Huafa Properties(600325) 兴业证券·2024-08-12 14:27Investment Rating - The report maintains a "Buy" rating for Huafa Co., Ltd. (华发股份) [2] Core Views - The company plans to acquire existing residential properties for a maximum amount of 12 billion yuan, which is expected to enhance its asset liquidity and financial strength [1][2] - The acquisition is part of a strategy to support the development of affordable housing and commercial rental properties, aligning with national housing policies [1] - The company has seen an increase in its sales ranking, moving up to 11th place in the industry, despite a year-on-year sales decline of 36.7% [2] Summary by Sections Acquisition Details - The company intends to engage in transactions involving existing residential properties and associated parking spaces, with a transaction cap of 12 billion yuan [1] - The properties involved include those that meet pre-sale conditions, and the final transaction price will be determined based on an asset appraisal [1] Financial Performance - As of the first seven months of 2024, the company reported sales of 53.61 billion yuan, reflecting a 36.7% decrease year-on-year [2] - The company holds approximately 238,000 square meters of undeveloped land and 934,000 square meters under construction in Zhuhai, with an estimated total value of 40.4 billion yuan, which could cover the acquisition limit [2] Future Outlook - The acquisition is expected to alleviate inventory pressure in Zhuhai and strengthen the company's financial capabilities for future expansion [2] - The company forecasts earnings per share (EPS) of 0.73 yuan and 0.82 yuan for 2024 and 2025, respectively, with corresponding price-to-earnings (PE) ratios of 8.2 and 7.3 times [2]