CMSK(001979) SINOLINK SECURITIES·2024-10-31 07:45Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Views - The company reported a slight revenue increase of 2.88% year-on-year for the first nine months of 2024, with total revenue reaching 78.01 billion yuan. However, the net profit attributable to shareholders decreased by 31.00% to 2.60 billion yuan, primarily due to a decline in gross margin [2]. - The company remains in the top five of the industry despite a 35.9% year-on-year drop in sales amounting to 145.17 billion yuan for the same period [2]. - The company has focused its investments on core first- and second-tier cities, acquiring 14 residential land parcels with a total equity land acquisition amount of 20.9 billion yuan, of which 71.8% is located in first-tier cities [2]. - The company has actively engaged in stock repurchase programs, demonstrating confidence in its development, with plans to repurchase approximately 22.39 to 44.77 million shares [2]. - The establishment of a third public REIT platform aims to further activate assets and optimize operations, enhancing financing channels [2]. Summary by Sections Financial Performance - For the first nine months of 2024, the company achieved revenue of 78.01 billion yuan, a year-on-year increase of 2.88%, while the net profit attributable to shareholders was 2.60 billion yuan, down 31.00%. The gross margin for this period was 9.95%, a significant decline of 8.3 percentage points from the previous year [2][3]. - The company’s revenue for Q3 2024 was 26.74 billion yuan, reflecting a year-on-year increase of 9.64%, while net profit for the same quarter was 1.18 billion yuan, down 26.78% [2]. Sales and Market Position - The company maintained its position as the fifth largest in the industry, with total sales of 145.17 billion yuan for the first nine months of 2024, despite a 35.9% decline year-on-year [2]. - The focus on core cities is evident, with 14 land parcels acquired, 6 of which are in first-tier cities, representing a significant portion of the total land acquisition [2]. Investment and Future Outlook - The company is expected to see a recovery in performance as quality projects are gradually recognized in the financial statements, with projected net profits for 2024-2026 of 6.34 billion yuan, 7.69 billion yuan, and 9.25 billion yuan, respectively [3]. - The current stock price corresponds to a PE ratio of 15.7x for 2024, 12.9x for 2025, and 10.8x for 2026, supporting the "Buy" rating [3].