PDH(SH:600048) Di Yi Cai Jing·2025-10-24 00:44Core Viewpoint - Poly Developments reported a significant quarterly loss despite maintaining its position as the top sales performer in the industry, highlighting the challenges faced due to market fluctuations and inventory pressures [2][3]. Financial Performance - In the first three quarters of the year, Poly Developments achieved a contract amount of 201.73 billion yuan, a year-on-year decrease of 16.53%, and a signed area of 10.10 million square meters, down 25.13% [2]. - The company reported a revenue of 56.87 billion yuan in the third quarter, a year-on-year increase of 30.65%, but a total profit of -60.08 million yuan, a decline of 102.37%, and a net profit attributable to shareholders of -782 million yuan, down 299.19% [2]. - The trend of declining profitability has persisted since 2021, with net profit attributable to shareholders decreasing from 27.39 billion yuan in 2021 to 5.00 billion yuan in 2024, reflecting a continuous decline over four years [3]. Inventory and Market Conditions - The company faces significant pressure from existing inventory, which has hindered profitability improvements despite ongoing investments in new projects [4]. - To address inventory issues, Poly Developments has adopted a strategy of price reductions in various cities, which has negatively impacted profit margins [4]. - The management indicated that there may be potential impairments on certain finished products due to current market conditions, leading to provisions for impairment based on testing results [4]. Investment Strategy - Poly Developments is focusing on optimizing its sales and profit structure through investments in high-quality land in core urban areas, with 51% of new investments located in key regions of first-tier cities [5]. - The company has 549 ongoing and planned projects, with a total construction area of 44.83 million square meters and a planned development area of 45.16 million square meters [5]. - Analysts maintain a positive outlook for Poly Developments, citing its strong financing advantages and focus on core cities, which are expected to improve profit margins as land acquisition gross margins recover [5].