CHINA RES LAND(01109)2024-08-31 04:18Investment Rating - The investment rating for China Resources Land (01109.HK) is "Buy" (maintained) [3]. Core Views - The company achieved a revenue of 79.13 billion yuan in H1 2024, representing a year-on-year growth of 8.4%. The development sales business contributed 59.13 billion yuan, growing by 8.3%, while recurring income reached 20 billion yuan, up 9.0%, accounting for 25.3% of total revenue [1][2]. - The company is positioned as a leader in domestic commercial operations, with its "Vientiane" shopping centers contributing significantly to performance growth, providing stable cash flow and supporting the main business [1]. - The overall gross profit margin for H1 2024 was 22.3%, with the development business margin under pressure at 12.4%, while the property business margin improved to 71.5% [1]. - The company maintained a strong sales ranking, achieving a contracted sales amount of 124.7 billion yuan, ranking fourth in the industry, with a year-on-year decline of 26.7%, which is less than the average decline of 39.5% among top 100 real estate companies [1][2]. - Financial management remains robust, with a total interest-bearing debt ratio of 38.9% and cash reserves increasing by 3.5% to 118.3 billion yuan, maintaining a net interest-bearing debt ratio of 33.6% [2]. - The establishment of dual REITs for long-term rental apartments and commercial properties supports the company's asset management platform, with an asset management scale of 449.1 billion yuan as of H1 2024 [2]. Summary by Sections Revenue and Growth - H1 2024 revenue reached 79.13 billion yuan, up 8.4% year-on-year, with development sales at 59.13 billion yuan (8.3% growth) and recurring income at 20 billion yuan (9.0% growth) [1]. Profitability - The overall gross profit margin was 22.3%, with the development business margin at 12.4% (down 4.6 basis points) and the property business margin at 71.5% (up 0.2 basis points) [1]. Sales Performance - Contracted sales amounted to 124.7 billion yuan, with a year-on-year decline of 26.7%, maintaining a fourth-place ranking in the industry [1][2]. Financial Health - The company reported a total interest-bearing debt ratio of 38.9% and cash reserves of 118.3 billion yuan, with a net interest-bearing debt ratio of 33.6% [2]. Asset Management - The dual REITs platform has been established, with an asset management scale of 449.1 billion yuan, facilitating the transition to a larger asset management business [2].