Huafa Properties(600325) 光大证券·2024-11-11 01:37Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company experienced a significant decline in revenue and profit in the first three quarters of 2024, but sales showed a rapid recovery in October, indicating potential for future growth [1][2]. - A stock buyback plan of up to 600 million yuan is proposed, aimed at enhancing management incentives and stabilizing the core team for future development [3]. - The company's financial health remains robust, with a strong land reserve and credit advantages, despite the challenges faced in the current market [4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 31.56 billion yuan, a year-on-year decrease of 33.2%, with Q3 revenue at 6.72 billion yuan, down 57.4% year-on-year [1]. - The gross profit margin for the company was 15.8%, down 1.9 percentage points year-on-year, with net profit attributable to shareholders at 1.33 billion yuan, a decline of 39.6% [1]. Sales and Market Position - The company achieved sales of 65.12 billion yuan in the first three quarters of 2024, down 37% year-on-year, but saw a significant recovery in October with sales of 11.03 billion yuan, a 99% month-on-month increase and 30% year-on-year growth [2]. - The company ranked 11th in sales among real estate companies according to CRIC data, maintaining a leading position in the industry [2]. Stock Buyback and Incentives - The company announced a stock buyback plan of 300 to 600 million yuan, with a maximum buyback price of 9.83 yuan per share, representing 1.11% to 2.22% of the total share capital [3]. - The buyback shares will be used for employee stock ownership plans or equity incentives, aimed at enhancing management vitality and stability [3]. Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2024-2026 has been adjusted to 0.55, 0.66, and 0.83 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 12.9, 10.7, and 8.5 times [4]. - The company is expected to improve its performance in the future due to its solid operational foundation and ample land reserves [4].