SHUI ON LAND(HK:00272) Xin Lang Cai Jing·2025-08-30 13:08Core Viewpoint - The real estate adjustment is ongoing, creating uncertainty, but the company managed to maintain profitability in the first half of 2025, which is considered challenging [1] Financial Performance - In the first half of 2025, Ruian recorded revenue of 2.074 billion yuan, unchanged year-on-year; profit was 81 million yuan, down 56% [1] - Shareholders' profit was 51 million yuan, a decrease of 29% year-on-year; core profit, excluding investment property fair value impairment, increased by 144% to 263 million yuan [1] - Contract sales amounted to 3.473 billion yuan, a 457% increase compared to the same period last year, with residential sales contributing 3.29 billion yuan [1] Sales and Projects - The growth in contract sales was primarily driven by the pre-sale of 9 row houses in the Shanghai Cuihu Tiandi project, totaling 6,124 square meters [1] - The company has locked in a total sales amount of 17.521 billion yuan, expected to be delivered to customers in the second half of 2025 and beyond [1] - Upcoming projects include residential properties in Shanghai and Wuhan, with a total construction area of approximately 131,000 square meters [1] Market Outlook - As of June 30, 2025, the residential saleable value held by Ruian and its joint ventures was 48.6 billion yuan, with Ruian's equity value at 24.9 billion yuan [2] - The company remains optimistic about the sales prospects of the final phase of the Wuhan Tiandi residential project, expected to open in Q4 2025 [2] - Ruian continues to focus on first-tier cities, particularly Shanghai, where the high-end residential market remains attractive due to the influx of high-quality talent [2] Strategic Initiatives - The company is adopting a light-asset model to expand its business scale and land reserves through external capital and strategic partnerships [3] - Recent collaborations include a joint venture with Tianan Group for residential land acquisition in Shanghai and a management service project with Yongye Group [3] - Ruian is also collaborating with the Shanghai Fengxian District government on the Beigang City project, which includes approximately 326,000 square meters of residential space [4] Rental Income and Market Conditions - Rental and related income totaled approximately 1.781 billion yuan, a 1% year-on-year increase; however, excluding joint venture income, it decreased by 23% to about 965 million yuan [4] - The decline in rental income is attributed to the restructuring of equity in the Chuangzhi Tiandi project, which affected income classification [4] - The office market in Shanghai is expected to face significant pressure in the next one to two years, prompting the company to adopt flexible rental strategies [5] Future Perspectives - The company believes that the market is in a bottoming process and expects stability in the real estate market, with potential investment opportunities in Shanghai despite uncertainties [5]