Binjiang Group(SZ:002244) Bank of China Securities·2025-04-28 07:03Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [2] Core Views - The company has shown resilience in a challenging market, achieving a year-on-year increase in net profit despite a slight decline in revenue. The revenue for 2024 was RMB 69.15 billion, down 1.8% year-on-year, while the net profit was RMB 2.55 billion, up 0.7% year-on-year [5][9] - The company aims for a sales target of over RMB 100 billion in 2025, maintaining a strong market position, particularly in Hangzhou, where it has consistently ranked first in sales for seven consecutive years [6][9] - The company has a robust financial position with a healthy cash flow and a significant amount of pre-sales, ensuring future revenue stability [9][27] Summary by Sections Financial Performance - In 2024, the company reported a revenue of RMB 69.15 billion, a decrease of 1.8% from the previous year, while the net profit was RMB 2.55 billion, reflecting a growth of 0.7% [5][10] - The company plans to distribute a cash dividend of RMB 0.82 per 10 shares, representing 10% of the net profit, with a dividend yield of 0.8% [5] Sales and Market Position - The company achieved a sales amount of RMB 111.6 billion in 2024, a decrease of 27.3% year-on-year, but it ranked 9th in the industry, marking its entry into the top ten for the first time [9][29] - In Hangzhou, the company achieved sales of RMB 89.9 billion, significantly outperforming its nearest competitor [9] Land Acquisition and Development - The company has maintained a high land acquisition intensity, securing 23 new land projects in 2024, primarily in Hangzhou, with a total land acquisition amount of RMB 44.9 billion [9][31] - The average floor price for land acquired was RMB 24,000 per square meter, an increase of 38.5% year-on-year [9][37] Financial Health and Cash Flow - The company reported a cash balance of RMB 37.14 billion at the end of 2024, a year-on-year increase of 13.6% [27][28] - The net cash flow from operating activities was RMB 7.67 billion, although it decreased by 76.5% year-on-year due to lower sales [9][24] Future Outlook - The company aims to maintain a sales target of around RMB 100 billion in 2025, with a focus on increasing its market share in key regions [9][31] - The company plans to control its investment amount to around 50% of its sales revenue, indicating a strategic approach to capital allocation [9][31]