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].

Core Viewpoint - Shenzhen has witnessed a significant residential land auction, with a record-breaking transaction price, indicating strong demand and a shift in land sale policies that favor developers [1][2][4] Group 1: Land Auction Details - The T107-0107 plot in Shenzhen's Nanshan District was auctioned with a starting price of 12.65 billion yuan and was ultimately sold for 18.512 billion yuan, setting a new record for residential land sales in Shenzhen [2] - The final floor price was 70,388 yuan per square meter, with a premium rate of 46.3% [2] - The auction process involved nearly 300 rounds of bidding, reflecting high interest from real estate companies despite the high entry threshold [2] Group 2: Policy Changes and Market Trends - Recent changes in land sale policies have removed several restrictions, allowing developers to set their own prices for residential properties without limitations from the "90/70" policy [2][3] - Major cities like Beijing, Guangzhou, and Shenzhen are experiencing a surge in large land sales exceeding 10 billion yuan, with developers given autonomy in pricing [2] - The demand for high-quality projects is increasing, as evidenced by the strong sales performance of major developers like China Overseas Land & Investment in key cities [3] Group 3: Market Activity and Sales Performance - The real estate market in Shenzhen is showing signs of recovery, with November seeing over 8,000 new and second-hand homes sold, marking significant year-on-year growth [3][4] - New home sales reached 8,734 units, a month-on-month increase of 86.8% and a year-on-year increase of 158.9%, the highest since February 2021 [3] - The increase in sales activity is attributed to the release of pent-up demand following recent policy optimizations [4]

Financial Performance - For the first half of 2024, the Group achieved a revenue of RMB 79.13 billion, representing a year-on-year growth of 8.4%[6] - The core net profit reached RMB 10.74 billion, a slight decrease of 4.7% compared to the previous year[6] - Recurring business revenue increased by 9.0% year-on-year, accounting for 25.3% of total revenue, an increase of 0.2 percentage points[6] - The core net profit from recurring business grew by 14.4% year-on-year, contributing 51.4% to total core profit, an increase of 8.6 percentage points[6] - The interim dividend per share is RMB 0.2, reflecting a year-on-year increase of 1.0%[6] - In 1H2024, the Group achieved total comprehensive revenue of RMB79.13 billion, a YoY increase of 8.4%[26] - The core net profit for the same period was RMB10.74 billion, reflecting a YoY decrease of 4.7%[26] - Recurring revenue increased by 9.0% YoY, accounting for 25.3% of total revenue, up by 0.2 percentage points YoY[26] - The core net profit of the recurring business rose by 14.4% YoY, with its profit contribution increasing by 8.6 percentage points YoY to 51.4%[26] Market and Economic Context - The national GDP of the PRC reached RMB 61.7 trillion in the first half of 2024, with a year-on-year growth of 5.0%[6] - National sales of residential properties amounted to RMB 4.7 trillion, showing a year-on-year decrease of 25.0%[6] - The total retail sales of consumer goods increased by 3.7% year-on-year, with service sales growing by 7.5%[6] - The overall performance of the Group outpaced the industry trend[6] Property and Rental Performance - In 1H2024, the Group's shopping mall rental income reached RMB 9.48 billion, a YoY increase of 9.7%[8] - The Group's 82 operating shopping malls achieved retail sales of RMB 91.62 billion, reflecting a YoY increase of 21.9%, with 69 malls ranking among the top three in their local markets[8] - The overall occupancy rate for the Group's office buildings was 75.0%, serving 120 Fortune 500 clients[8] - Revenue from the investment property business reached RMB 11.47 billion, up by 7.0% YoY[31] - Revenue from shopping malls was RMB 9.48 billion, representing a 9.7% YoY increase, with an occupancy rate of 97.3%, up by 1.1 percentage points YoY[31] Business Segments and Operations - CR Mixc Lifestyle achieved revenue of RMB 7.96 billion, a YoY increase of 17.1%, and core net profit of RMB 1.77 billion, a YoY increase of 24.2%[10] - The commercial management business maintained its industry-leading position, managing a total of 108 operating shopping malls[10] - The property management business expanded its managed area to 398 million square meters and contracted area to 446 million square meters[10] - The total number of MIXC STAR members exceeded 52.20 million, an increase of 13% compared to the end of last year[10] - The total amount of MIXC STAR points issued increased by 19% YoY to RMB 500 million, while the total amount of points redeemed increased by 21% YoY to RMB 340 million[10] Sales and Contracted Performance - In 1H2024, the Group achieved contracted sales of RMB124.70 billion, maintaining its industry ranking at fourth and top 5 market share in 20 cities[15] - Contracted sales in 1H2024 amounted to RMB124.70 billion, a decrease of 26.7% year-on-year, with contracted GFA down