CWTC Co., Ltd.(600007) 海通证券·2024-11-13 02:37Investment Rating - The report maintains an "Outperform" rating for China World Trade Center (600007) [2] Core Views - Revenue remains flat while profits grow steadily: In the first 9 months of 2024, the company achieved revenue of 2.95 billion yuan, a slight increase of 0.02% YoY, and net profit attributable to the parent company of 1.019 billion yuan, up 1.63% YoY [6] - Office rental rates increased while occupancy rates were affected by tenant turnover: Average office rent rose to 645 yuan/sq.m/month, up 8 yuan YoY, while occupancy rate dropped 3 percentage points to 93.2% [6] - Mall rental rates continued to rise while apartment occupancy improved significantly: Average mall rent increased to 1,335 yuan/sq.m/month, up 64 yuan YoY, while apartment occupancy rate improved by 4.9 percentage points to 89.3% [7] Financial Performance - Gross margin improved to 60.51% in 1-9M 2024, up 0.17 percentage points YoY [6] - Three expense ratio decreased to 5.39%, down 0.70 percentage points YoY [6] - Total assets stood at 12.12 billion yuan as of September 2024, down 4.61% YoY [10] - Operating cash flow was 1.495 billion yuan in 1-9M 2024, down 7.09% YoY [10] Business Segments - Office segment: 356,200 sq.m leased, generating 1.121 billion yuan in rental income [7] - Mall segment: 180,500 sq.m leased, generating 929 million yuan in rental income [7] - Apartment segment: 80,100 sq.m leased, generating 140 million yuan in rental income [7] Valuation and Forecast - 2024-2025 EPS forecast at 1.27 yuan and 1.30 yuan respectively [8] - 2024 PE ratio estimated at 20-21x, with fair value range of 25.32-26.58 yuan [8] - Revenue growth expected at 0.1% in 2024, 4.0% in 2025, and 5.3% in 2026 [12] - Net profit growth projected at 1.3% in 2024, 3.0% in 2025, and 4.5% in 2026 [12] Market Performance - Stock price closed at 22.32 yuan on November 12, 2024 [2] - 52-week price range between 16.52 yuan and 30.34 yuan [2] - Total market capitalization of 22.48 billion yuan [2]