CHINA OVERSEAS(HK:00688) EBSCN·2025-04-06 06:15Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported a revenue of 185.15 billion yuan in 2024, a decrease of 8.6% year-on-year, and a net profit attributable to shareholders of 15.64 billion yuan, down 38.9% year-on-year [1][2] - Despite the challenges, the company achieved a sales revenue of 310.69 billion yuan, a slight increase of 0.3% year-on-year, marking two consecutive years of growth [3] - The company is focusing on core cities for land acquisition, securing 22 plots of land with a total price of 80.61 billion yuan, maintaining a reasonable land acquisition intensity [3] - The commercial property operations are steadily developing, contributing to a second growth curve, with rental income from shopping centers increasing by 34.5% year-on-year [3] Summary by Sections Financial Performance - In 2024, the company's revenue was 185.15 billion yuan, with a 9.4% decline in real estate development revenue to 174.72 billion yuan, while commercial property revenue grew by 12.1% to 7.13 billion yuan [2] - The overall gross margin was 17.7%, down 2.6 percentage points year-on-year, and the core net profit margin was 8.5%, down 3.2 percentage points year-on-year [2] - The company’s total interest-bearing debt was 241.56 billion yuan, with a net debt ratio of 29.2% and a cash-to-short-term debt ratio of 4.3 times [4] Profit Forecast and Valuation - The profit forecast for 2025-2026 has been revised down to 16.87 billion yuan and 18.72 billion yuan respectively, with a new forecast for 2027 at 20.79 billion yuan [4] - The current stock price corresponds to a PE ratio of 8.1 for 2025, 7.3 for 2026, and 6.6 for 2027, indicating a favorable valuation [4]