OCT(SZ:000069) Haitong Securities·2024-11-11 10:48Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Insights - The company's main business experienced a loss but reduced the loss year-on-year. For the first nine months of 2024, the company achieved operating revenue of 29.33 billion yuan, a decrease of 7.7% year-on-year, and a net profit attributable to shareholders of -2.35 billion yuan, down 29.8% year-on-year [5][6] - The gross profit margin was 12.88%, a decline of 8.58 percentage points compared to the same period in 2023. As of the end of Q3 2024, total assets were 345.68 billion yuan, down 6.83% from the end of 2023, and net assets attributable to shareholders were 59.73 billion yuan, down 3.58% [5][8] - The company reported a significant decline in contract sales, with a total sales area of 1.101 million square meters, down 29% year-on-year, and a contract sales amount of 16.93 billion yuan, down 47% year-on-year. However, there is an expectation for policy support to improve sales in the future [5][6] Financial Performance Summary - For Q3 2024, total operating revenue was 29.33 billion yuan, down 7.7% from Q3 2023. Total operating costs were 31.72 billion yuan, a decrease of 7.2% [8] - The net profit for Q3 2024 was -3.04 billion yuan, a decrease of 25.2% year-on-year. The diluted earnings per share (EPS) for the same period was -0.31 yuan, down 26.3% [9][11] - The company is projected to have an EPS of -0.12 yuan for 2024, with a net asset value per share of 7.49 yuan. The estimated reasonable value range is between 3.00 and 3.74 yuan per share based on a price-to-book (PB) ratio of 0.4-0.5 [6][11] Market Comparison - The company’s total market value is 256 billion yuan, with a projected EPS of -0.12 yuan for 2024. Comparatively, other companies in the sector have varying P/E and P/B ratios, indicating a challenging market environment [10][11]