YUEXIU PROPERTY(HK:00123) Haitong Securities·2024-04-08 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][20]. Core Views - The company's operating performance remains stable, with a revenue of RMB 80.22 billion in 2023, representing a year-on-year increase of 10.8%. However, the net profit attributable to the parent company decreased by 19.4% to RMB 3.185 billion [6][9]. - The company achieved a contract sales amount of RMB 142.03 billion in 2023, a year-on-year increase of 13.6%, successfully completing 107.6% of its annual sales target, solidifying its leading position in the Greater Bay Area [6][10]. - The diversified land acquisition model has optimized the land reserve structure, with a total land reserve of approximately 25.67 million square meters, 95% of which is located in first- and second-tier cities [11][13]. - The "commercial and residential" strategy has been further advanced, with rental income from directly held commercial properties reaching RMB 490 million, a year-on-year increase of 49.7% [19][20]. - The company has strengthened its financial safety net, with cash and cash equivalents totaling approximately RMB 46.1 billion, an increase of 31.3% from the beginning of the year [7][19]. Summary by Sections Financial Performance - In 2023, the company reported total revenue of RMB 80.22 billion, up 10.8% year-on-year, while net profit attributable to the parent company was RMB 3.185 billion, down 19.4% [6][9][10]. - The gross margin and net profit margin were 15.28% and 3.97%, respectively, down 5.17 percentage points and 1.49 percentage points year-on-year [6][9]. Sales and Market Position - The company recorded contract sales of RMB 142.03 billion in 2023, achieving 107.6% of its annual target and maintaining its leading market share in Guangzhou at 17.2% [6][10][19]. - The sales performance in different regions showed a 20% increase in the Greater Bay Area, while sales in East China decreased by 13% [10][19]. Land Acquisition and Development Strategy - The company utilized a "6+1" diversified land acquisition model, adding 28 plots of land across 11 first- and second-tier cities, totaling approximately 4.91 million square meters [11][13]. - The total land reserve as of the end of 2023 was approximately 25.67 million square meters, with 12.9% allocated to Transit-Oriented Development (TOD) projects [11][13]. Commercial Operations - The rental income from commercial properties increased by 49.7% to RMB 490 million, while the revenue from the Yuexiu Property Fund rose by 11.4% to RMB 2.09 billion [19][20]. - The company’s service segment, holding 66.92% of Yuexiu Services, achieved revenue of RMB 3.22 billion, a year-on-year increase of 29.7% [19][20]. Financial Health - As of December 31, 2023, the company had cash and cash equivalents of approximately RMB 46.1 billion, with a debt-to-asset ratio of 67.4% and a net debt ratio of 57.0% [7][19]. - The average borrowing cost decreased by 34 basis points to 3.82% for the year [7][19].