CMSK(001979) KAIYUAN SECURITIES·2025-03-03 06:23Investment Rating - The investment rating for the company is "Buy" (maintained) [6][19]. Core Views - The company's sales performance remains stable, but impairment provisions have negatively impacted its earnings. The company reported a year-on-year increase in revenue, while net profit attributable to shareholders decreased significantly due to lower gross margins and increased impairment provisions [6][7]. - The company is focusing on acquiring land in core cities, maintaining a strong market position with sufficient saleable inventory and smooth financing channels. Future market share is expected to continue to rise [6][8]. Financial Performance Summary - In 2024, the company achieved total revenue of 1789.48 billion yuan, a year-on-year increase of 2.25%. However, operating profit fell by 36.54% to 90.00 billion yuan, and net profit attributable to shareholders decreased by 36.09% to 40.4 billion yuan [7]. - The company reported a net cash flow from operating activities of 319.64 billion yuan, a year-on-year increase of 1.69%. By the end of 2024, cash and cash equivalents amounted to 1003.51 billion yuan, up 120.62 billion yuan or 13.66% year-on-year [8]. - The company has made substantial impairment provisions totaling 59.4 billion yuan, which impacted net profit by 43.4 billion yuan. This includes provisions for credit losses, inventory write-downs, and goodwill impairment [9]. Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is adjusted to 40.4 billion, 59.7 billion, and 64.7 billion yuan, respectively, with corresponding EPS of 0.45, 0.66, and 0.71 yuan. The current stock price corresponds to P/E ratios of 22.0, 14.9, and 13.8 times for the respective years [6][10].