CHINA RES LAND(01109) 海通证券·2024-09-06 00:11Stock Data and Market Performance - The closing price of the stock on September 4th was HKD 20.65, with a 52-week price range of HKD 19.39-35.50 [1] - The total market capitalization is HKD 147.3 billion, with 7,131 million shares outstanding [1] - In H1 2024, the company reported revenue of RMB 79.13 billion, a YoY increase of 8.4%, but net profit attributable to shareholders decreased by 25.4% YoY to RMB 10.25 billion [1][7] - The gross profit margin was 22.3%, down 3.4 percentage points YoY, primarily due to lower margins in development and sales business [1][7] - As of June 2024, the company had cash and bank balances of RMB 118.33 billion, a 3.5% increase from the end of 2023 [1][7] Business Segments Performance Development and Sales Business - The company achieved contracted sales of RMB 124.7 billion in H1 2024, ranking fourth in the industry, with top-five market share in 20 cities [5][9] - The company focused on strategic investments in core cities and prime locations, acquiring multiple strategic projects [9] Commercial Property Business - Shopping center rental income reached RMB 9.48 billion in H1 2024, a 9.7% YoY increase [5][10] - Retail sales in 82 operating shopping centers totaled RMB 91.62 billion, up 21.9% YoY, with 69 centers ranking in the top three locally [5][10] - Six new shopping centers opened with a leasing rate of 97.8%, and two new shopping center sites were acquired in Beijing and Dalian [5][10] Light Asset Management Business - CR Mixc Lifestyle achieved revenue of RMB 7.96 billion in H1 2024, a 17.1% YoY increase, with core net profit of RMB 1.77 billion, up 24.2% YoY [3][10] - The company managed 108 shopping centers, including 13 luxury malls, and had a total managed area of 398 million square meters [3][10] - The Mixc Star membership program reached 52.2 million members, a 13% increase from the end of 2023 [3][10] Ecosystem Business - Urban construction business generated revenue of RMB 390 million, with 358 projects under management, ranking second in new government construction contracts [5][10] - Rental housing business achieved revenue of RMB 380 million, with 62 projects under management, ranking eighth in the industry [5][10] - CR Youchao REIT reported revenue of RMB 39.31 million, a 1.5% YoY increase, and EBITDA of RMB 24.6 million, up 4.3% YoY [5][10] Financial Forecasts and Valuation - The company is expected to achieve revenue of RMB 268.77 billion in 2024, with a net profit of RMB 26.54 billion [6][12] - The 2024 EPS is forecasted at RMB 3.72, with a PE valuation of 10-11x, implying a market cap range of HKD 289.9-318.9 billion and a fair value range of HKD 40.65-44.71 per share [5][12] - The gross profit margin is expected to be 22.15% in 2024, with a net profit margin of 9.87% [6][14] - ROE is projected to be 9.44% in 2024, with a net debt ratio of 25.25% [14]