CHINA OVERSEAS(HK:00688) Guoxin Securities·2025-04-07 05:42Investment Rating - The investment rating for the company is "Outperform the Market" [4][18]. Core Views - The company reported a decline in net profit attributable to shareholders by 39%, with operating revenue of 185.2 billion yuan, a year-on-year decrease of 9%. The core net profit, excluding foreign exchange gains and property revaluation, was 15.7 billion yuan, down 34% year-on-year. The decline in net profit is primarily attributed to a decrease in turnover scale and gross profit margin, as well as a decline in fair value gains from investment properties [1][7]. - Despite the challenges, the company achieved a slight increase in sales, focusing on core cities. The total sales amount reached 310.7 billion yuan, a slight increase year-on-year, with a sales area of 11.49 million square meters, down 14% year-on-year. The company maintained the highest market share in first-tier cities, with a focus on quality land reserves, totaling 28.77 million square meters, of which 85% is located in first-tier and strong second-tier cities [10][12]. - The company's financial position remains strong, with a net debt ratio of 29.2% and a cash-to-short-term debt ratio of 3.5 times. The company has reduced its interest-bearing debt to 241.6 billion yuan, maintaining a low asset-liability ratio and net borrowing ratio within the industry. The average financing cost is 3.1%, and the company received a credit rating upgrade to "A-" from S&P Global [2][12]. Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 185.2 billion yuan, a decrease of 9% year-on-year. The net profit attributable to shareholders was 15.6 billion yuan, down 39% year-on-year. The core net profit was 15.7 billion yuan, a decline of 34% year-on-year [1][7]. - The company declared a final dividend of 0.30 HKD per share, representing 38% of the net profit attributable to shareholders for the year [1][7]. Sales and Market Position - The company recorded a sales amount of 310.7 billion yuan, a slight increase year-on-year, and ranked first in the industry for equity sales. The sales area was 11.49 million square meters, down 14% year-on-year. The company maintained leading market shares in Beijing, Shanghai, and Shenzhen [10][12]. - The company focused on core cities, with 77% of its new land investments in first-tier cities, totaling 80.6 billion yuan for 22 new land acquisitions [10][12]. Financial Health - As of the end of 2024, the company had an asset-liability ratio of 48.2% and a net debt ratio of 29.2%. The cash-to-short-term debt ratio was 3.5 times, indicating a strong financial position. The company achieved a sales collection of 286.2 billion yuan, with a collection rate of 92.1% [2][12]. - The company’s average financing cost was 3.1%, and it received a credit rating upgrade to "A-" from S&P Global, reflecting a stable outlook [2][12].