Binjiang Group(SZ:002244) KAIYUAN SECURITIES·2024-09-03 01:14Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6]. Core Insights - The company reported a decline in revenue and profit margins, with a significant drop in gross profit margin due to lower turnover rates. However, it has improved its sales ranking and acquired quality land reserves, indicating potential for profit recovery in the future [6][7][8]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 24.2 billion yuan, a year-on-year decrease of 10.5%. The net profit attributable to shareholders was 1.17 billion yuan, down 28.7% year-on-year. The gross margin and net margin were 9.57% and 5.06%, respectively, reflecting declines of 8.68 percentage points and 2.13 percentage points year-on-year [7]. - The decline in profit was primarily due to a drop in the gross profit margin of the real estate segment, which fell by 8.71 percentage points to 9.58%. The negative cash flow was attributed to high land acquisition intensity and a decrease in sales collections [7]. Sales and Land Acquisition - The company reported a sales amount of 58.23 billion yuan in the first half of 2024, a decrease of 37.1% year-on-year. However, its sales ranking improved to 8th in the industry. The company acquired 10 plots of land in Hangzhou with a total investment of 22.3 billion yuan, adding over 35 billion yuan in new value [8]. - As of the end of the first half, the total land reserves were 12.9 million square meters, with 66% located in Hangzhou, indicating a strong focus on high-quality land reserves [8]. Financial Structure and Cost Management - The company optimized its debt structure, with a total interest-bearing debt of 39.868 billion yuan, down by 1.65 billion yuan from the beginning of the year. The cash-to-short-term debt ratio was 2.46 times, maintaining a healthy financial position [9]. - The comprehensive financing cost decreased to 3.7%, a reduction of 50 basis points compared to the end of 2023 [9]. Profit Forecast - The profit forecast for the company remains unchanged, with expected net profits attributable to shareholders of 3.08 billion yuan, 3.83 billion yuan, and 4.41 billion yuan for 2024, 2025, and 2026, respectively. The corresponding EPS is projected to be 0.99 yuan, 1.23 yuan, and 1.42 yuan, with current stock prices reflecting P/E ratios of 8.5, 6.8, and 5.9 times [6][10].