Investment Rating - The report assigns a rating of "Accumulate" for China Overseas Macro Group (0081) [2][5]. Core Views - The company is focusing on a differentiated strategy in low-tier cities, which has shown positive results in the first half of 2024, despite the ongoing industry adjustment [4][5]. - The company's revenue for the first half of 2024 was 21.85 billion RMB, with a net profit of 880 million RMB, reflecting year-on-year declines of 19.6% and 48.5% respectively [5]. - The gross profit margin for the first half of 2024 was 9.6%, down 6.7 percentage points year-on-year, primarily due to a decline in the gross profit margin of the development business [5]. - The company aims to enhance its market share and influence in key cities, with sales in 21 of the 40 targeted cities ranking in the top three locally, indicating an increase in market share [5]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a revenue of 21.85 billion RMB and a net profit of 880 million RMB, with year-on-year decreases of 19.6% and 48.5% respectively [5]. - The gross profit margin was 9.6%, a decline of 6.7 percentage points year-on-year, with the development business gross margin dropping to 9.3% [5]. - The average selling price decreased by 3.8% to 12,500 RMB per square meter, which is less than the national average decline of 6.3% [5]. Strategic Focus - The company is strategically focusing on 40 low-tier cities, with positive outcomes in market share in key cities [5]. - The sales amount for the first half of 2024 was 19.02 billion RMB, down 26.7%, but the decline was less than the overall drop of 41.8% for the top 50 real estate companies [5]. - The company has adopted a cautious investment approach, acquiring only three new land parcels with a total equity land price of 1.39 billion RMB [5]. Financial Health - The company maintains a low average financing cost of 4.3% and has reduced its proportion of interest-bearing debt in HKD and USD to 24%, down 8.6 percentage points from the end of 2023 [5]. - As of the end of June, the company had land reserves of 15.834 million square meters, with an equity ratio of 82.4%, corresponding to a value of 197.93 billion RMB and a depletion cycle of approximately 5.2 years [5].
中国海外宏洋集团：2024年中期业绩点评：坚定聚焦，挖掘结构性机会