CAITONG SECURITIES·2026-03-24 12:54Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a stable performance in its DP business with a revenue of HKD 131 billion, a year-on-year increase of 1%, while the overall gross margin decreased [7] - The sales revenue significantly increased due to the Jinling Huating project, achieving a contract sales amount of HKD 34.7 billion, a year-on-year increase of 175% [7] - The company maintained a high dividend policy, distributing a total dividend of HKD 1.35 per share, resulting in a payout ratio of 97% based on adjusted earnings per share of HKD 1.39 [7] - The forecast for net profit attributable to shareholders for 2026-2028 is HKD 1.2 billion, HKD 3.3 billion, and HKD 3.8 billion, representing year-on-year growth of 27.6%, 172.0%, and 16.5% respectively [7] Financial Performance Summary - For the fiscal year 2025, the company achieved a revenue of HKD 19.568 billion, a slight increase of 0.4% year-on-year, with a net profit of HKD 938 million, up 16% year-on-year [7] - The projected revenues for 2026 and 2027 are HKD 13.891 billion and HKD 21.390 billion, reflecting a year-on-year decrease of 29.01% and an increase of 53.98% respectively [6] - The earnings per share (EPS) for 2026 is projected to be HKD 0.82, with a price-to-earnings (P/E) ratio of 25.68 [6] - The company's return on equity (ROE) is expected to improve from 1.15% in 2026 to 3.52% in 2028 [6] Market Performance - The company's stock price closed at HKD 21.18 on March 23, 2026, with a circulating share capital of 1.451 billion shares [2] - The company has experienced a market performance of -17% over the last 12 months, compared to the Hang Seng Index and the real estate sector [4]