核心盈利同比增长12%，旗舰项目深圳K11 Eocast年内开业

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 15.6 [2][3]. Core Views - The company's core profit from continuing operations increased by 12% year-on-year, with a flagship project, Shenzhen K11 ECOAST, set to open within the year [2][3]. - The company has a robust land bank that is expected to support a recovery in sales, with significant land reserves in both Hong Kong and mainland China [3]. - The company is focused on improving operational efficiency and optimizing its financial structure through asset sales and debt buybacks [3]. Financial Summary - Revenue (in million HKD) is projected to decline significantly from 95,214 in 2023A to 45,910 in 2024E, before gradually increasing to 48,219 by 2026E, reflecting a -51.8% change in 2024E [4]. - Core net profit (in million HKD) is expected to decrease from 901 in 2023A to 670 in 2024E, with a gradual recovery to 751 by 2026E, indicating a -25.6% change in 2024E [4]. - The earnings per share (in HKD) is forecasted to drop from 0.37 in 2023A to 0.27 in 2024E, with a slight recovery to 0.30 by 2026E, showing a -25.4% change in 2024E [4]. - The company’s dividend per share (in HKD) is expected to decrease from 0.76 in 2023A to 0.40 in 2024E, maintaining this level through 2026E, resulting in a dividend yield of 4.6% [4]. Operational Insights - The company’s rental income increased by 12% year-on-year to HKD 2.67 billion, with Hong Kong rental income growing by 17% to HKD 1.75 billion [3]. - The company has a significant land bank of 8 million square feet in Hong Kong, with 90% of its agricultural land located in the "Northern Metropolis" area, indicating strong development potential [3]. - The company plans to launch 2,500 residential units in the next six months to capitalize on market opportunities [3]. Financial Health - As of December 2023, the company’s net debt ratio is 49.9%, with available funds of approximately HKD 52 billion, including cash and bank deposits of HKD 39 billion [3]. - The company aims to increase the target for selling non-core projects from HKD 6 billion to HKD 8 billion to accelerate cash flow [3].