CMSK(SZ:001979) Soochow Securities·2024-03-18 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a slight decline in revenue for 2023, but a significant recovery in net profit, which increased by 48.2% year-on-year, aligning with expectations [3] - The company ranked fifth in sales within the industry, demonstrating strong stability amid market fluctuations, with a focus on high-energy cities [3] - The company has reduced financing costs significantly and has a high dividend payout ratio, reflecting its commitment to shareholder returns [3][4] Financial Performance Summary - Total revenue for 2023 was 175.01 billion yuan, a year-on-year decrease of 4.4% [3] - Net profit attributable to shareholders was 6.32 billion yuan, a year-on-year increase of 48.2% [3] - Earnings per share (EPS) for 2023 was 0.70 yuan, with projected EPS of 1.03 yuan for 2024 and 1.27 yuan for 2025 [4] - The company’s price-to-earnings (P/E) ratio is projected to be 9.22 for 2024 and 7.47 for 2025, indicating attractive valuation levels [4] Sales and Market Position - The company achieved a contracted sales area of 12.234 million square meters and a sales amount of 293.64 billion yuan in 2023, ranking fifth in the industry [3] - The sales focus is on high-energy cities, with 91% of sales coming from the "Strong Heart 30 Cities" initiative [3] Investment Strategy - The company acquired 55 land parcels in 2023, with a total land price of 113.4 billion yuan, focusing 51% of its investments in first-tier cities [3] - The company’s land acquisition strategy is aimed at maintaining stable future sales growth [3] Financing and Dividend Policy - The company has successfully reduced its overall financing cost to 3.5%, a decrease of 42 basis points from the beginning of the year [3] - The proposed cash dividend is 3.2 yuan per 10 shares, raising the cash dividend ratio to 45.9% [3]