CMSK(SZ:001979)2024-09-02 08:10Investment Rating - The report maintains a "Buy" rating for the company [5][6]. Core Views - The company's revenue for the first half of 2024 decreased by 0.3% year-on-year, while net profit dropped by 34.2%, aligning with market expectations. This decline is attributed to lower profit margins from project settlements and reduced investment income [5]. - The company achieved a sales amount of 1,009.5 billion yuan in the first half of 2024, a 39% year-on-year decrease, ranking fifth in the industry. The land acquisition to sales ratio stands at 14%, focusing on core cities [5][6]. - The company maintains a strong financing advantage with a low financing cost of 3.25% and remains in the green zone for the "three red lines" financial metrics [6]. Summary by Sections Financial Performance - For the first half of 2024, the company reported total revenue of 512.7 billion yuan, with a gross profit margin of 12.0% and a net profit margin of 2.8% [5]. - The company's total liabilities to assets ratio is 68.16%, with a net asset value per share of 10.68 yuan [3][5]. Sales and Market Position - The company’s sales area decreased by 36% year-on-year, with a significant focus on ten core cities, which accounted for 66% of total sales [5]. - The company has a substantial land reserve, with a total unfinished construction area of 33.64 million square meters, covering 2.8 times the sales of 2023 [5]. Investment Outlook - The report anticipates that the company will benefit from its financing advantages and focus on core cities, despite the current industry downturn. The profit forecasts for 2024-2026 have been adjusted to 6.6 billion, 7.3 billion, and 8.1 billion yuan respectively [5][6][7].