CMSK(SZ:001979) HTSC·2025-08-29 04:54Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 12.52 [9][10]. Core Views - The company focuses on quality and return enhancement while actively expanding its business, aiming to build product strength to create competitive advantages [3]. - The company has shown resilience in revenue generation, with a slight year-on-year increase in revenue and net profit for H1 2025, indicating a stable operational performance [3][4]. - The company is optimistic about capturing resource integration opportunities amid industry changes, maintaining a positive outlook on its growth potential [3]. Revenue and Profitability - For H1 2025, the company achieved revenue of RMB 51.485 billion, a year-on-year increase of 0.41%, and a net profit of RMB 1.448 billion, up 2.18% year-on-year [3]. - The company's real estate development revenue slightly decreased by 1% to RMB 39.9 billion, but the gross profit margin rebounded by 3.4 percentage points to 16.3% [4]. - The asset management and property management revenues were RMB 3.45 billion and RMB 8.11 billion, reflecting year-on-year increases of 0.4% and 8.0%, respectively [4]. Sales Performance - The company reported a sales amount of RMB 88.89 billion for H1 2025, with a year-on-year decline of 11.9% in sales volume but a 15.3% increase in average selling price to RMB 26,500 per square meter [5]. - The company actively acquired land, with a total land acquisition amount of RMB 35.3 billion, maintaining a land acquisition intensity of 39.7% [5]. Financing and Cost Structure - The company maintains a financing advantage with a comprehensive funding cost of only 2.84%, and the average coupon rate for newly issued bonds is 1.86% [6]. - The financing structure has improved, with bank financing accounting for 66% of total financing, an increase of 3 percentage points year-on-year [6]. Earnings Forecast and Valuation - The company has set a "dual enhancement of quality and return" action plan, with EPS forecasts for 2025-2027 at RMB 0.46, 0.53, and 0.62, respectively [7]. - The company aims to maintain a price-to-book ratio of 1.0 for 2025, reflecting its strong financing advantages and balanced development [7].