SINOLINK SECURITIES·2024-08-29 01:40Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% within the next 6-12 months [8]. Core Insights - The company reported a revenue of 869.4 billion yuan for 1H24, a year-on-year decrease of 2.5%, and a net profit attributable to shareholders of 103.1 billion yuan, down 23.5% year-on-year [2]. - The decline in profit is attributed to industry downturns, with a gross margin of 22.06%, a decrease of 0.55 percentage points year-on-year [2]. - The company achieved a contract sales amount of 1484 billion yuan in 1H24, a decrease of 17% year-on-year, but maintained the highest market share in equity sales [2]. - The company focused on core cities, with 62.7% of total sales coming from four first-tier cities, and set a record for single-day sales in Shanghai [2]. - The financial structure remains robust, with a net debt ratio of 38.7% and a cash-to-short-term debt ratio of 1.9, while the average financing cost decreased to 3.5% [2]. Financial Performance Summary - Revenue for 2024 is projected at 209.5 billion yuan, with a growth rate of 3.45%, and net profit is expected to be 26.7 billion yuan, reflecting a growth rate of 4.32% [6]. - The company’s P/E ratios are projected to be 4.4, 4.0, and 3.7 for 2024, 2025, and 2026 respectively, indicating a favorable valuation [2][6]. - The report anticipates continued growth in performance due to increased market share and a focus on major urban areas [2].