Huafa Properties(SH:600325) Shenwan Hongyuan Securities·2025-10-31 08:22Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance decline was below expectations, but sales scale remains stable. The company reported a significant drop in net profit and a decrease in profit margins, which contributed to the overall performance shortfall [6][7] - The company has a strong presence in core first and second-tier cities, with a stable sales performance despite a slight year-on-year decline in sales amount [6] - The company is in a favorable financial position, maintaining a green status under the "three red lines" policy, indicating smooth financing and a diversified approach to capital raising [6] Financial Data and Profit Forecast - Total revenue for 2025 is estimated at 69,471 million, with a year-on-year growth rate of 15.8%. The net profit attributable to the parent company is projected to be 214 million, reflecting a significant decline of 77.5% [5] - The company achieved a total revenue of 51,750 million in the first three quarters of 2025, with a year-on-year increase of 63.6%, but the net profit was only 102 million, down 92.3% [5][6] - The gross profit margin for 2025 is expected to be 13.5%, with a return on equity (ROE) of 1.1% [5] Sales and Market Position - In Q3 2025, the company recorded sales of 633 billion, a year-on-year decrease of 3%, ranking 11th in the sales leaderboard [6] - The company has increased its land acquisition by 106% year-on-year, focusing on core urban areas [6] Financial Stability - As of Q3 2025, the company had cash and cash equivalents of 346.9 billion, a year-on-year increase of 17%, and a net debt ratio of 77% [6] - The company has successfully issued convertible bonds totaling 4.8 billion, enhancing its financing capabilities [6]