Huafa Properties(600325) 国盛证券·2025-03-18 09:36Investment 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 CNY 599.9 billion and a net profit decrease of 48.2% to CNY 9.5 billion [1] - Despite the downturn, the company outperformed the industry in sales, with a contract sales amount of CNY 1,054.4 billion, a decline of only 16.3%, compared to the industry average decline of 30.3% [2] - The company is expected to benefit from a shift in project turnover towards higher-margin projects starting in 2025, which will help stabilize future earnings [1][4] Summary by Sections Financial Performance - In 2024, the company reported a revenue of CNY 599.9 billion, down 16.8% from the previous year, and a net profit of CNY 9.5 billion, down 48.2% [1] - The gross margin decreased by 3.8 percentage points to 14.3%, impacting profit levels [1] - The company recorded asset impairment losses of CNY 18.4 billion and credit impairment losses of CNY 1.26 billion, totaling CNY 19.67 billion, which negatively affected net profit by CNY 12.44 billion [1] Sales and Land Acquisition - The company ranked 10th among the top 100 real estate companies in terms of contract sales, with a sales decline less severe than the industry average [2] - In 2024, the company acquired land in major cities for a total price of CNY 94 billion, with a cautious approach to land acquisition due to market conditions [2] - As of the end of 2024, the company had a total land reserve of 12.12 million square meters, indicating sufficient resources for future development [2] Financial Health and Capital Structure - The company’s financing costs decreased, with a weighted average financing cost of 5.22% at year-end [3] - The total interest-bearing debt was CNY 1,416 billion, with a short-term debt ratio of 16.0% [3] - The company plans to issue targeted convertible bonds totaling up to CNY 5.5 billion to enhance liquidity and support future project development [3] Earnings Forecast - The report adjusts the earnings forecast, projecting revenues of CNY 613.3 billion, CNY 631.7 billion, and CNY 650.2 billion for 2025, 2026, and 2027 respectively [4] - Expected net profits for the same years are CNY 9.8 billion, CNY 11.8 billion, and CNY 12.5 billion, with corresponding EPS of CNY 0.36, CNY 0.43, and CNY 0.46 [4]