Binjiang Group(SZ:002244) Soochow Securities·2025-04-28 05:27Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has achieved a steady increase in sales ranking, becoming the only private real estate enterprise in the TOP10 sales ranking, with a continuous seven-year sales champion status in the Hangzhou market [7] - Despite a slight decline in revenue, the company has shown resilience with a year-on-year increase in net profit due to reduced impairment losses and lower tax expenses [7] - The company has a strong land reserve in core areas, with 70% of its total land reserves located in Hangzhou, providing a solid foundation for future growth [7] - Financially, the company has reduced its debt levels and financing costs, with a significant increase in cash reserves, indicating a robust financial position [7] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 69.15 billion yuan, a decrease of 1.83% year-on-year, while net profit attributable to shareholders was 2.546 billion yuan, an increase of 0.66% [7] - The gross margin for the real estate business decreased by 4.2 percentage points to 12.5% due to the delivery of low-margin projects [7] - The company’s earnings per share (EPS) for 2024 is projected at 0.82 yuan, with a price-to-earnings (P/E) ratio of 12.21 [1][8] Sales and Market Position - The company achieved a total sales volume of 111.63 billion yuan in 2024, a decline of 27.3% year-on-year, but improved its sales ranking by two positions to enter the TOP10 [7] - The company aims to maintain a sales target of over 100 billion yuan in 2025, with a national market share exceeding 1% [7] Land Acquisition and Investment Strategy - In 2024, the company acquired 23 plots of land, with 22 located in Hangzhou, achieving a market share of 37% in the Hangzhou land market [7] - The total land acquisition cost was 44.85 billion yuan, a decrease of 22.2% year-on-year, reflecting a strategic approach to land investment [7] Financial Health - By the end of 2024, the company’s interest-bearing debt decreased by 5.5 billion yuan to 30.5 billion yuan, while cash reserves increased by 10.5% to 32.7 billion yuan [7] - The average financing cost for the company fell by 0.8 percentage points to 3.4% in 2024, indicating improved financial efficiency [7]