2024-03-24 16:00Investment Rating - The report maintains a "Buy" rating for the company [3][4] Core Views - The company reported a core net profit decrease of 50% year-on-year for 2023, which was in line with expectations, with operational and service businesses contributing over 60% to performance [3] - The company plans to continue increasing the contribution from its operational and service segments [3] - Despite pressure on real estate sales, the company's operational and service segments are expected to provide stable contributions to performance [3] Financial Performance Summary - For 2023, the company achieved a total revenue of 180.737 billion yuan, a year-on-year decrease of 27.9% [3][5] - The net profit attributable to shareholders was 12.85 billion yuan, down 47.3% year-on-year [3][5] - The core net profit was 11.35 billion yuan, reflecting a 49.6% decrease year-on-year [3][5] - The company's earnings per share (EPS) for 2023 was 2.07 yuan, down 49.4% year-on-year [3][5] - The gross profit margin, net profit margin, and core net profit margin were 16.9%, 7.1%, and 6.3%, respectively, with year-on-year declines of 4.2 percentage points, 2.6 percentage points, and 2.7 percentage points [3] Business Segment Performance - The real estate settlement revenue was 155.9 billion yuan, down 31.3% year-on-year, with a settlement area of 10.71 million square meters, also down 31.0% [3] - The company’s diversified business revenue reached 24.9 billion yuan, a year-on-year increase of 6% [3] - The company’s investment income was 1.55 billion yuan, up 9.2% year-on-year [3] Future Outlook - The company has adjusted its earnings forecasts for 2024 and 2025 to 12.9 billion yuan and 13.2 billion yuan, respectively, down from previous estimates of 24.9 billion yuan and 25.8 billion yuan [3] - The company’s current price corresponds to a 2024 price-to-earnings (PE) ratio of only 4.9 times, indicating a favorable outlook for stable growth [3]