Ge Long Hui·2025-07-05 18:16Core Viewpoint - The company is focused on debt management and operational performance, with a clear plan for debt repayment by 2025, aiming to reduce interest-bearing liabilities to approximately 140 billion yuan by the end of 2025 [1][2]. Debt Management - The company has effectively reduced interest-bearing liabilities by over 30 billion yuan in the past two years, with a projected decrease to 176.3 billion yuan by the end of 2024, reflecting a year-on-year reduction of 9% [2]. - The net debt ratio stands at 52%, with an asset-liability ratio of 57% after excluding advance receipts [2]. - The company is transitioning its debt structure by replacing short-term credit bonds with long-term financing from operational properties, leading to a financing cost reduction of 0.24 percentage points to 4.0%, the lowest in five years [2]. Operational Performance - The company’s operational business revenue reached 11.02 billion yuan from January to May, showing continuous growth year-on-year [1]. - The operational and service revenue is projected to be 26.7 billion yuan in 2024, a year-on-year increase of 7%, contributing 70% to the gross profit [3]. - The company is focusing on inventory reduction while enhancing its operational business to support overall profitability, with commercial revenue growth of approximately 20% and daily customer traffic growth exceeding 25% [3]. Financial Projections - The company has adjusted its net profit forecasts for 2025-2027 to 7.92 billion yuan, 8.15 billion yuan, and 8.51 billion yuan respectively, down from an earlier estimate of 9.89 billion yuan for 2025 [3]. - A price-to-earnings (PE) valuation of 8x is assigned for 2025, corresponding to a target price of 10.24 HKD [3].