C&D INC.(600153) 申万宏源·2025-01-03 00:18Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [10]. Core Insights - The company plans to distribute a mid-term cash dividend of 0.4 CNY per share, which represents 71% of its performance in Q3 2024, aligning with its high dividend strategy for 2024 and 2025, targeting a dividend of at least 0.7 CNY per share, resulting in a projected dividend yield of 6.97% [10]. - The acquisition of a 10% stake in Jianfa Real Estate for 3.1 billion CNY has been approved by the shareholders, which is expected to enhance the company's profitability and asset concentration [10]. - The company has shown improvement in its real estate sales ranking, with a focus on first and second-tier cities, and maintains a strong inventory structure with minimal heavy inventory [10]. Financial Summary - Total revenue for 2023 is projected at 763.678 billion CNY, a decrease of 8.3% year-on-year, with a net profit of 13.104 billion CNY, reflecting a significant increase of 108.8% compared to the previous year [3][5]. - The company’s earnings per share (EPS) for 2023 is estimated at 4.29 CNY, with a projected EPS of 1.09 CNY for 2024 [3]. - The return on equity (ROE) is expected to be 18.9% in 2023, dropping to 2.9% in 2024, before recovering to 6.6% by 2026 [3]. Market Data - As of January 2, 2025, the closing price of the stock is 10.04 CNY, with a market capitalization of 29.111 billion CNY [9]. - The company has a price-to-book ratio of 0.5 and a dividend yield of 6.97% based on the most recent dividend announcements [9]. Investment Analysis - The report emphasizes the company's commitment to a high dividend strategy and the strategic acquisition of quality assets, which are expected to boost both performance and valuation [10]. - The projected net profits for 2024, 2025, and 2026 are 32.2 billion CNY, 40.3 billion CNY, and 42.0 billion CNY respectively, with corresponding price-to-earnings ratios of 9.2X and 7.3X for 2024 and 2025 [10].