C&D INTL GROUP(01908) KAIYUAN SECURITIES·2024-02-22 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5] Core Views - The company leverages its state-owned background for steady expansion and continues to achieve counter-cyclical performance growth [5] - The company has shown robust sales growth, with a 43% year-on-year increase in total sales amounting to 940.9 billion yuan in the first half of 2023 [6][34] - The company maintains a strong financial position with a decrease in financing costs and a solid profit forecast for the coming years [7][62] Summary by Sections 1. Company Background and Expansion Strategy - The company is a subsidiary of Xiamen C&D Group, focusing on real estate development and investment services across China [13][19] - It has a strong state-owned background and a mature management team, which supports its market expansion efforts [19][24] 2. Sales Performance and Land Acquisition - The company achieved a total sales amount of 940.9 billion yuan in H1 2023, a 43% increase year-on-year [6][34] - In H1 2023, the company acquired 46 quality land parcels across 25 cities, with a total land payment of 684 billion yuan, reflecting a 24% year-on-year increase [39] - The land acquisition strategy focuses on high liquidity and profitability, with 86% of the land value concentrated in first and second-tier cities [39][43] 3. Financial Performance - The company reported a revenue of 243.8 billion yuan in H1 2023, a 44% increase year-on-year, and a net profit of 12.8 billion yuan, up 52% [7][15] - The company maintains a healthy balance sheet with a sold but unrecognized revenue of 2,490.4 billion yuan, covering 2.5 times its 2022 revenue [62] - Financing costs have decreased to 3.97%, down 36 basis points from the end of 2022 [7][62] 4. Property and Construction Business Development - The company operates in the full lifecycle of real estate services, with significant contributions from its subsidiaries, C&D Property and C&D Engineering [56] - C&D Property reported a revenue increase of 37.5% in H1 2023, while C&D Engineering saw a remarkable 217% growth in revenue for the first three quarters of 2023 [56][54] 5. Future Outlook and Investment Recommendations - The company is expected to maintain strong revenue growth, with projected net profits of 50.0 billion, 68.2 billion, and 89.8 billion yuan for 2023, 2024, and 2025 respectively [5][8] - The current price-to-earnings ratio is projected to be 4.5, 3.3, and 2.5 for the years 2023, 2024, and 2025, indicating attractive valuation levels [5][8]