Huafa Properties(600325) 东吴证券·2025-03-18 03:35Investment Rating - The report maintains a "Buy" rating for Huafa Group (600325) [1] Core Views - In 2024, the company reported total revenue of 59.992 billion yuan, a year-on-year decrease of 16.84%, and a net profit attributable to shareholders of 951.3 million yuan, down 48.24% year-on-year [7] - The decline in revenue is attributed to the scale of project delivery and various factors impacting performance, including a decrease in gross margin and an increase in financial expenses [7] - The company has maintained its position in the top 10 of the industry for five consecutive years, with total sales of 105.44 billion yuan in 2024, despite a 16.3% year-on-year decline [7] - The investment strategy focuses on core cities, acquiring quality land through public bidding and equity cooperation, with a land acquisition amount of 9.47 billion yuan in 2024 [7] - The company is actively repurchasing shares to boost market confidence, with plans to buy back shares at a price not exceeding 9.83 yuan per share [7] - The profit forecast for 2025-2026 has been adjusted to 1.03 billion yuan and 1.14 billion yuan, respectively, with an expected EPS of 0.37 yuan and 0.41 yuan [7] Summary by Sections Financial Performance - Total revenue for 2024 is projected at 59.992 billion yuan, with a year-on-year decline of 16.84% [1] - Net profit attributable to shareholders is expected to be 951.3 million yuan, down 48.24% year-on-year [1] - The gross margin for real estate development sales decreased by 3.7 percentage points to 14.3% [7] Sales and Market Position - The company achieved total sales of 105.44 billion yuan in 2024, maintaining its position in the top 10 of the industry [7] - The East China region accounted for 43.8% of total sales, while the South China region showed significant growth [7] Investment Strategy - The company adopts a cautious investment strategy, focusing on core cities and acquiring quality land [7] - The land acquisition amount in 2024 was 9.47 billion yuan, with a decrease in investment intensity by 23.4 percentage points [7] Share Repurchase and Financing - The company plans to repurchase shares to enhance market confidence, with a total repurchase amount between 300 million to 600 million yuan [7] - The average financing cost decreased by 26 basis points to 5.2% in 2024 [7] Earnings Forecast - Adjusted net profit forecasts for 2025 and 2026 are 1.03 billion yuan and 1.14 billion yuan, respectively [7] - Expected EPS for 2025 and 2026 is 0.37 yuan and 0.41 yuan, with corresponding P/E ratios of 15.5X and 14.0X [7]