YUEXIU PROPERTY(HK:00123) Ping An Securities·2024-08-28 23:38Investment Rating - The report maintains a "Recommended" investment rating for the company [2][4]. Core Views - The company achieved a revenue of 35.34 billion yuan in H1 2024, representing a year-on-year growth of 10.1%. However, the net profit attributable to shareholders decreased by 15.9% to 1.83 billion yuan [3][4]. - The decline in profit is attributed to a drop in gross margin by 4.1 percentage points and a decrease in the proportion of settlement rights [4]. - The company maintains a stable dividend payout ratio of 40% of core net profit, emphasizing shareholder returns [4]. - The company has a total salable value of approximately 270 billion yuan and is actively optimizing operations to achieve annual sales targets despite industry adjustments [4]. - The company added 12 land parcels in H1 2024, with a total construction area of 1.72 million square meters, and 88% of the new land reserves are located in first-tier and key second-tier cities [4]. - The company’s financial health remains robust, with an average borrowing cost decreasing to 3.57% and an average financing cost of 3.47% [4]. - The report forecasts EPS for 2024-2026 to be 0.79 yuan, 0.82 yuan, and 0.86 yuan respectively, with corresponding P/E ratios of 4.4x, 4.3x, and 4.1x [4][5]. Financial Summary - The company reported a revenue of 80.22 billion yuan for 2023, with an expected growth rate of 10.8% for 2024 [5][10]. - The net profit for 2023 was 3.187 billion yuan, with a projected slight increase to 3.197 billion yuan in 2024 [5][10]. - The gross margin is expected to stabilize around 15.0% for 2024, with a net margin of 4.5% [10]. - The company’s total assets are projected to reach 401.18 billion yuan in 2024, with total liabilities of 298.97 billion yuan [8][10].