Investment Rating - The report assigns a "Buy" rating for the company [8]. Core Insights - The company, Greentown China, is a mixed-ownership real estate enterprise rooted in Zhejiang and expanding nationwide, with a sales ranking that has improved from 25th to 6th since 2019 [4][12]. - The company has demonstrated strong land acquisition and sales performance, focusing investments in key cities like Hangzhou and the Beijing-Shanghai area, leading to a high land acquisition intensity and improved profit margins on regular projects [2][7]. - Greentown China benefits from a mixed-ownership structure, receiving support from its largest shareholder, China Communications Construction Company, in land acquisition and financing, while the founder provides operational insights [2][7]. Company Overview - Greentown China was founded in 1995 and listed in Hong Kong in 2006, currently having a major shareholder, China Communications Construction Company, holding approximately 29% of the shares [4][12]. - The company has seen its total sales amount reach 1,487 billion yuan in the first 11 months of 2024, a year-on-year decrease of 12%, while maintaining a leading position in the industry [4][12]. - In 2023, the company achieved a revenue of 1,314 billion yuan, a year-on-year increase of 3.3%, and a net profit of 31.2 billion yuan, up 13.1% year-on-year [4][12]. Resource Management - The company has improved its land acquisition profit margins significantly, with a land acquisition intensity of approximately 35% in the first 11 months of 2024, leading the industry [5][7]. - Greentown China has focused its investments on around 15 cities since 2022, increasing its investment in high-potential areas [5][7]. - The company has a robust land reserve with a total value of 5,348 billion yuan as of the first half of 2024, with about 50% located in ten strategic core cities [5][7]. Efficiency and Operations - The company is in the first tier of development efficiency, with an average time from land acquisition to construction commencement reduced to 1.7 months in the first half of 2024 [6][7]. - Greentown China has implemented a two-tier organizational structure to enhance operational efficiency, resulting in a tax-adjusted selling and administrative expense ratio of 4.30% in the first half of 2024 [6][7]. - The financial situation of the company is stable, with financing costs decreasing to 4.00% in the first half of 2024, below the industry average [6][7]. Profitability Forecast - The company forecasts net profits of 30 billion yuan, 33 billion yuan, and 38 billion yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-book ratios of 0.59x, 0.56x, and 0.53x [7][8].
绿城中国深度覆盖报告：大浪淘沙始见金，综合优势渐兑现