Huafa Properties(SH:600325) GOLDEN SUN SECURITIES·2025-09-10 09:43Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The upcoming opening of the Shenzhen Qianhai Ice and Snow World project is expected to enhance the company's performance and operational metrics [3][11]. - The company has a strong state-owned background, which provides substantial support from major shareholders, ensuring liquidity remains robust [3][11]. - The company is expected to leverage the potential market recovery to increase land acquisitions following the issuance of targeted convertible bonds [3][11]. - The company has seen a reduction in land acquisition activities recently, focusing on optimizing its land reserve structure [3][31]. Summary by Sections Project Overview - The Shenzhen Qianhai Ice and Snow World project, developed and wholly owned by the company, is set to open at the end of September, becoming the largest indoor ski resort globally with a total area of 437,000 square meters and a total construction area of 1,311,000 square meters [1][20]. - The project includes diverse facilities such as a 100,000 square meter ice and snow theme park, 100,000 square meters of commercial space, a 49,000 square meter hotel, and 300,000 square meters of sellable talent housing [1][20]. Revenue and Profit Projections - The project is expected to contribute an annual revenue of 650 million yuan and a net profit of 130 million yuan once it reaches maturity [2][25]. - The pricing strategy for the ski tickets is higher than competitors, with price differences ranging from 15% to 27% [2][24]. - The company anticipates receiving over 1.25 million visitors annually, with revenue projections based on a sensitivity analysis estimating a range of 490 million to 920 million yuan [2][26]. Land Acquisition and Reserves - The company plans to acquire land worth 9.4 billion yuan in 2024 and 3.6 billion yuan in the first half of 2025, focusing on core cities [3][31]. - The total land reserve is expected to be 16.29 million square meters by the end of 2024, with a significant portion located in the East China region [3][39]. - The issuance of targeted convertible bonds is anticipated to improve liquidity and facilitate further land acquisitions [3][31]. Financial Forecasts - The company forecasts revenues of 66.26 billion yuan, 68.44 billion yuan, and 69.96 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 255 million yuan, 497 million yuan, and 1.005 billion yuan for the same years [3][5].