by 25.7% to 5.21 million square meters[41] - The Group's total contracted sales in the Shenzhen region were RMB16.02 billion, accounting for 12.8% of total contracted sales[42] - The East China region contributed RMB37.93 billion to contracted sales, representing 30.4% of the total[42] Financial Management and Costs - The Group's comprehensive financing cost was 3.24%, a decrease of 32 basis points from the beginning of the year, marking a historical low[17] - The Group's share of profits from investments in associates and joint ventures totaled RMB1.42 billion, a decrease of RMB0.53 billion YoY[30] - Income tax expenses increased by 16.3% YoY to RMB8.14 billion, with enterprise income tax expenses rising by 10.3% to RMB6.19 billion[30] - The Group's net interest-bearing debt-to-equity ratio was 33.6% as of June 30, 2024, an increase of 1.0 percentage point from 32.6% at the end of 2023[50] - The Group maintained a weighted average financing cost of approximately 3.24% as of June 30, 2024, down 32 basis points from 3.56% at the end of 2023[54] Corporate Governance and Compliance - The Company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code as its own[115] - The Company deviated from Code Provision C.2.1 of the Corporate Governance Code, as the roles of chairman and chief executive were not separated following the resignation of the President on September 28, 2023[115] - The Company has complied with the Corporate Governance Code provisions in force for the first half of 2024, except for the noted deviation[115] Dividend and Shareholder Information - The Company declared an interim dividend of RMB0.20 per share for the six months ended June 30, 2024, equivalent to HKD0.219 per share, compared to HKD0.216 per share in 2023[116] - The interim dividend will be payable on October 25, 2024, to shareholders listed on the register as of September 11, 2024[116] - Shareholders must submit completed dividend currency election forms by October 7, 2024, to receive dividends in RMB[118] Audit and Financial Reporting - The Company’s independent auditor, KPMG, reviewed the unaudited condensed consolidated financial information for the six months ended June 30, 2024, with no disagreements noted[116] - The interim financial report for China Resources Land Limited as of June 30, 2024, has been reviewed and found to comply with Hong Kong Accounting Standard 34[125] - The review was conducted by KPMG, ensuring the integrity of the financial reporting process[128] Investment Properties and Assets - The total carrying value of the Group's offices was RMB36.43 billion, accounting for 3.0% of total assets, with a total GFA of 1.36 million square meters, an increase of 7.7% YoY[31] - The total value of completed investment properties was RMB 195,889,424, while investment properties under construction amounted to RMB 58,786,868[177] - The Group measures its investment properties at fair value, with valuations conducted by independent and professionally qualified valuers at least every six months[179] Employee and Management Information - The Group had a total of 61,826 employees in mainland China and Hong Kong as of 30 June 2024[60] - Performance bonuses are granted on a discretionary basis, alongside other employee benefits including provident funds, insurance, and medical plans[60]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 34, representing a potential upside of 65.8% from the current price of HKD 21.0 [1][2]. Core Insights - The company experienced a 4.7% year-on-year decline in core net profit for H1 2024, with total revenue reaching RMB 79.1 billion, an 8.4% increase compared to the previous year. The development business revenue was RMB 59.1 billion, up 8.3%, while recurring business revenue grew by 9.0% to RMB 20 billion, accounting for 25.3% of total revenue [1][2]. - The company’s sales performance showed resilience despite a 26.7% decline in sales revenue to RMB 124.7 billion, with a 69% equity ratio. The average selling price decreased by 1.4% to RMB 23,930 per square meter, but the company maintained a strong market position, ranking among the top four in the industry [1][2]. - The recurring business's profit contribution increased to 51.4%, becoming a significant growth driver for the company. The shopping center segment saw a 21.9% increase in retail sales, with a 30% rise in rental income [1][2]. Financial Performance Summary - For H1 2024, the company reported a gross margin of 25.2%, down 1 percentage point year-on-year, primarily due to a 4.6 percentage point decline in the development business gross margin to 12.4%. The net profit attributable to shareholders decreased by 25% to RMB 10.2 billion [1][2]. - The company’s financial structure remains robust, with a cash-to-short-term debt ratio of 1.54 and a total interest-bearing debt ratio of 38.9%. The average financing cost decreased by 32 basis points to 3.24%, positioning the company among the lowest in the industry [1][2]. - The company’s asset management scale increased by 5.1% to RMB 449.1 billion, supporting its value release and business transformation in the evolving industry landscape [1][2].

