Huafa Properties(SH:600325) Tai Ping Yang Zheng Quan·2025-08-19 13:44Investment Rating - The report maintains an "Accumulate" rating for Huafa Co., Ltd. (600325) with a target price based on the last closing price of 4.94 [1]. Core Insights - The company reported a significant revenue growth of 53.8% year-on-year, achieving an operating income of 38.2 billion yuan in the first half of 2025. However, the net profit attributable to shareholders decreased by 86.4% to 170 million yuan due to declining gross margins and asset impairment losses [4][5]. Summary by Sections Financial Performance - In the first half of 2025, Huafa Co., Ltd. achieved an operating income of 38.2 billion yuan, a year-on-year increase of 53.8%. The net profit attributable to shareholders was 170 million yuan, down 86.4% compared to the previous year. The overall gross margin was 14.16%, a decrease of 0.16 percentage points from the previous year [4][5]. Sales and Market Position - The company focused on accelerating sales and achieved a contract sales area of 1.898 million square meters, an increase of 13.8% year-on-year. The total sales reached 50.22 billion yuan, up 11.1% year-on-year, ranking 11th in the CRIC sales list [6]. Investment Strategy - The company continues to focus on core cities and regions for land acquisition, with two plots acquired in Chengdu in the first half of 2025. The total area under construction decreased by 33.5% year-on-year to 6.6978 million square meters [7]. Financing and Cost Management - Huafa Co., Ltd. maintains diverse financing channels, with a comprehensive financing cost of 4.76%, down 46 basis points from the end of 2024. The company has received approval for various financing instruments, including a targeted convertible bond and asset-backed notes [8][10]. Profit Forecast - The report adjusts profit forecasts for the company, estimating net profits of 784 million yuan, 875 million yuan, and 1.012 billion yuan for 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios are projected to be 17.35X, 15.53X, and 13.43X [11].