CMSK(SZ:001979) SINOLINK SECURITIES·2024-09-01 07:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [3][12]. Core Insights - The company's revenue and profit have declined, with 1H24 revenue at 51.27 billion RMB, down 0.3% year-on-year, and net profit attributable to shareholders at 1.42 billion RMB, down 34.2% year-on-year [2]. - The decline in revenue and profit is primarily due to a decrease in gross margin, with the average turnover price of real estate projects falling and a reduction in revenue from development activities [2]. - The company has optimized its sales structure, maintaining a strong position in core cities, with sales amounting to 101 billion RMB in 1H24, a decrease of 39% year-on-year, but outperforming the industry average decline of 42% [2]. - The company has focused on investment management, acquiring 7 land parcels with a total construction area of 800,000 square meters and a total land price of 14.6 billion RMB [2]. - The financial structure remains robust, with a debt-to-asset ratio of 62.42% and a net debt ratio of 59.17% as of 1H24, indicating a healthy financial position [2]. Summary by Sections Revenue and Profit - 1H24 revenue was 51.27 billion RMB, down 0.3% year-on-year; net profit was 1.42 billion RMB, down 34.2% year-on-year [2]. - 2Q24 revenue was 27.53 billion RMB, down 24.5% year-on-year; net profit was 1.08 billion RMB, down 42.3% year-on-year [2]. Sales Performance - Sales amount in 1H24 was 101 billion RMB, down 39% year-on-year, with a sales ranking in the top five of the industry [2]. - The sales equity ratio increased to 65%, up 9 percentage points year-on-year, with significant contributions from core cities [2]. Investment Strategy - The company acquired 7 land parcels in 1H24, focusing 86% of its investment in core cities [2]. - A total of 26 new management projects were added, increasing managed area by 1.78 million square meters [2]. Financial Health - The company reported a debt-to-asset ratio of 62.42% and a net debt ratio of 59.17% in 1H24, with a cash-to-short-term debt ratio of 1.63 [2]. - The average financing cost was 3.25%, down 22 basis points from the end of 2023 [2].