C&D INTL GROUP(HK:01908) Ping An Securities·2025-08-25 09:20Investment Rating - The report maintains a "Buy" recommendation for Jianfa International Group (1908.HK) with a current stock price of 18.5 HKD [1][4]. Core Views - The company shows signs of improvement in its financial statements, with revenue and profit expected to grow positively. The first half of 2025 saw a revenue of 34.16 billion CNY, a year-on-year increase of 4.3%, and a net profit of 9.1 billion CNY, up 11.8% year-on-year [4][7]. - The company is benefiting from the release of high-quality residential demand and is actively expanding its land reserves, optimizing its land bank [5][7]. - The company has improved its financial metrics, with a debt-to-asset ratio of 75.9% and a financing cost of 3.17%, down 39 basis points from the end of 2024 [7][8]. Financial Summary - For the first half of 2025, the company reported a gross profit margin of 12.9%, an increase of 1 percentage point year-on-year. The total unsold amount reached 250.4 billion CNY, with 96% of the projects acquired in 2022 or later [7]. - The company achieved a total sales amount of 70.7 billion CNY and an equity sales amount of 53.4 billion CNY in the first half of 2025, representing year-on-year growth of 7% and 5%, respectively [7]. - The average selling price increased by 25% to 26,500 CNY per square meter [7]. Future Projections - Revenue projections for 2025 are estimated at 151.3 billion CNY, with a net profit of 4.93 billion CNY, reflecting a slight increase from previous years [6][10]. - The report anticipates continued improvement in the company's financial performance, with a projected EPS of 2.20 CNY for 2025, and a P/E ratio of 7.7 times [8][11].