Huafa Properties(600325) 太平洋证券·2025-03-19 14:43Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for the stock over the next six months [10][15][16] Core Views - The company's 2024 annual report shows a significant decline in performance, with revenue dropping by 16.8% year-on-year to CNY 599.9 billion and net profit decreasing by 48.2% to CNY 9.5 billion [3][4] - The decline in revenue is attributed to a decrease in the scale of real estate project completions and a reduction in gross margin, which fell by 3.82 percentage points to 14.32% in 2024 [4][5] - Despite the short-term performance pressure, the company maintains a sales scale exceeding CNY 1 trillion for five consecutive years, with total sales of CNY 1,054.44 billion in 2024 [5][6] - The company has successfully expanded its financing channels, achieving a financing cost of 5.22%, down 0.26 percentage points from 2023, and plans to issue CNY 55 billion in convertible bonds [7][8] Summary by Sections Financial Performance - In 2024, the company reported a revenue of CNY 599.9 billion, a decrease of 16.8% from the previous year, and a net profit of CNY 9.5 billion, down 48.2% [3][4] - The gross margin for 2024 was 14.32%, reflecting a decline of 3.82 percentage points compared to 2023 [4] - The company’s total sales for 2024 were CNY 1,054.44 billion, a decline of 16.3% year-on-year, but it has maintained a sales scale above CNY 1 trillion for five years [5] Project Development - The company focuses on acquiring quality projects in first-tier and strong second-tier cities, securing six projects in major cities like Shanghai and Guangzhou in 2024 [6] - As of the end of 2024, the company has a land reserve of 3.7683 million square meters for development and 8.3563 million square meters under construction, a decrease of 29.7% year-on-year [6] Financing and Cost Management - The company has broadened its financing channels, successfully launching a CNY 21.25 billion Pre-reits and planning to issue CNY 55 billion in targeted convertible bonds [7] - The comprehensive financing cost was 5.22%, continuing a downward trend from the previous year [7][8] Future Profitability Forecast - The company is expected to see net profits of CNY 1.557 billion, CNY 1.627 billion, and CNY 1.331 billion for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 10.09X, 9.66X, and 11.80X [8][10]