C&D INTL GROUP(01908) 中银国际·2025-03-28 03:26Investment Rating - The investment rating for the company is "Buy" with a market price of HKD 16.24 and a sector rating of "Outperform" [2]. Core Views - The company has shown steady revenue growth with a slight decline in net profit. The gross margin has rebounded, and cash on hand has increased by double digits. The company maintains a strong strategic focus on core cities in first and second-tier areas, which lays a solid foundation for future high-quality development. Despite the ongoing industry sales slump, the company has demonstrated resilience in both sales and land acquisition, leading to a maintained "Buy" rating [5]. Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of RMB 1429.9 billion, a year-on-year increase of 6.4%. The net profit attributable to shareholders was RMB 48.0 billion, a decrease of 4.6%. The proposed cash dividend is HKD 1.2 per share, with a payout ratio of 47% [4][5]. - The gross margin for 2024 was 13.3%, an increase of 2.2 percentage points year-on-year. The net profit margin and attributable net profit margin were 4.5% and 3.4%, respectively, both showing slight declines [8][11]. Revenue and Profit Forecast - The company has adjusted its revenue forecasts for 2025-2026 due to the current industry conditions. Expected revenues for 2025, 2026, and 2027 are RMB 1478 billion, RMB 1383 billion, and RMB 1351 billion, with year-on-year growth rates of 3%, -6%, and -2%, respectively. The net profit for the same years is projected to be RMB 50 billion, RMB 50 billion, and RMB 51 billion, with growth rates of 3%, 1%, and 2% [5][7]. Cash and Debt Management - As of the end of 2024, the company held cash of RMB 572.6 billion, a year-on-year increase of 12%. The interest-bearing debt was RMB 845.0 billion, up 5.7%. The net debt ratio stood at 26.6%, and the cash-to-short-term debt ratio was 9.35X, indicating a strong liquidity position [8][18][21]. Sales and Market Position - The company ranked seventh in the industry for sales in 2024, with a sales amount of RMB 1335 billion, a decline of 29.4% year-on-year. The sales area was 611 million square meters, also down 29.3%. The sales price per square meter was RMB 20,500, a decrease of 1.1% [23][31][25]. - The sales return rate reached 102%, an increase of 4 percentage points from the previous year, indicating effective cash collection [8]. Land Acquisition - The company acquired land worth RMB 530 billion in 2024, a decrease of 40% year-on-year, ranking sixth in the industry for land acquisition. The land acquisition intensity was 40%, which, despite a decline, remains relatively high [38][44].