CMSK(SZ:001979) HTSC·2025-06-05 10:19Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.52 RMB [7][8]. Core Views - The company has significantly increased its land acquisition efforts and is actively promoting asset securitization through multiple REIT platforms, which has led to optimized financing costs [1][2]. - Sales volume has shown a narrowing decline, with a total sales area of 2.059 million square meters and sales revenue of 49.83 billion RMB in the first four months of 2025, reflecting a year-on-year decrease of 20.06% and 15.29% respectively, but with a notable increase in average selling price [2]. - The company is enhancing the operational efficiency of its held properties, which include commercial centers, rental apartments, office buildings, industrial parks, and hotels, while pushing for the securitization of investment properties [3]. Summary by Sections Development Business - In the first four months of 2025, the company achieved a sales area of 2.059 million square meters and sales revenue of 49.83 billion RMB, with a year-on-year decline of 20.06% and 15.29%, respectively, indicating a 10 percentage point narrowing in sales revenue decline compared to 2024 [2]. - The average selling price increased to 24,000 RMB per square meter, a year-on-year growth of 6.0% [2]. - The land acquisition intensity has significantly increased, exceeding 50% in the first four months of 2025, compared to 22% in the previous year [2]. Asset Management Business - The company has a comprehensive layout of held properties and is leveraging REITs to advance asset securitization, with established REITs for industrial parks, rental housing, and commercial properties [3]. - The company is continuously improving the management capabilities of its held properties to meet the yield requirements for REIT issuance [3]. Performance - The company's gross margin was approximately 14.6% in 2024, still at a low point, but the land acquisition gross margin in 2023 has been higher than the settlement gross margin for 2024, indicating potential for long-term improvement [4]. - The average financing cost was reduced to 2.99% last year, with expectations for further reductions this year [4]. Profit Forecast and Valuation - The company is expected to see an increase in asset revaluation driven by enhanced land acquisition efforts and a complete asset securitization platform [5]. - The earnings per share (EPS) forecasts for 2025-2027 are 0.46, 0.53, and 0.62 RMB, respectively, with a book value per share (BPS) of 12.52, 12.85, and 13.28 RMB [5]. - The company maintains a target price of 12.52 RMB, corresponding to a price-to-book (PB) ratio of 1.0 for 2025 [5].