Binjiang Group(002244)2024-09-02 05:49Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4]. Core Views - The company has experienced a decline in revenue and net profit in the first half of 2024, with revenue at 24.2 billion RMB, down 10.5% year-on-year, and net profit at 1.17 billion RMB, down 28.7% year-on-year [3][4]. - Despite short-term profit pressures, the company has a strong pipeline of pre-sold projects and a solid land reserve, particularly in Hangzhou and Zhejiang province, which supports future growth [4][3]. - The company is focusing on cost control and maintaining a healthy financial position, with a debt-to-asset ratio of 59.0% and a net debt ratio of 22.9% as of June 2024 [3][15]. Summary by Sections Financial Performance - In H1 2024, the company reported a gross margin of 9.6%, a decrease of 8.7 percentage points year-on-year, primarily due to lower margins from projects delivered in 2020 and 2021 [3][10]. - The annualized ROE for H1 2024 was 8.8%, down 4.2 percentage points year-on-year, reflecting the impact of declining profit margins [3][12]. Sales and Market Position - The company achieved sales of 58.2 billion RMB in H1 2024, a decrease of 37.1% year-on-year, ranking 8th in the industry, an improvement of 3 places from 2023 [3][17]. - The sales target for 2024 is set at over 100 billion RMB, aiming for a market share of 1% and a national ranking within the top 15 [3][4]. Land Acquisition and Development - The company maintained a high land acquisition intensity, with 10 new projects added in H1 2024, all located in Hangzhou, totaling 875,000 square meters, with an acquisition cost of 22.27 billion RMB [3][19]. - As of June 2024, the total land reserve stood at 12.9 million square meters, with 76% located in Hangzhou, ensuring a robust foundation for future development [3][21]. Other Business Initiatives - The company is expanding its leasing and construction management businesses, with plans to add 5-10 new construction management projects in 2024 [3][4]. - The rental income from investment properties reached 198 million RMB in H1 2024, a year-on-year increase of 21.5% [3][4].