Core Viewpoint - In the first half of 2025, Greentown China experienced a significant decline in revenue and net profit, primarily due to delivery schedules and asset impairments [1][2]. Financial Performance - Revenue for the first half of 2025 was 53.37 billion yuan, a year-on-year decrease of 23.3% [1]. - Net profit was 1.21 billion yuan, down 63.5% year-on-year, with profit attributable to shareholders at 210 million yuan, a decline of 89.7% [1]. - The company recorded a credit impairment of 220 million yuan and a non-financial asset impairment of 1.72 billion yuan, impacting profit margins [1]. Financial Condition - As of June 30, 2025, Greentown China had cash reserves of 66.8 billion yuan, which is 2.9 times the amount of short-term borrowings due [1]. - The proportion of short-term debt decreased to 16.3%, the lowest in history, while the total weighted average interest cost of borrowings was 3.6%, down 40 basis points year-on-year [1]. - The company successfully issued 500 million USD in three-year senior notes, marking it as the first property company to restart financing in US dollar bonds [1]. Land Acquisition - In the first half of 2025, Greentown China actively acquired land, adding 35 projects with a total construction area of 3.55 million square meters and an estimated saleable value of 90.7 billion yuan, ranking third in the industry [1]. - Approximately 88% of the newly added saleable value was concentrated in first- and second-tier cities [1][2]. Sales Performance - The total sales for the first half of 2025 reached 122.2 billion yuan, positioning Greentown China as the second in the industry [2]. - Self-invested project sales amounted to 80.3 billion yuan, while equity sales were 53.9 billion yuan, ranking fifth in the industry [2]. - The average selling price for self-invested projects was approximately 34,984 yuan per square meter, with a collection rate of 96% [2]. Investment Recommendation - The company has been given a "Buy-A" investment rating with a target price of 11.7 HKD over the next six months, based on a projected price-to-book ratio of 0.73 for 2025 [2]. - Revenue growth rates are expected to be -15.4%, -9.4%, and -0.6% for 2025 to 2027, while net profit growth rates are projected at -3.3%, 28.8%, and 26.7% respectively [2].
绿城中国(03900.HK)：经营稳健 拿地结构持续优化