CMSK(SZ:001979) Tianfeng Securities·2024-09-02 11:00Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative return of over 20% within the next six months [3]. Core Views - The company's revenue for the first half of 2024 was 51.273 billion yuan, a slight decrease of 0.33% year-on-year, while the net profit attributable to shareholders was 1.417 billion yuan, down 34.17% year-on-year [1]. - The decline in profit is attributed to a decrease in the gross profit margin from development projects and reduced investment income from subsidiary equity transfers [1]. - The company is focusing on core cities for sales and strengthening investment management, with a total of 7 land parcels acquired in the first half of 2024, totaling 1.4614 billion yuan [1]. - The company has successfully reduced the proportion of short-term debt and financing costs, with a cash-to-short-term debt ratio of 1.63 and a comprehensive financing cost of 3.25% as of the end of the first half of 2024 [1]. - The asset operation remains stable, with a total operating income of 3.6 billion yuan from various segments, including commercial and apartment businesses, showing positive growth [1]. Financial Performance Summary - For the first half of 2024, the company reported a gross margin of 11.98%, down 4.28 percentage points from the same period in 2023 [1]. - The company’s total sales area signed in the first half of 2024 was 4.3871 million square meters, a decrease of 35.86% year-on-year, with a sales amount of 100.952 billion yuan, down 39.34% year-on-year [1]. - The projected net profit for 2024-2026 has been adjusted to 6.825 billion yuan, 7.690 billion yuan, and 8.818 billion yuan respectively [1]. Valuation Metrics - The company’s earnings per share (EPS) for 2024 is projected to be 0.75 yuan, with a price-to-earnings (P/E) ratio of 11.72 [2]. - The price-to-book (P/B) ratio is expected to be 0.65 in 2024, indicating a potential undervaluation [2]. - The enterprise value to EBITDA (EV/EBITDA) ratio is projected to be 8.91 for 2024, suggesting a reasonable valuation compared to industry peers [2].