Investment Rating - The report maintains a "Recommend" rating for Greentown China (03900 HK) with a target price of HKD 9 [1] Core Views - Greentown China's revenue grew by 22 1% YoY in H1 2024, while net profit attributable to shareholders decreased by 19 7% YoY [1] - The company's gross margin faced temporary pressure, dropping to 13 1% in H1 2024, down 4 3 percentage points YoY [1] - Greentown China adopted a cautious investment strategy, with land acquisition rights ratio increasing to 84% in H1 2024 [1] - The company improved its dividend payout ratio to 20%-50% and optimized its financing structure, reducing average financing costs to 3 9% in H1 2024 [1] Financial Performance - Greentown China achieved operating income of RMB 69 56 billion in H1 2024, with core net profit attributable to shareholders increasing by 27 5% YoY to RMB 4 95 billion [1] - The company's total land reserve value reached RMB 534 8 billion, with an average floor price of RMB 7,999 per square meter [1] - Self-invested project sales amounted to RMB 85 4 billion in H1 2024, with a sales rights ratio of 71% [1] Strategic Focus - Greentown China focused on high-tier cities, with core second-tier cities accounting for 94% of new land acquisition value [1] - The company's land acquisition strategy emphasized quality projects, with 79% of total land reserves located in first and second-tier cities [1] - Greentown China's product quality and reputation remain industry-leading, supporting its strategy of deepening core city operations [1] Future Outlook - The report forecasts Greentown China's EPS for 2024-2026 at RMB 1 31, 1 46, and 1 46 respectively [1] - The company's sales stability and operational efficiency are expected to improve, helping it navigate the industry downturn [1] - Greentown China's gross margin is projected to recover as projects acquired in 2022-2023 are delivered [1]
绿城中国：2024年中报点评：利润阶段性承压，投资权益比持续提升