EBSCN·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for China Resources Land (1109.HK) [2] Core Views - The company achieved a revenue of 251.1 billion yuan in 2023, a year-on-year increase of 21.3%, with a net profit attributable to shareholders of 31.4 billion yuan, up 11.7% year-on-year [1][2] - The core net profit remains stable, with a significant contribution from operational business profits, which accounted for 34.4% of the core net profit, an increase of 10.4 percentage points year-on-year [1] - The company has a strong land reserve, with 13.25 million square meters added in 2023, and 93% of the total saleable value located in first and second-tier cities [1] Summary by Sections Financial Performance - In 2023, the company reported a development business settlement revenue of 212.1 billion yuan, a 20.4% increase year-on-year, driven by the timely settlement of previously sold properties at an average price of 17,900 yuan per square meter, up 25.4% year-on-year [1] - The overall gross profit margin was 25.2%, a decrease of 1 percentage point year-on-year, while the gross margin for development business was 20.7%, down 2.3 percentage points year-on-year [1] - The core net profit attributable to shareholders was 27.8 billion yuan, a 2.9% increase year-on-year, with a core EPS of 3.89 yuan [1][2] Sales and Market Position - The company achieved a sales volume of 307 billion yuan in 2023, a 1.9% increase year-on-year, maintaining its position as the fourth largest in the industry with a market share increase of 0.3 percentage points [1] - The company’s asset management scale reached 427.5 billion yuan, a 19.2% increase year-on-year, with a total of 76 shopping centers in operation [1] Future Outlook - The report adjusts the core EPS forecasts for 2024 and 2025 to 3.94 yuan and 4.09 yuan respectively, with a new forecast for 2026 at 4.47 yuan [2] - The current price corresponds to a PE ratio of 5.7 for 2024, 5.5 for 2025, and 5.0 for 2026, indicating a stable outlook for the company as a central enterprise in real estate with robust sales and ample core land reserves [2]