Huafa Properties(SH:600325) Haitong Securities·2024-11-02 04:09Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The company reported a significant decline in revenue and net profit for the first three quarters of 2024, with revenue at 31.559 billion yuan, down 33.21% year-on-year, and net profit attributable to shareholders at 1.331 billion yuan, down 39.56% year-on-year [6][7]. - The decline in performance is primarily attributed to a decrease in the scale of real estate project deliveries compared to the same period last year [7]. - The company achieved a sales amount of 65.12 billion yuan, a decrease of 37% year-on-year, and a sales area of 2.276 million square meters, down 30% year-on-year [7]. - The company has a reasonable value range estimated between 6.84 yuan and 8.55 yuan, with an expected EPS of 0.71 yuan for 2024 [8]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported total revenue of 31.559 billion yuan, a 33.21% decrease year-on-year, and a net profit of 1.331 billion yuan, a 39.56% decrease year-on-year [6]. - The diluted earnings per share (EPS) for the first three quarters was 0.48 yuan, with a return on equity (ROE) of 5.93%, down 6.29 percentage points year-on-year [6]. Sales and Project Development - The company reported a sales amount of 65.12 billion yuan and a sales area of 2.276 million square meters for the first three quarters of 2024, reflecting a 37% and 30% decline year-on-year, respectively [7]. - New land projects added in 2024 include residential land in Shanghai and Guangzhou, with the company holding a 26.01% stake in these projects [7]. Future Projections - The company is projected to achieve a revenue of 79.990 billion yuan in 2024, with a net profit of 1.952 billion yuan, indicating a recovery in performance with a projected net profit growth of 6.2% in 2025 [9][11]. - The expected dynamic price-to-earnings (P/E) ratio for 2024 is between 9.63 and 12.04 times, while the dynamic price-to-book (P/B) ratio is estimated at 0.8 to 1.0 times [8].