SHLG(SH:600848) EBSCN·2024-10-13 13:11Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company is actively optimizing its resource layout and continuously enhancing its core competitiveness, which is expected to lead to steady long-term growth in performance [2] - The company plans to acquire a 70% stake in Zhuangqiao Technology Development Co., Ltd. for 630 million yuan and transfer a 94.72% stake in Shanghai Free Trade Zone United Development Co., Ltd. for 1.39 billion yuan, which are seen as fair transactions that will help optimize the company's technological innovation industry layout [2] - The company reported a significant revenue growth of 41.6% year-on-year in the first half of 2024, with total revenue reaching 2.95 billion yuan, driven by strong sales in housing and park operation services [2] Summary by Relevant Sections Financial Performance - In H1 2024, the company achieved a revenue of 2.95 billion yuan, a 41.6% increase year-on-year, with housing sales revenue growing by 132.7% to 1.21 billion yuan [2] - The company’s gross profit margin was 65.2%, down 2.1 percentage points year-on-year, primarily due to a decline in the gross margin of the leasing business [2] - The net profit attributable to shareholders decreased by 43.4% year-on-year to 310 million yuan, mainly due to non-recurring losses [2][3] Earnings Forecast and Valuation - The earnings per share (EPS) forecasts for 2024 and 2025 have been revised down to 0.38 yuan and 0.47 yuan, respectively, with a new forecast for 2026 at 0.48 yuan [2] - The current stock price corresponds to a price-to-earnings (P/E) ratio of 27.8, 22.1, and 21.8 for 2024, 2025, and 2026, respectively [2][3] Market Data - The total market capitalization of the company is approximately 26.385 billion yuan, with a total share capital of 2.522 billion shares [4] - The stock has traded between 8.17 yuan and 12.56 yuan over the past year [4]