CHINA RES LAND(01109) 国泰君安·2024-09-02 06:17Investment Rating - The report maintains an "Accumulate" rating for China Resources Land (1109) [2][5]. Core Views - In the first half of 2024, the company experienced revenue growth without profit increase, with a gross margin still in a downward trend. The development and sales business faced temporary pressure, while the recurring income business showed steady improvement, contributing over 50% to core net profit [4][5]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 79.13 billion RMB, a year-on-year increase of 8.4%, while net profit attributable to shareholders was 10.25 billion RMB, down 25.4% year-on-year. The gross margin decreased by 3.4 percentage points to 22.3% [5]. - The development and sales business generated revenue of 59.13 billion RMB, up 8.3% year-on-year, accounting for 74.7% of total revenue. The company expects to settle 166.12 billion RMB in the second half of the year, aiming for a total settlement revenue of 225.25 billion RMB for the year, a 6.2% increase year-on-year [5]. - The recurring income business saw revenue rise by 9% to 20 billion RMB, contributing 5.52 billion RMB to core net profit, a 14.4% increase year-on-year [5]. Business Segments - The gross margin for the development and sales business fell by 4.6 percentage points to 12.4%, while the operating real estate business's gross margin increased by 0.2 percentage points to 71.5% [5]. - The company maintained a strong market position, ranking fourth in sales amount with a 26.7% year-on-year decline to 124.7 billion RMB, while maintaining a top-five market share in 20 cities [5]. Future Outlook - The company has accumulated land reserves of 4.7712 million square meters, with a corresponding value of 1,141.71 billion RMB based on the average selling price of 24,000 RMB per square meter in the first half of the year, indicating ample future performance release potential [5]. - The financial health remains robust, with a comprehensive financing cost of 3.24% in H1 2024, down 32 basis points from the beginning of the year [5].