CMSK(001979) KAIYUAN SECURITIES·2025-03-18 10:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][12][19] Core Views - The company focuses on acquiring land in core cities, which provides a sufficient supply of sellable properties. However, the performance is impacted by impairment provisions related to high-priced land inventory from 2020-2021 [6][7][12] - The company reported a total operating revenue of 1789.48 billion yuan in 2024, a year-on-year increase of 2.25%, while the net profit attributable to shareholders decreased by 36.09% to 40.39 billion yuan [6][9] - The company’s gross margin and net margin for 2024 were 14.61% and 2.34%, respectively, both showing a decline compared to the previous year [6][9] Summary by Sections Financial Performance - In 2024, the company achieved total operating revenue of 1789.48 billion yuan, up 2.25% year-on-year, but the net profit attributable to shareholders fell to 40.39 billion yuan, down 36.09% [6][9] - The gross margin and net margin were 14.61% and 2.34%, respectively, reflecting a decrease of 1.28 percentage points and 2.86 percentage points year-on-year [6][9] - The company’s cash flow from operating activities was 319.64 billion yuan, an increase of 1.69% year-on-year, with a cash balance of 1003.51 billion yuan at the end of 2024 [6] Sales and Land Acquisition - The company recorded a contracted sales amount of 2193.02 billion yuan in 2024, a decrease of 25.31% year-on-year, with a sales area of 935.90 million square meters, down 23.50% [7] - The company ranked first in sales amount in five cities, including Xi'an and Changsha, and maintained a stable position in the overall sales ranking [7] - In 2024, the company acquired 26 land parcels with a total construction area of approximately 2.25 million square meters and a total land price of about 48.6 billion yuan, with an investment intensity of 22% [7] Strategic Focus - The company is committed to implementing its "AI+" strategy, exploring advanced technologies for smart services and operations, which contributed to a 12% year-on-year increase in income from held properties [8] - The investment in "core 10 cities" accounted for 90% of total investment, with 59% of the investment in first-tier cities [7][8]