Huafa Properties(600325) 国盛证券·2025-03-18 09:38Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company experienced a significant decline in performance in 2024, with a revenue drop of 16.8% year-on-year to 599.9 billion yuan and a net profit decrease of 48.2% to 9.5 billion yuan. The decline is attributed to the downturn in the real estate market and the company's revenue recognition structure [1]. - Despite the challenges, the company has shown resilience in sales, outperforming the industry with a contract sales amount of 1,054.4 billion yuan in 2024, a decline of only 16.3%, compared to a 30.3% drop for the top 100 real estate companies [2]. - The company is expected to benefit from a shift in its revenue recognition structure starting in 2025, with higher profit margin projects in core cities, which will help stabilize future earnings [1][4]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 599.9 billion yuan, down 16.8% year-on-year, and a net profit of 9.5 billion yuan, down 48.2%. The gross margin decreased by 3.8 percentage points to 14.3% [1]. - The company recorded asset impairment losses of 1.84 billion yuan and credit impairment losses of 126 million yuan, totaling 1.967 billion yuan, which impacted net profit by 1.244 billion yuan [1]. Sales and Land Acquisition - The company ranked 10th among the top 100 real estate companies in terms of contract sales in 2024, with a sales decline significantly lower than the industry average [2]. - In 2024, the company acquired land in major cities for a total price of 9.4 billion yuan, reflecting a cautious approach to land acquisition due to the ongoing market downturn [2]. Financial Health - The company has maintained a healthy financial position with a weighted average financing cost of 5.22% and a total interest-bearing debt of 141.6 billion yuan, down 1.7% [3]. - The company plans to issue targeted convertible bonds totaling up to 5.5 billion yuan to enhance liquidity and support future project development [3]. Earnings Forecast - The report adjusts the earnings forecast, projecting revenues of 613.3 billion yuan, 631.7 billion yuan, and 650.2 billion yuan for 2025, 2026, and 2027, respectively. Net profits are expected to be 9.8 billion yuan, 11.8 billion yuan, and 12.5 billion yuan for the same years [4].