BUCID(SH:600266) HTSC·2025-04-29 04:10Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 7.32 [7][8]. Core Views - The company reported a significant revenue increase of 436% year-on-year in Q1 2025, reaching RMB 6.61 billion, primarily due to a substantial increase in project completions [1][2]. - Despite the revenue growth, net profit was only RMB 0.4 billion, recovering from a loss of RMB 0.33 billion in Q1 2024, as profits were partially offset by declines in financial assets [1][2]. - The company is expected to benefit from improvements in sales, project completions, and urban village renovations, particularly in the stabilizing Beijing real estate market [1][2]. Summary by Sections Revenue and Profitability - In Q1 2025, the company achieved a revenue of RMB 6.61 billion, a 436% increase year-on-year, driven by a 197% increase in completed area to 161,000 square meters [2]. - The profit contribution from completed projects was offset by a decline in stock prices of financial assets, leading to an estimated pre-tax profit drag of approximately RMB 260 million [2]. Sales Performance - The company's sales amount in Q1 2025 decreased slightly by 2% year-on-year to RMB 5.38 billion, with an average selling price rising to RMB 87,000 per square meter [3]. - New project launches in major cities are expected to significantly increase sales value throughout the year, contributing to a return to positive sales growth [3]. Financing and Investment Strategy - The company successfully issued RMB 2 billion in 3-year medium-term notes at a low interest rate of 2.49%, maintaining access to low-cost financing [4]. - Although there were no new land acquisitions in Q1 2025, the company plans to focus on high-quality land resources in Beijing and Shanghai [4]. Profit Forecast and Valuation - The profit forecast for the company remains at RMB 516 million, RMB 840 million, and RMB 857 million for 2025, 2026, and 2027 respectively [5]. - The estimated Book Value per Share (BPS) for 2025 is RMB 10.92, with a target price set at RMB 7.32 based on a projected Price-to-Book (PB) ratio of 0.67 [5][6].