of 59.13 billion yuan from development and sales, an increase of 8.3% year-on-year, while its operating real estate business generated 11.47 billion yuan, up 7.0% [13]. Market Position - Despite being a leading player in the real estate sector, China Resources Land is experiencing a slowdown in growth, prompting a reevaluation of its business model [8][14]. - The company has seen a decline in land acquisition momentum, with a reported 34.9 billion yuan in land purchases in the first 11 months of the year, significantly lower than the previous year's total of 80.8 billion yuan [21].

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company achieved a total sales of 229.1 billion yuan from January to November 2024, with a year-on-year decline of 19.9%, but the decline rate has narrowed compared to previous months, indicating a recovery trend in sales [1]. - The company is actively increasing its core land reserves, with a total land reserve area of 56.99 million square meters, of which over 70% is located in first- and second-tier cities [2]. - The asset management business is steadily growing, with a total asset management scale reaching 449.1 billion yuan, primarily driven by shopping centers [3]. Summary by Sections Sales Performance - The company ranked third in the "Top 100 Real Estate Companies" by total sales, improving its position from the previous year [1]. - The sales area reached 9.95 million square meters, with a year-on-year decline of 17.5% [1]. Land Acquisition - In the first half of 2024, the company added 2.02 million square meters of land reserves, with 87% of the investment in first- and second-tier cities [2]. - In October and November 2024, the company acquired 850,000 square meters of land in key cities, with a total land cost of 41.4 billion yuan [2]. Asset Management - The company operates 82 shopping centers with a total area of 10.45 million square meters, achieving a high occupancy rate of 97.3% [3]. - The operational revenue from the asset management business reached 38.7 billion yuan, reflecting a year-on-year growth of 13.1% [3]. Financial Forecast - The core EPS for 2024-2026 is projected to be 3.64, 3.72, and 3.88 yuan, respectively, with corresponding PE ratios of 6.0, 5.9, and 5.6 times [4].