Seazen(SH:601155) HTSC·2024-09-01 06:03Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 11.05 [2][3]. Core Insights - The company reported a revenue of RMB 33.9 billion for H1 2024, a year-over-year decrease of 18.8%, and a net profit attributable to shareholders of RMB 1.32 billion, down 42.2% year-over-year [3]. - The company is expected to achieve an EPS of RMB 0.33, RMB 0.34, and RMB 0.36 for the years 2024, 2025, and 2026 respectively, with a projected BVPS of RMB 26.96 for 2024 [3]. - The report highlights a significant decline in real estate sales, with a sales area of 3.262 million square meters and sales revenue of RMB 23.55 billion, representing year-over-year decreases of 36.9% and 44.5% respectively [4][5]. Financial Performance - The company's financial performance was impacted by a decrease in settlement income and an increase in financial expenses, leading to a net profit decline [4]. - The commercial operations segment showed positive performance, with revenue and gross margin increasing by 19.3% and 2.7 percentage points year-over-year, respectively [5]. - The company successfully issued medium-term notes of RMB 1.36 billion at an interest rate of 3.2%-3.4%, contributing to improved cash flow and reduced debt pressure [6]. Operational Highlights - The company opened six new shopping centers in H1 2024, with an average occupancy rate of 97.24%, contributing to a total commercial revenue of RMB 6.195 billion, up 19.6% year-over-year [5]. - The company has maintained a stable delivery pace, with a completion rate of 51% for the planned construction area [4]. Valuation Metrics - The report provides a comparison of the company's valuation metrics, with a projected PB of 0.41 for 2024, aligning with the industry average [3][7]. - The company's market capitalization is approximately RMB 23.143 billion, with a closing price of RMB 10.26 as of August 30 [9].