Investment Rating - The report maintains a "Buy" rating for the company [1][5]. Core Views - The company's 2023 performance met expectations, with revenue of 131.38 billion yuan, a year-on-year increase of 3.3%. However, due to the downturn in the real estate industry and price controls, the company recorded impairment losses of approximately 1.39 billion yuan for non-financial assets and 230 million yuan for expected credit losses. The overall gross margin decreased by 4.3 percentage points to 13.0%, with property sales gross margin down by 5 percentage points to 11.3%. The net profit attributable to shareholders was 3.12 billion yuan, a year-on-year increase of 13.1%, mainly due to a significant reduction in foreign exchange losses compared to 2022 and ongoing cost control measures. The core net profit attributable to shareholders remained flat at 6.42 billion yuan, aligning with expectations. The company declared a dividend of 0.43 yuan per share, corresponding to a dividend yield of approximately 7.9% based on the closing price on March 27, 2024 [4][5]. - The company has seen stable growth in equity sales, with total contract sales amounting to 301.1 billion yuan, a year-on-year increase of 0.3%. The self-invested contract sales amounted to 194.3 billion yuan, down 8.7% year-on-year, but the self-invested sales collection rate exceeded 100%, leading to a 58% year-on-year increase in operating cash flow to 23 billion yuan. The equity sales reached 127.6 billion yuan, up 4.2% year-on-year, with the equity sales ratio increasing by 8 percentage points to 66%, which is expected to enhance net profit attributable to shareholders [4][5]. - The company has increased its land acquisition intensity, balancing profit margins and internal rate of return (IRR). In 2023, the company added 38 projects, corresponding to new land reserves of 5.57 million square meters, with an estimated new value of approximately 142.5 billion yuan, ranking sixth nationwide. The average profit margin for new land reserve projects exceeded 8%, with 58% of the new value located in core cities such as Beijing, Shanghai, and Hangzhou, where sales are assured. Additionally, the company's equity land payments amounted to 59.5 billion yuan, with a land acquisition intensity of approximately 47% relative to equity sales, an increase of 13 percentage points from 2022 [4][5]. - The financing structure has been optimized, with an average financing cost of 4.3% as of the end of 2023, a decrease of 10 basis points year-on-year. The net debt ratio was 63.8%, a slight increase of 1.2 percentage points year-on-year. The proportion of debt maturing within one year accounted for 22.3% of total debt, and the cash-to-short-term debt ratio reached 2.3 times, indicating a secure debt structure [4][5]. Financial Summary - For 2023, the company reported revenue of 1,314 billion yuan, with a year-on-year growth of 3.3%. The net profit attributable to shareholders was 3.12 billion yuan, reflecting a 13.1% increase. The gross margin was 13.0%, and the net profit margin was 2.4% [6][8]. - The projected financials for 2024 and 2025 indicate a slight increase in net profit to 3.13 billion yuan and 3.99 billion yuan, respectively, with growth rates of 0.4% and 27.5% [6][8].
业绩符合预期，权益提升有望增厚利润