KAIYUAN SECURITIES·2025-08-29 08:57Investment Rating - The investment rating for Longfor Group is maintained as "Buy" [6] Core Views - Longfor Group reported an increase in turnover scale for the first half of 2025, with a stable growth in operational and service businesses despite pressure on gross profit margins [6] - The company is expected to see a recovery in profitability, with projected net profits for 2025-2027 being 6.87 billion, 7.26 billion, and 7.64 billion RMB respectively, corresponding to EPS of 0.98, 1.04, and 1.09 RMB [6] Financial Performance - For the first half of 2025, the company achieved a revenue of 58.75 billion RMB, a year-on-year increase of 25.4%, with real estate development revenue at 45.48 billion RMB, up 34.7% [7] - The net profit attributable to shareholders was 3.22 billion RMB, down 45.2%, with a core net profit of approximately 1.38 billion RMB [7] - The gross profit margin was 12.6%, a decrease of 7.9 percentage points year-on-year [7] Debt and Cash Management - As of the end of the first half of 2025, the company had interest-bearing debt of 169.8 billion RMB, reduced by 6.5 billion RMB since the beginning of the year [7] - The cash-to-short-term debt ratio was 1.74 times, with cash on hand amounting to 44.67 billion RMB [7] Sales and Land Reserves - The sales amount for the first half of 2025 was 35.01 billion RMB, a decrease of 31.5% year-on-year, with a sales area of 2.615 million square meters, down 28.5% [8] - The total land reserve as of the end of the first half was 28.4 million square meters, with an equity ratio of 74.4% [8] Operational Business - The operational revenue for the first half of 2025 was 7.01 billion RMB, a year-on-year increase of 2.5%, with a gross profit margin of 77.7% [9] - The company opened 12.7 thousand rental units under its brand "Guan Yu," achieving a rental rate of 95.6% [9]