FINANCIAL STREET(000402) 华创证券·2024-09-04 12:40Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 2.8 RMB, compared to the current price of 2.11 RMB [1] Core Views - The company's revenue for the first half of 2024 reached 9.654 billion RMB, a year-on-year increase of 71.94%, while net profit attributable to the parent company was -1.984 billion RMB, a year-on-year decrease of 172.34% [1] - The gross profit margin for real estate development business was -2.5%, with an asset impairment provision of 1.13 billion RMB [1] - The company's sales contracted amount in the first half of 2024 was 9.09 billion RMB, a year-on-year decrease of 42%, with a total land reserve of 12.96 million square meters [1] - The property leasing and operation business remained relatively stable, with a combined revenue of 1.06 billion RMB, accounting for 11% of total revenue [2] Financial Performance - The company's total operating income is expected to be 13.592 billion RMB in 2024, with a year-on-year growth rate of 8.1% [3] - Net profit attributable to the parent company is expected to be -1.523 billion RMB in 2024, with a year-on-year growth rate of 21.7% [3] - The company's EPS is expected to be -0.51 RMB in 2024, -0.19 RMB in 2025, and 0.11 RMB in 2026 [3] Land Reserve and Development - The company has been cautious in land acquisition, acquiring only one residential plot in Tianjin and Suzhou in 2022 and 2023, with land prices of 3.5 billion RMB and 1.2 billion RMB respectively [1] - In the first half of 2024, the company acquired two residential plots in Tianjin through equity acquisition, with a total acquisition price of 1.3 billion RMB and a planned construction area of 160,000 square meters [1] - The company's total land reserve is 12.96 million square meters, with 23% in first-tier cities, 36% in second-tier cities, and 42% in third- and fourth-tier cities [1] Property Leasing and Operation - The property leasing business generated revenue of 860 million RMB in the first half of 2024, a year-on-year decrease of 3.21%, with a gross profit margin of 88% [2] - The property operation business generated revenue of 200 million RMB, a year-on-year increase of 10.57%, with a gross profit margin of 23% [2] - The company's leasable property area is 1.23 million square meters, with 69% located in Beijing and Shanghai [2] Future Outlook - The company's high-tier city land reserves are expected to support future sales, but the slowdown in land acquisition since 2022 has put pressure on the revenue and gross profit of the development business in the medium to long term [2] - The company holds high-quality assets in core cities, with stable rental performance providing risk resistance [2]