Huafa Properties(SH:600325) Changjiang Securities·2024-11-01 02:11Investment Rating - The report maintains a "Buy" rating for Huafa Group [7]. Core Views - The company reported a significant decline in performance, with a 33.2% decrease in revenue to CNY 31.56 billion and a 39.6% drop in net profit to CNY 1.33 billion for the first three quarters of 2024 [2][3]. - The comprehensive gross margin decreased by 1.9 percentage points to 15.8%, contributing to the decline in profitability [3]. - The company has a robust cash position with CNY 91.32 billion in advance receipts, indicating a stable outlook for future revenue recognition [3]. - Despite the challenging market conditions, the company remains in the top tier of sales, ranking 11th in the industry with a sales volume of CNY 65.12 billion [4]. - The company plans to repurchase shares worth CNY 300-600 million to boost investor confidence, with a target price not exceeding CNY 9.83 per share [5]. Summary by Sections Financial Performance - For the first three quarters of 2024, Huafa Group achieved a revenue of CNY 31.56 billion, down 33.2%, and a net profit of CNY 1.33 billion, down 39.6% [2][3]. - The gross margin fell to 15.8%, and the tax rate increased to 32.4%, further impacting net profit [3]. Sales and Market Position - The company recorded a sales volume of CNY 65.12 billion, a decrease of 37.1%, with a sales area of 2.276 million square meters, down 30.2% [4]. - The average selling price per square meter decreased by 10.0% to CNY 28,600 [4]. Land Acquisition and Development - In the first three quarters of 2024, the company acquired two new projects in Shanghai and Guangzhou, with a total land acquisition cost of CNY 5.74 billion, down 89.1% [4]. - The company has a substantial land reserve of 13.72 million square meters, providing a buffer for future sales [4]. Share Repurchase and Investor Confidence - The company plans to repurchase shares to enhance investor confidence, with an estimated repurchase of 43.48 to 86.96 million shares, representing 1.58% to 3.16% of total shares [5]. - The repurchase plan is aimed at aligning the interests of the company and its shareholders [5]. Long-term Outlook - The report suggests that while the company is currently facing challenges due to market conditions, its strategic positioning in core cities and substantial land reserves provide a foundation for future growth [5]. - The forecast for net profit from 2024 to 2026 is CNY 1.57 billion, CNY 1.62 billion, and CNY 1.66 billion, respectively, indicating a gradual recovery [5].