YUEXIU PROPERTY(HK:00123) BOCOM International·2025-08-27 01:52Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 6.60, indicating a potential upside of 33.9% from the current price of HKD 4.93 [3][6]. Core Insights - The company's 1H25 performance met expectations, with revenue increasing by 34.6% year-on-year to RMB 47.57 billion, driven by a 34.2% increase in real estate development revenue [3][4]. - The company is projected to exceed annual sales of RMB 120 billion, with a contract sales increase of 11% year-on-year to RMB 61.5 billion in the first half of 2025, achieving 51% of the annual sales target [3][4]. - The financing cost has decreased, with an average financing cost down by 41 basis points to 3.16%, and further reductions are expected in the second half of the year [3]. Financial Performance Summary - Revenue for 1H25 reached RMB 47.57 billion, with real estate development and management revenues at RMB 44.03 billion and RMB 1.61 billion, respectively [3][4]. - Core net profit decreased by 12.7% year-on-year to RMB 1.52 billion, aligning with previous forecasts [3][4]. - The gross profit margin fell by 3.1 percentage points to 10.6%, slightly below the predicted range of 12%-13% [3][4]. Sales and Market Position - The company has a total of RMB 2.35 trillion in saleable resources, with over RMB 400 billion expected to be recognized in the second half of 2025 [3]. - As of June 2025, the company had RMB 1.49 trillion in sold but unrecognized revenue, with approximately 29% and 38% located in the Greater Bay Area and East China, respectively [3]. Debt and Liquidity - Operating cash inflow for the first half of 2025 was approximately RMB 4.1 billion, with total borrowings remaining stable at RMB 103.9 billion [3][4]. - The net debt ratio slightly decreased by 1.4 percentage points to 40.3% as of June 2025 [3][4].