Songcheng Performance(300144) Guotai Junan Securities·2024-09-01 01:38Investment Rating - The report maintains a "Buy" rating for the company [6][18]. Core Views - The performance of the Foshan project exceeded expectations, and core projects are showing stable recovery. The forecast for EPS from 2024 to 2026 is set at 0.42, 0.50, and 0.57 CNY respectively, with a target price of 10.53 CNY [4][6]. Financial Summary - For Q2 2024, the company achieved revenue of 618 million CNY, representing a year-on-year increase of 22.08%, and a gross profit of 430 million CNY, with a gross margin of 69.58% [4]. - The net profit attributable to shareholders was 299 million CNY, up 48.35% year-on-year, while the non-recurring net profit was 298 million CNY, an increase of 24.17% [4]. - The company expects significant revenue growth in 2024, with total revenue projected to reach 2.732 billion CNY, a 41.8% increase from 2023 [5][13]. Project Performance - The report highlights that the Hangzhou project generated revenue of 293 million CNY in H1 2024, a 29.42% increase, while the Sanya project saw revenue of 112 million CNY, up 6.45% [4]. - The newly added heavy asset projects, such as the Xi'an project, turned a profit of 27 million CNY compared to a loss of 10 million CNY in the same period last year [4]. Market Data - The current stock price is 7.52 CNY, with a 52-week price range of 7.44 to 13.06 CNY [6][7]. - The total market capitalization is approximately 19.706 billion CNY [7]. Financial Ratios - The report indicates a projected P/E ratio of 17.85 for 2024, decreasing to 13.14 by 2026 [5][13]. - The return on equity (ROE) is expected to improve significantly, reaching 10.0% in 2024 [5][13].