CMSK(SZ:001979) Changjiang Securities·2025-05-08 09:14Investment Rating - The report maintains a "Buy" rating for the company [9]. Core Insights - The company reported a revenue decline in Q1 2025 but achieved a robust growth in net profit attributable to shareholders, primarily due to an increase in the proportion of project equity recognized [6][11]. - Despite facing downward pressure on annual revenue, the performance outlook remains stable, supported by improved land acquisition performance and a strong financial safety margin [11]. - The company ranks fifth in sales scale within the industry, with a significant improvement in land acquisition, achieving a total land acquisition amount of 20 billion yuan, a 102% increase year-on-year [11]. Financial Performance - In Q1 2025, the company achieved a total revenue of 20.4 billion yuan, down 13.9% year-on-year, while net profit attributable to shareholders rose by 34.0% to 450 million yuan [6][11]. - The gross margin decreased by 2.7 percentage points to 11.8%, and the expense ratio (excluding R&D expenses) increased by 1.2 percentage points to 7.1% [11]. - The company's asset-liability ratio, excluding advance receipts, stood at 60.5%, with a net debt ratio of 51.1% and a cash-to-short-term debt ratio of 1.1, indicating a relatively low leverage level [11]. Sales and Land Acquisition - The company recorded a sales amount of 35.1 billion yuan in Q1 2025, reflecting a 12.8% decline, but the sales drop was significantly narrower compared to the previous year [11]. - The total salable value for 2025 is estimated at 325 billion yuan, with expectations of continued downward pressure on sales [11]. - The land acquisition intensity improved significantly, with the land acquisition amount to sales ratio rising to 57% from 22% in the previous year, focusing on core first- and second-tier cities [11]. Business Development - The company's asset operation business generated a total income of 7.46 billion yuan in 2024, with a stable EBITDA return rate of 6.42% for projects in stable operation for over three years [11]. - The urban service business reported a revenue of 4.46 billion yuan in Q1 2025, up 19.9%, with a net profit of 220 million yuan, reflecting a 15.1% increase [11]. - The company has established three domestic and overseas REITs platforms, enhancing the value of its existing assets and maintaining a leading position in exploring new business models [11].