YUEXIU PROPERTY(HK:00123)2024-04-02 16:00Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [1] Core Views - The company reported a steady growth in revenue with a 10.8% year-on-year increase, achieving a total revenue of 802.2 billion RMB in 2023. However, the net profit attributable to shareholders decreased by 19.4% to 31.9 billion RMB due to declining settlement profit margins and losses from investment properties [5][6] - The company has a strong cash position, with cash on hand increasing by 34.0% year-on-year to 29.3 billion RMB, and a sales target of 147 billion RMB for 2024, representing a 3.5% increase from the previous year [5][6] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 802.2 billion RMB, a 10.8% increase from the previous year. The net profit attributable to shareholders was 31.9 billion RMB, down 19.4% year-on-year, while core net profit decreased by 17.5% to 34.9 billion RMB [5][6][9] - The gross margin for 2023 was 15.3%, a decline of 5.1 percentage points compared to the previous year. The company’s net profit margin, attributable net profit margin, and core net profit margin were 5.7%, 4.0%, and 4.4%, respectively, all showing a year-on-year decline [5][6][9] Sales and Market Position - The company exceeded its 2023 sales target, achieving a sales volume of 1,420.3 billion RMB, a 13.6% increase year-on-year. The average selling price was 31,911 RMB per square meter, up 5.7% year-on-year [5][6][17] - The company maintained its leading position in the Greater Bay Area and Guangzhou, with sales in the Greater Bay Area reaching 716.0 billion RMB, a 20.0% increase year-on-year [5][6][17] Land Acquisition and Development - The company focused on land acquisition in core first- and second-tier cities, adding 28 plots of land in 11 cities in 2023, with a total land reserve of 2,567 million square meters [5][6][19] - The company’s land acquisition methods included public bidding, cooperation, and land leasing, with public bidding accounting for 48% of the new land acquired [5][6][19] Financial Health - The company’s total assets reached 401.2 billion RMB by the end of 2023, with total liabilities of 299.0 billion RMB, resulting in a debt-to-equity ratio of 73.5% [5][6][23] - The weighted average financing cost decreased to 3.82% in 2023, with a cash-to-short-term debt ratio of 1.27X, indicating a strong liquidity position [5][6][15][12]