业绩大幅改善，资产端持续修复

Investment Rating - Buy rating maintained for the company [1] Core Views - The company achieved revenue of 1750 08 billion yuan in 2023 a year-on-year decrease of 4 37% while net profit attributable to the parent company was 6 319 billion yuan a year-on-year increase of 48 20% [4] - Revenue decline was mainly due to reduced settlement scale while profit growth was driven by lower asset and credit impairment losses and increased equity ratio [5] - Sales remained stable with contracted sales area of 12 2341 million square meters and sales amount of 2936 35 billion yuan ranking among the top five in the industry [6] - The company focused on acquiring land in key cities with 51% of total investment in Beijing Shanghai Guangzhou and Shenzhen [6] - Financial health remained robust with a net debt ratio of 54 58% and cash-to-short-term debt ratio of 1 28 meeting the "three red lines" green criteria [7] - The company optimized its capital structure by replacing high-interest debt with lower-cost financing reducing the comprehensive financing cost to 3 47% [7] Financial Performance and Forecast - Revenue is expected to grow by 15% in 2024 reaching 201 259 billion yuan and further increase to 225 953 billion yuan by 2026 [4] - Net profit attributable to the parent company is forecasted to grow by 29% in 2024 reaching 8 167 billion yuan and further increase to 10 411 billion yuan by 2026 [4] - EPS is projected to be 0 90 yuan in 2024 1 07 yuan in 2025 and 1 15 yuan in 2026 [4] - The company's P/E ratio is expected to decrease from 13 6 in 2024 to 8 3 in 2026 indicating improving valuation [4] Key Financial Ratios - Gross margin was 15 89% in 2023 a decrease of 3 36 percentage points year-on-year [5] - Net profit margin improved to 5 20% in 2023 up by 0 23 percentage points year-on-year [5] - ROE is expected to increase from 2% in 2023 to 3% in 2026 [4] - The company's debt-to-equity ratio is projected to decrease from 76 3% in 2023 to 70 0% in 2026 [8] Strategic Focus - The company's land acquisition strategy focuses on high-tier cities with 99% of investments in "strong core 30 cities" and 88% in "core 6+10 cities" [6] - This strategy is expected to ensure stable and sustainable sales performance in the future [6]