Stock Data and Market Performance - The closing price of the stock on September 4th was HKD 20.65, with a 52-week price range of HKD 19.39-35.50 [1] - The total market capitalization is HKD 147.3 billion, with 7,131 million shares outstanding [1] - In H1 2024, the company reported revenue of RMB 79.13 billion, a YoY increase of 8.4%, but net profit attributable to shareholders decreased by 25.4% YoY to RMB 10.25 billion [1][7] - The gross profit margin was 22.3%, down 3.4 percentage points YoY, primarily due to lower margins in development and sales business [1][7] - As of June 2024, the company had cash and bank balances of RMB 118.33 billion, a 3.5% increase from the end of 2023 [1][7] Business Segments Performance Development and Sales Business - The company achieved contracted sales of RMB 124.7 billion in H1 2024, ranking fourth in the industry, with top-five market share in 20 cities [5][9] - The company focused on strategic investments in core cities and prime locations, acquiring multiple strategic projects [9] Commercial Property Business - Shopping center rental income reached RMB 9.48 billion in H1 2024, a 9.7% YoY increase [5][10] - Retail sales in 82 operating shopping centers totaled RMB 91.62 billion, up 21.9% YoY, with 69 centers ranking in the top three locally [5][10] - Six new shopping centers opened with a leasing rate of 97.8%, and two new shopping center sites were acquired in Beijing and Dalian [5][10] Light Asset Management Business - CR Mixc Lifestyle achieved revenue of RMB 7.96 billion in H1 2024, a 17.1% YoY increase, with core net profit of RMB 1.77 billion, up 24.2% YoY [3][10] - The company managed 108 shopping centers, including 13 luxury malls, and had a total managed area of 398 million square meters [3][10] - The Mixc Star membership program reached 52.2 million members, a 13% increase from the end of 2023 [3][10] Ecosystem Business - Urban construction business generated revenue of RMB 390 million, with 358 projects under management, ranking second in new government construction contracts [5][10] - Rental housing business achieved revenue of RMB 380 million, with 62 projects under management, ranking eighth in the industry [5][10] - CR Youchao REIT reported revenue of RMB 39.31 million, a 1.5% YoY increase, and EBITDA of RMB 24.6 million, up 4.3% YoY [5][10] Financial Forecasts and Valuation - The company is expected to achieve revenue of RMB 268.77 billion in 2024, with a net profit of RMB 26.54 billion [6][12] - The 2024 EPS is forecasted at RMB 3.72, with a PE valuation of 10-11x, implying a market cap range of HKD 289.9-318.9 billion and a fair value range of HKD 40.65-44.71 per share [5][12] - The gross profit margin is expected to be 22.15% in 2024, with a net profit margin of 9.87% [6][14] - ROE is projected to be 9.44% in 2024, with a net debt ratio of 25.25% [14]

Investment Rating - The report maintains a "Buy" rating for China Resources Land (01109.HK) with a target price of HKD 29.77, compared to the current price of HKD 21.05 [4]. Core Insights - Development profit margins are under pressure, but recurring business serves as a stable foundation. For the first half of 2024, the company achieved revenue of CNY 79.13 billion, up 8.4% year-on-year, while net profit attributable to shareholders was CNY 10.25 billion, down 25% [2][9]. - The sales structure has improved, with the top ten cities contributing over 60% of sales. The sales amount for the first half of 2024 was CNY 124.7 billion, down 27% year-on-year, with a sales price of CNY 24,000 per square meter, down 1% [2][16]. - Investment is focused on high-tier cities, with two new comprehensive projects acquired. The company spent CNY 25.6 billion on land acquisition in the first half of 2024, with a land acquisition ratio of 72% [2][19]. - Operating real estate shows stable improvement in operational efficiency. The income from investment properties was CNY 11.47 billion, up 7% year-on-year, with a total operating area of 12.59 million square meters, up 23.9% [2][21]. Summary by Sections Financial Performance - For the first half of 2024, the company reported total revenue of CNY 79.13 billion, with a core net profit of CNY 10.74 billion, reflecting a core net profit margin of 13.6% [2][9]. - The development business's gross profit margin was 12.4%, while the recurring business's gross profit margin was 71.5% [12][21]. Sales Analysis - The total sales amount for the first half of 2024 was CNY 124.7 billion, with a year-on-year decrease of 27%. The equity sales amount was CNY 86 billion, down 32% [2][16]. - The contribution from first-tier cities was 38%, and the top ten cities accounted for 65% of total sales [2][16]. Land Acquisition and Projects - The company acquired 11 projects in the first half of 2024, with a total land acquisition cost of CNY 25.6 billion [2][19]. - The static gross profit margin for land acquisition was 34.1%, slightly higher than the previous year [2][19]. Investment Properties - The income from investment properties was CNY 11.47 billion, with a gross profit margin of 71.5% [2][21]. - The retail sales in shopping centers reached CNY 91.6 billion, up 22% year-on-year, indicating strong performance despite rental pressure [2][21].

