Huafa Properties(SH:600325) Ping An Securities·2024-09-01 10:07Investment Rating - The report maintains a "Recommended" rating for the company [2][6] Core Views - The company experienced a decline in revenue and profit in the first half of 2024, with revenue at 24.84 billion yuan, down 21.1% year-on-year, and net profit at 1.26 billion yuan, down 34.4% year-on-year [4] - Despite the decline, the company has a relatively sufficient backlog of resources, with contract liabilities amounting to 89.04 billion yuan, which is 1.4 times its revenue over the past year [4] - The company has improved its sales ranking, moving up three places to 11th in the sales rankings, with total sales of 45.2 billion yuan, down 41.2% year-on-year [4] - The company has implemented various strategies to enhance sales, including a "trade-in" program and increased digital marketing efforts [4] - The company has strengthened cash flow management, maintaining a stable financial structure with a debt ratio of 61.3% excluding advance payments [4] Financial Summary - For the first half of 2024, the company reported a revenue of 24.84 billion yuan and a net profit of 1.26 billion yuan, with a gross margin of 16.8%, down 2.1 percentage points year-on-year [4] - The company’s projected EPS for 2024-2026 is 0.70 yuan, 0.75 yuan, and 0.79 yuan, with corresponding P/E ratios of 7.8, 7.4, and 7.0 [6] - The company’s total assets are projected to decrease from 451.7 billion yuan in 2023 to 413.8 billion yuan in 2026 [7] - The company’s operating cash flow for 2024 is estimated at 24.11 billion yuan, significantly lower than the previous year [8] - The company’s debt ratio is expected to decrease from 70.8% in 2023 to 66.2% in 2026, indicating improved financial stability [9]