CMSK(SZ:001979) Minsheng Securities·2024-09-02 07:30Investment Rating - The report maintains a "Recommended" rating for the company [3][4]. Core Insights - In the first half of 2024, the company achieved operating revenue of 51.273 billion yuan, a slight decrease of 0.33% year-on-year, and a net profit attributable to shareholders of 1.417 billion yuan, down 34.17% year-on-year. However, the non-recurring net profit increased by 0.45% year-on-year to 1.399 billion yuan [2][3]. - The company's gross profit margin and net profit margin were 11.98% and 3.60%, respectively, with the development business gross profit margin at 12.24%. The comprehensive funding cost decreased by 22 basis points to 3.25% compared to the same period in 2023 [2][3]. - The total profit for the first half of 2024 was 2.959 billion yuan, a decrease of 40.51% year-on-year, primarily due to the decline in gross profit margin from development business and reduced investment income from the transfer of subsidiary equity [3]. Summary by Sections Revenue and Profitability - The company reported a total operating revenue of 51.273 billion yuan in the first half of 2024, with a year-on-year decline of 0.33%. The net profit attributable to shareholders was 1.417 billion yuan, down 34.17% year-on-year, while the non-recurring net profit slightly increased by 0.45% to 1.399 billion yuan [2][3]. - The gross profit margin for the development business was 12.24%, reflecting a decrease of 5.58 percentage points year-on-year, attributed to a decline in average transfer prices of real estate projects [3]. Sales Performance - The company signed sales of 4.3871 million square meters with a total sales amount of 100.952 billion yuan in the first half of 2024. The sales rights ratio increased by 9 percentage points, with the total signed amount ranking fifth in the industry [3]. - The sales performance in core cities remained strong, with the "Strong 30 Cities" contributing 91% to the sales amount, and the "Core 10 Cities" contributing 66%, an increase of 2 percentage points compared to the first half of 2023 [3]. Land Acquisition and Financial Health - In the first half of 2024, the company acquired 7 land parcels with a total construction area of approximately 800,000 square meters and a total land price of about 14.614 billion yuan, with 86% of the investment in "Core 10 Cities" [3]. - As of June 30, 2024, the company's asset-liability ratio, excluding advance receipts, was 62.42%, and the net debt ratio was 59.17%, indicating a healthy financial position with all three red line indicators in the green zone [3]. Future Outlook - The company is expected to achieve operating revenues of 191.697 billion yuan, 192.504 billion yuan, and 194.799 billion yuan for 2024, 2025, and 2026, respectively, with a price-to-book ratio of 0.7 for the years 2024-2026 [3][4]. - The report suggests that with the easing of financing policies, optimized land reserve structure, and anticipated stabilization in sales, the company's advantages in development capability, land reserve quality, and operational capacity will become more pronounced [3].