Investment Rating - The report maintains an "Accumulate" rating for China Resources Land (1109) [2][5]. Core Views - In the first half of 2024, the company experienced revenue growth without profit increase, with a gross margin still in a downward trend. The development and sales business faced temporary pressure, while the recurring income business showed steady improvement, contributing over 50% to core net profit [4][5]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 79.13 billion RMB, a year-on-year increase of 8.4%, while net profit attributable to shareholders was 10.25 billion RMB, down 25.4% year-on-year. The gross margin decreased by 3.4 percentage points to 22.3% [5]. - The development and sales business generated revenue of 59.13 billion RMB, up 8.3% year-on-year, accounting for 74.7% of total revenue. The company expects to settle 166.12 billion RMB in the second half of the year, aiming for a total settlement revenue of 225.25 billion RMB for the year, a 6.2% increase year-on-year [5]. - The recurring income business saw revenue rise by 9% to 20 billion RMB, contributing 5.52 billion RMB to core net profit, a 14.4% increase year-on-year [5]. Business Segments - The gross margin for the development and sales business fell by 4.6 percentage points to 12.4%, while the operating real estate business's gross margin increased by 0.2 percentage points to 71.5% [5]. - The company maintained a strong market position, ranking fourth in sales amount with a 26.7% year-on-year decline to 124.7 billion RMB, while maintaining a top-five market share in 20 cities [5]. Future Outlook - The company has accumulated land reserves of 4.7712 million square meters, with a corresponding value of 1,141.71 billion RMB based on the average selling price of 24,000 RMB per square meter in the first half of the year, indicating ample future performance release potential [5]. - The financial health remains robust, with a comprehensive financing cost of 3.24% in H1 2024, down 32 basis points from the beginning of the year [5].

华润置地（01109.HK） 做优经营性不动产业务，加速大资管转型步伐 1）不动产打造第二增长曲线，逆势中营收仍显亮色。2024H1 公司实现营 业额 791.3 亿元，同比增长 8.4%。其中，开发销售型业务营业额为 591.3 亿元，同比增长8.3%；经常性收入合计营业额200.0亿元，同比增长9.0%， 占比达 25.3%。经营性不动产业务方面，公司已然成为内资商业运营引领 者，以"万象系"购物中心为代表的投资物业为公司业绩增长贡献新动能， 既能有力支持主营业务获取资源产生协同效益，又能自主盈利贡献长期稳 定现金流，同时亦是公司估值差异化体现所在；2024H1 经营性不动产中 的购物中心/写字楼/酒店分别实现租金收入 95/9.5/10.4 亿元；其中购物 中心上半年如期开业 6 家，旗下在营购物中心已达 82 家，实现零售额（同 比+21.9%至 916 亿元）及出租率（较年底+0.8pct 至 97.3%）双增长。 2）开发毛利率承压，核心净利润稳健。上半年公司综合毛利率 22.3%； 其中开发业务毛利率受行业下行影响同比-4.6bp 至 12.4%，不动产业务 毛利率同比+0.2bp 达 71.5 ...