New DaZheng Property (SZ:002968) Soochow Securities·2024-04-11 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of 15% or more over the next six months [3][15]. Core Insights - The company reported a revenue of 3.13 billion yuan for 2023, reflecting a year-on-year growth of 20.4%. However, the net profit attributable to shareholders decreased by 13.8% to 160.13 million yuan, aligning with expectations [7]. - The decline in net profit is attributed to several factors, including a 3.4 percentage point drop in gross margin to 12.8%, increased credit impairment losses, and a higher proportion of minority interests in net profit [7]. - The company demonstrated resilience in market expansion, with a total new project bid amounting to 1.88 billion yuan and a stable annual contract revenue of 970 million yuan [7]. - The company has made significant strides in diversifying its business, particularly in the medical and elderly care sectors, with notable project wins in 2023 [7]. - Share buybacks and management's stock purchases reflect confidence in the company's future, with a proposed dividend of 0.285 yuan per share, representing a payout ratio of 40.1% [7]. Financial Forecasts - The company has adjusted its net profit forecasts for 2024 and 2025 to 180 million yuan and 210 million yuan, respectively, with an expected net profit of 230 million yuan in 2026. Corresponding EPS estimates are 0.80, 0.91, and 1.01 yuan for the same years [7]. - The projected P/E ratios are 11.9X for 2024, 10.6X for 2025, and 9.5X for 2026, indicating a favorable valuation trend [7].