LONGFOR GROUP(00960) 国盛证券·2024-08-28 13:16Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company's performance in the first half of 2024 was impacted by its development business, leading to a year-on-year decline in revenue and net profit. Maintaining liquidity is the top priority [3] - The company has effectively covered its debt due within the next year with available cash, despite a decrease in total interest-bearing debt [3] - The operational and service segments are increasingly contributing to the company's performance, with a notable growth in revenue from these areas [3] Financial Performance Summary - In H1 2024, the company reported revenue of 46.86 billion yuan, a decrease of 24.5% year-on-year, and a net profit of 5.87 billion yuan, down 27.2% year-on-year [3] - The overall gross margin was 20.6%, down 1.8 percentage points year-on-year, with the development business gross margin under pressure at 7.4% [3] - The company's sales continued to face challenges, with total sales amounting to 51.12 billion yuan, a decline of 48.1% year-on-year [3] Debt and Liquidity Management - As of August 23, 2024, the company had a cash balance of 50.06 billion yuan, which effectively covers its debt due within the next year [3] - The company’s interest-bearing debt decreased by 9.5% year-on-year to 187.42 billion yuan, with a net debt ratio of 56.7% [3] Operational Highlights - The company opened three new shopping malls in H1 2024, achieving a total operational area of 8.29 million square meters with a rental rate of 96% [3] - Rental income from shopping malls reached 5.32 billion yuan, an increase of 6.2% year-on-year, while the rental income from its rental apartments also grew by 6.5% [3] Future Earnings Forecast - The company’s revenue is projected to be 163.53 billion yuan, 154.84 billion yuan, and 147.71 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 10.98 billion yuan, 10.35 billion yuan, and 9.95 billion yuan [3][4]