PDH(SH:600048) Guotai Junan Securities·2024-08-19 15:06Investment Rating - The investment rating for the company is "Buy" with a target price of 12.19, unchanged from the previous rating [1]. Core Insights - The company's revenue for the first half of 2024 reached 139.2 billion, a year-on-year increase of 1.6%, while the net profit attributable to shareholders was 7.4 billion, a decrease of 39.3% compared to the previous year [2][7]. - The profit margin is currently in a downward trend, but it is expected to stabilize as housing prices recover and the equity ratio of land acquisition improves [2][7]. - The company plans to issue convertible bonds not exceeding 9.5 billion to support long-term capital needs and project funding [2][7]. Financial Performance - The company achieved a gross profit margin of 16.0% in the first half of 2024, down from 21.3% in the same period of 2023, maintaining consistency with the full-year level of 2023 [7]. - The net profit margin decreased from 8.9% in 2023 to 5.3% in the first half of 2024 due to market downturns and pressure on prices [7]. - The company has maintained a land acquisition equity ratio above 90% in 2024, which is expected to improve profit margins as housing prices stabilize [7]. Inventory and Land Management - The company's land reserve area decreased by 8% to 71.4 million square meters compared to the beginning of the year, with a focus on optimizing the structure of land reserves [7]. - The company is actively responding to policies for revitalizing existing land resources and is engaged in land regulation and exchange in multiple cities [7]. Future Outlook - The company maintains earnings per share (EPS) forecasts of 0.95, 1.01, and 1.10 for 2024 to 2026, respectively, reflecting a cautious outlook amid current market conditions [7][8]. - The issuance of convertible bonds is expected to enhance the company's capital structure and investor confidence in the long term [7].