CMSK(001979) 贝壳财经·2025-03-27 07:45Core Viewpoint - In the first full fiscal year under Chairman Jiang Tiefeng, China Merchants Shekou delivered a report card of "increased revenue but decreased profit," with a slight revenue increase of 2.25% to approximately 178.9 billion yuan, while net profit plummeted by 36% to about 4.04 billion yuan [1][3]. Financial Performance - In 2024, China Merchants Shekou reported operating revenue of 178.95 billion yuan, a year-on-year increase of 2.25%, but the net profit attributable to shareholders fell by 36.09% to 4.04 billion yuan [3][4]. - The company's gross profit margin decreased to 14.61% from 15.89% in the previous year, with significant asset impairment provisions totaling 6.03 billion yuan, far exceeding the net profit [6][7]. - Key profitability indicators declined, with net profit margin dropping from 5.20% at the end of 2023 to 2.34%, and the weighted average return on equity falling from 6.04% to 3.36% [4][5]. Strategic Adjustments - In response to the changing real estate market, China Merchants Shekou has adjusted its land acquisition strategy, reducing the number of land parcels acquired from 55 in 2023 to only 26 in 2024, a decrease of 52.7% [9][10]. - The company has shifted its investment focus from 70 cities to 30 cities, and further narrowed down to 10 core first- and second-tier cities, with 90% of investment in these key areas [10][11]. Land Acquisition and Market Position - Despite the reduction in land acquisition, China Merchants Shekou has been aggressively competing for high-value land parcels, often at high premiums, indicating a strategy of "conservative yet aggressive" [2][11]. - In March 2024, the company acquired a land parcel in Shanghai for 2.66 billion yuan, with a floor price of approximately 31,900 yuan per square meter, reflecting a 30% premium [12]. - The company also secured a land parcel in Chengdu for 2.7 billion yuan, with a premium rate of 70.4%, setting a new record for floor prices in the city [12][13]. Future Outlook - The company anticipates a total saleable value of 325 billion yuan for 2025, with 79% of this being residential projects, primarily located in strong urban areas [19]. - Chairman Jiang Tiefeng emphasized the importance of maintaining cash flow and strategic land acquisition to ensure the company's survival and growth amid market challenges [20]. - The focus on core cities aligns with industry trends, but profit recovery will depend on sustained sales performance, with potential risks from high land acquisition costs and market conditions [20].