Ge Long Hui·2025-08-30 04:11Core Viewpoint - The company reported its 2025 first-half performance, with net profit attributable to shareholders at 8.6 billion yuan, and core net profit at 8.78 billion yuan, reflecting a year-on-year decline of 17.5%, which aligns with market expectations [1] Financial Performance - The company maintained a robust financial position, with sales and other operating cash inflows of approximately 96.9 billion yuan and capital expenditures of about 83.7 billion yuan, resulting in positive operating cash flow [2] - As of the end of the first half of 2025, the company had cash on hand of approximately 108.7 billion yuan, with a cash-to-short-term debt ratio of 4.9 times, a decrease of about 15.2 billion yuan from the end of 2024 [2] - The company's debt level decreased by approximately 14.1 billion yuan, with a debt-to-asset ratio of 53.7% and a short-term debt ratio reduced to 7.6% [2] Sales and Investment - The company achieved contract sales of approximately 120 billion yuan in the first half of the year, a year-on-year decline of about 19%, with first-tier cities and Hong Kong accounting for about 46% of total sales [1] - The company’s land acquisition amount reached 40.11 billion yuan, with a monthly investment of 14.9 billion yuan in July, maintaining the industry’s leading position in cumulative investment [1] Commercial Property Operations - The company reported commercial property revenue of 3.54 billion yuan in the first half, with shopping center revenue at 1.17 billion yuan, and a rental rate of 96.2% for mature projects [2] - The company is progressing with the issuance of its first public REITs focused on consumer infrastructure, which may provide new avenues for asset value release [2] Development Outlook - The company provided a stable outlook for 2025, indicating potential positive signals in investment activities in the second half of the year, with expectations of significant urban renewal projects in key first-tier cities [2] - The company anticipates that the total equity investment may exceed the initial guidance of 100 billion yuan for the year, supporting future sales and profit stability [2] Profit Forecast and Valuation - The profit forecast remains unchanged, with core profit expected to be 15 billion yuan in 2025, reflecting a year-on-year decline of 4.3%, and 16 billion yuan in 2026, indicating a year-on-year increase of 6.5% [3] - The target price has been raised by 10% to 17.2 HKD per share, corresponding to 0.45 times the 2025 price-to-book ratio, suggesting a 25% upside potential compared to the current stock price [3]