CHINA OVERSEAS(HK:00688) Guotai Junan Securities·2024-07-10 01:31Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - In June 2024, the company's sales area showed significant improvement, with luxury projects in first-tier cities driving sales revenue and average prices to historical highs. The company adopted a cautious approach to land acquisition, resulting in a land acquisition-to-sales ratio of only 0.09 [5][6]. Summary by Sections Sales Performance - In June 2024, the company achieved a cumulative sales revenue of 148.4 billion RMB, a year-on-year decline of 17.6%. However, June's sales revenue reached 46.7 billion RMB, marking a year-on-year increase of 40.6%. The improvement in June's sales is attributed to changes in the sales structure, similar to the logic observed in March [6]. - The average selling price in June increased by 32.1% year-on-year and 63.2% month-on-month, reaching 31,740 RMB per square meter, the second-highest since 2020. This increase was primarily driven by high-priced luxury properties, which accounted for over 60% of total sales [6]. Land Acquisition - The company has significantly slowed its land acquisition pace, with a land acquisition-to-sales ratio of 0.09 in the first half of 2024. A total of six new land reserves were added, corresponding to a total equity construction area of 1.15 million square meters and land transfer fees of 12 billion RMB [6]. - Compared to 2023, the land acquisition-to-sales ratio has dropped sharply from 0.50 to 0.09, indicating a more cautious investment strategy [6]. Financial Projections - The report maintains earnings per share (EPS) projections for 2024-2026 at 2.41 RMB, 2.62 RMB, and 2.89 RMB, respectively [6].