LONGFOR GROUP(00960) 开源证券·2024-09-27 07:04Investment Rating - The report assigns a "Buy" rating for the company for the first time [2]. Core Views - The company has a broad future growth potential due to its three main business segments: development, operation, and service, which work in synergy [4]. - Revenue projections for 2024-2026 are estimated at 158.04 billion, 153.30 billion, and 149.14 billion yuan, with year-on-year growth rates of -12.6%, -3.0%, and -2.7% respectively [4]. - The company is expected to maintain a low price-to-earnings (P/E) ratio of 6.8, 6.1, and 5.6 for the years 2024, 2025, and 2026 [4]. Summary by Sections Company Overview - The company has over 30 years of experience, focusing on residential development, commercial investment, and property management across major cities in China [14]. - The company has a stable shareholding structure, with the Wu family being the largest shareholder [15]. Business Performance - In 2023, the company reported a revenue of 180.74 billion yuan, a decrease of 27.9% year-on-year, primarily due to a decline in property development revenue [21]. - The operating and service segments showed resilience, with a revenue increase of 5.7% year-on-year, contributing to 13.8% of total revenue [21]. Financial Health - The company maintains a strong financial position, with a cash-to-short-term debt ratio of 2.25 and a net debt ratio of 56% as of the end of 2023 [24]. - The company has successfully managed its debt structure, with no foreign bonds maturing before the end of 2026 [26]. Commercial Investment - The company has been actively expanding its commercial investment segment, with a focus on high-energy cities, having entered over 30 cities and opened 88 shopping centers by the end of 2023 [30]. - The company plans to open 14 new shopping centers in 2024, with a total expected area of 951,000 square meters [33].