Investment Rating - The investment rating for Shenzhen Holdings (00604.HK) is "Buy" [4][25]. Core Views - The company reported a significant decline in performance for 2023, primarily due to the impact of its real estate development business, with total revenue falling by 49.8% year-on-year to HKD 15.83 billion [1][3]. - Despite the overall decline, the company achieved a historical high in contract sales, with a total sales area of 714,000 square meters and a sales amount of approximately RMB 26.59 billion, marking a 38.4% increase [1][3]. - The company’s property investment business saw a revenue increase of 18.8% year-on-year, reaching HKD 1.42 billion, supported by a recovery in the commercial leasing market [1][3]. - The urban comprehensive operation business also showed growth, with revenue of HKD 2.79 billion, a 6.4% increase year-on-year [1][3]. Summary by Sections Financial Performance - In 2023, Shenzhen Holdings recorded a gross profit of HKD 5.11 billion, down approximately 52.2% year-on-year, with an overall gross margin of 32.3%, a decrease of 1.1 percentage points from the previous year [1][3]. - The company reported a loss attributable to shareholders of HKD 260 million for 2023 [1][3]. - The company’s total revenue for 2024 is projected to grow by over 20%, with a forecasted return to profitability, expecting net profit to exceed HKD 1 billion [3][4]. Business Segments - The property development segment generated revenue of HKD 9.59 billion in 2023, a decline of 62.6% year-on-year [1][3]. - The urban comprehensive operation business achieved a record revenue of HKD 2.79 billion, with a significant increase in managed property area to 80.47 million square meters, up 23% from 2022 [1][3]. - The property investment business is expected to continue expanding, with a total investment property area of approximately 1.73 million square meters and a fair value exceeding HKD 33 billion [1][3]. Market Position and Outlook - The company’s land reserve as of the end of 2023 was 6.742 million square meters, with a significant portion located in the Guangdong-Hong Kong-Macao Greater Bay Area [1][3]. - The company is transitioning to a new development model, with its property investment, management, and commercial operations platforms showing substantial growth potential [4][25].
2023合同销售创历史新高，基本面仍然扎实稳健