Seazen(SH:601155) HTSC·2025-04-30 08:08Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 17.50 RMB [8][9]. Core Insights - The company reported a significant recovery in net profit, achieving a net profit of 304 million RMB in Q1 2025, a year-on-year increase of 34.0%, despite a revenue decline of 32.2% to 9.74 billion RMB [1][2]. - The improvement in net profit is attributed to a reduction in impairment losses and a steady increase in commercial revenue, which led to an overall gross margin increase of 4.8 percentage points to 29.5% [2]. - The company's commercial operations showed robust growth, with total commercial revenue reaching 3.45 billion RMB in Q1 2025, a year-on-year increase of 13.5% [3]. Summary by Sections Financial Performance - In Q1 2025, the company achieved revenue of 9.74 billion RMB, down 32.2% year-on-year, while net profit attributable to shareholders was 304 million RMB, up 34.0% year-on-year, with an EPS of 0.13 RMB [1][2]. - The company has not recorded any impairment losses in the current period, contrasting with 210 million RMB in asset impairment losses in the same period last year [2]. Commercial Operations - The commercial segment continues to perform well, with a total revenue of 3.45 billion RMB in Q1 2025, achieving a completion rate of 24.6% of the annual target [3]. - The average occupancy rate of the company's commercial properties remains high at 97.22%, with plans to open four additional commercial projects within the year [3]. Debt Management - The company has successfully reduced its interest-bearing debt to 54.7 billion RMB, down 600 million RMB from the previous year, and meets the "three red lines" standard [4]. - The company faces a short-term debt pressure with a cash shortfall of 3 billion RMB against short-term liabilities, but financing policies are expected to ease this pressure [4]. Profit Forecast and Valuation - The company maintains EPS forecasts of 0.37, 0.44, and 0.53 RMB for 2025, 2026, and 2027 respectively, with a target price set at 17.50 RMB based on a price-to-book ratio of 0.64 times [5].