BUCID(600266) Haitong Securities·2024-11-11 00:41Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights that the company's financial investments have shown significant improvement, leading to a turnaround in profitability. For the first nine months of 2024, the company achieved a net profit attributable to shareholders of 5.45 billion yuan, primarily due to a substantial increase in the stock prices of its financial assets [5][9] - The company has made efforts to increase its land reserves, with a total building area of 352,900 square meters added in the first nine months of 2024, although this represents a decline of 44.92% year-on-year. The report anticipates a recovery in sales as real estate policies become more favorable, particularly in first-tier cities [6][7] - The company completed its second share repurchase and cancellation, reducing the total number of shares to 2.075 billion, which is expected to enhance shareholder value [6][7] Summary by Sections Financial Performance - For the first nine months of 2024, the company reported operating revenue of 11.76 billion yuan, a decrease of 26.72% year-on-year. The net profit attributable to shareholders was 5.45 billion yuan, marking a significant recovery from previous losses [5][9] - The company's investment income and fair value changes for the first nine months were -198 million yuan and 859 million yuan, respectively, with a notable recovery in the third quarter [5][9] Sales and Land Acquisition - The company experienced a decline in sales area, with 230,200 square meters sold in the first nine months of 2024, down 66.03% year-on-year. The sales revenue was 15.398 billion yuan, a decrease of 51.32% [6][7] - New land reserves added in the first nine months were 352,900 square meters, with a significant drop in both total and equity areas compared to the previous year [6][7] Valuation and Future Projections - The report projects the company's earnings per share (EPS) to be 0.29 yuan in 2024 and 0.35 yuan in 2025, with a price-to-book (PB) ratio of 0.6-0.7, suggesting a reasonable value range of 6.92-8.08 yuan per share [7][12] - The company is expected to see a gradual recovery in revenue, with projected operating revenues of 20.874 billion yuan in 2024 and 22.971 billion yuan in 2025, reflecting a year-on-year growth of 2.5% and 10.1%, respectively [8][12]