C&D INC.(600153) GOLDEN SUN SECURITIES·2024-11-06 17:05Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The termination of the share placement plan is expected to alleviate short-term dilution pressure and protect the interests of minority shareholders, which may boost market confidence [1]. - The company's real estate business has shown resilience despite a downturn in the industry, with a focus on high-quality land reserves and a sales ranking improvement [2]. - The supply chain operations have faced challenges due to macroeconomic conditions, but there was a notable recovery in Q3 performance [3]. Summary by Sections Share Placement Plan - On November 3, 2024, the company announced the termination of its share placement plan, which aimed to raise up to RMB 4.98 billion for supply chain operations and debt repayment. The decision was made due to changes in internal and external environments, which is seen as beneficial for maintaining shareholder interests and market confidence [1]. Real Estate Business - From January to October 2024, the company achieved a total sales amount of RMB 104 billion, a decline of 28.6% year-on-year, which is less than the 34.8% decline of the top 100 real estate companies. The company ranked 7th in sales, improving its position from the previous year. In the first half of 2024, the company acquired 17 plots of land with a total investment of RMB 38.76 billion, a year-on-year decrease of 46.3% [2]. Supply Chain Operations - For the first nine months of 2024, the supply chain operations generated revenue of RMB 414.67 billion, a decrease of 22.2% year-on-year, with a net profit of RMB 2.24 billion, down 10.2%. The decline was attributed to macroeconomic conditions and fluctuations in commodity prices. However, Q3 showed a recovery with a net profit of RMB 0.82 billion, a 26.9% increase from Q2 [3]. Financial Projections - The report adjusts the company's revenue forecasts for 2024, 2025, and 2026 to RMB 691 billion, RMB 712.5 billion, and RMB 734 billion, respectively. The projected net profits are RMB 3.18 billion, RMB 3.98 billion, and RMB 4.48 billion, with corresponding EPS of RMB 1.08, RMB 1.35, and RMB 1.52 [4][5].