Orient Securities·2024-04-08 16:00Investment Rating - The report maintains a "Buy" rating for the company and adjusts the target price to 8.37 yuan [2][3]. Core Views - The company reported a revenue of 465.74 billion yuan for 2023, a year-on-year decrease of 7.6%, and a net profit attributable to shareholders of 12.16 billion yuan, down 46.4% year-on-year. The decline in revenue and profit is attributed to a decrease in the settlement scale of development business and a drop in gross profit margin [1][5]. - Despite the challenging market conditions, the company demonstrated resilience with a cumulative sales amount of 376.1 billion yuan, ranking second in the industry, and a land acquisition amount of 84.91 billion yuan [1][5]. - The company has a healthy financial position with significant operating assets that provide ample financing space, and a short-term debt credit risk is low [1][5]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 465.74 billion yuan, down 7.6% from 2022, and a net profit of 12.16 billion yuan, down 46.4% year-on-year. The gross profit margin decreased to 15.2% [1][4][7]. - The company’s operating profit was 29.25 billion yuan, reflecting a 43.8% decline compared to the previous year [4][7]. Future Projections - The forecast for net profit attributable to shareholders for 2024-2026 is adjusted to 11.08 billion, 9.25 billion, and 8.31 billion yuan respectively [2][4]. - Revenue projections for 2024, 2025, and 2026 are 417.96 billion, 369.40 billion, and 356.39 billion yuan, indicating a continued decline [4][7]. Business Operations - The company’s diversified business segments, including property management and logistics, showed stable growth with respective revenue increases of 10.2%, 17.2%, 6.8%, and 4.6% [1][5]. - The issuance of REITs is expected to enhance the value of operating assets and improve the financial structure [1][5].