C&D INTL GROUP(HK:01908) CAITONG SECURITIES·2025-11-24 13:09Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage [2][61]. Core Insights - The company has entered the top ten in the industry, emphasizing its long-term value through the "Lighthouse Strategy," which focuses on excellent product quality and advanced living concepts [11]. - The company has shown resilience in sales, with a total sales amount of 70.7 billion yuan in the first half of 2025, reflecting a year-on-year increase of 7.1% [7][28]. - The company maintains a healthy financial structure, with a net debt ratio of 33.4% and an average financing cost of 3.17% as of the first half of 2025 [7][51][54]. - The company is expected to achieve net profits of 4.98 billion yuan, 5.22 billion yuan, and 5.67 billion yuan for the years 2025 to 2027, corresponding to PE ratios of 6.9, 6.6, and 6.1 respectively [7][58][61]. Summary by Sections 1. Company Overview - The company has established itself among the top ten in the industry, supported by the strong backing of Xiamen State-owned Assets [11][14]. - The company’s main revenue source is real estate development, covering over 70 cities nationwide [16][19]. 2. Sales Performance - The company’s sales have shown resilience, with a total sales amount of 707 billion yuan in the first half of 2025, a 7.1% increase year-on-year [7][28]. - The average sales price increased to 26,500 yuan per square meter in the first half of 2025, reflecting a 25% year-on-year growth [7][29][31]. - The sales regions are concentrated in key eastern cities, contributing approximately 70% of total sales [36][37]. 3. Investment and Land Acquisition - The company’s land acquisition amount reached 49.5 billion yuan in the first half of 2025, a 17.9% increase year-on-year [7][38][40]. - The land reserve area increased to 12.71 million square meters, with a total value of 249.6 billion yuan [7][46][49]. 4. Financial Health - The company meets the "three red lines" requirements, with a pre-revenue asset-liability ratio of 58.9% and a cash-to-short-term debt ratio of 3.9 times [7][51][52]. - The average financing cost has decreased from 4.69% in 2021 to 3.17% in the first half of 2025 [54][56]. 5. Profitability Forecast - The company’s total revenue is projected to be 141.85 billion yuan, 130.36 billion yuan, and 126.37 billion yuan for 2025 to 2027, with corresponding growth rates of -0.8%, -8.1%, and -3.1% [57][58]. - The gross profit margin is expected to improve to 14.0%, 14.5%, and 15.0% for the same period [57][58].