WGQ(SH:600648) Guotai Junan Securities·2024-08-27 09:02Investment Rating - The investment rating for the company is "Accumulate" [2][4] Core Views - The company's performance in the first half of 2024 was under pressure due to the timing of property project handovers, but a significant improvement is expected in the second half of the year [3][4] - The company is expanding its quality property assets, indicating substantial long-term rental growth potential [3][4] Financial Summary - In the first half of 2024, the company reported revenue of 2.64 billion yuan, a year-on-year decline of 31.4%. Revenue from property management, trade and services, and real estate sales were 1.04 billion, 1.38 billion, and 50 million yuan, with year-on-year growth rates of +6.2%, -3.8%, and -96.2% respectively. The net profit attributable to shareholders was 140 million yuan, down 72.8% year-on-year [4] - The company maintains its EPS forecast for 2024-2026 at 0.88, 0.90, and 0.97 yuan, with a target price of 11.28 yuan [4] - The company expects a strong performance in the second half of 2024, driven by the handover of several residential projects [4] Market Data - The current stock price is 8.86 yuan, with a target price of 11.28 yuan [2][4] - The company's market capitalization is 10,059 million yuan [5] Asset and Liability Overview - The company's total assets are 46.38 billion yuan, with total liabilities of 33.02 billion yuan, resulting in a net asset value of 12.68 billion yuan [6][9] - The net debt ratio stands at 124.48% [6] Future Outlook - The company has plans for significant property updates and expansions, with a three-year plan for approximately 300,000 square meters of property updates from 2024 to 2026 [4] - The rental business is expected to continue growing, supported by improved gross margins in leasing operations [4]