Binjiang Group(002244) 国盛证券·2024-11-03 06:23Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Views - The company has shown active land acquisition focused on Hangzhou, maintaining healthy financial indicators despite a decline in revenue and net profit [1][4]. - The decrease in performance is attributed to reduced delivery volume and declining gross margins, with expectations for improvement in the fourth quarter [2][3]. - The company has successfully reduced its interest-bearing debt, indicating a healthy balance sheet and strong short-term repayment capability [3][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 40.78 billion yuan, a year-on-year decrease of 12.1%, and a net profit attributable to shareholders of 1.63 billion yuan, down 33.9% [1][2]. - The gross margin for the first three quarters was 10.4%, a decline of 4.6 percentage points year-on-year, while the third quarter saw a slight improvement in gross margin to 11.7% [2][3]. - The company’s sales for the first three quarters amounted to 80.13 billion yuan, a decrease of 34.4% year-on-year, but the decline was less than that of the top 100 real estate companies [3][4]. Land Acquisition and Debt Management - The company acquired 11 plots of land in Hangzhou during the first three quarters, with a total investment of 25.1 billion yuan, representing a 54% decrease year-on-year [3][4]. - As of the end of the third quarter of 2024, total assets were 277.91 billion yuan, with total liabilities of 219.49 billion yuan, reflecting a 5.2% decrease from the previous year [3][4]. Future Projections - The company is projected to achieve revenues of 74 billion yuan in 2024, with net profits expected to reach 2.8 billion yuan [4][8]. - Earnings per share (EPS) are forecasted to be 0.90 yuan for 2024, with a price-to-earnings (P/E) ratio of 11.5 times based on the current stock price [4][8].