5i5j(SZ:000560) KAIYUAN SECURITIES·2024-04-26 10:00Investment Rating - The investment rating for the company is upgraded to "Outperform" [2][7]. Core Views - The company is facing performance pressure but is focusing on its core business through various measures [7]. - The brokerage and rental business have shown resilience, while the new housing business has seen a decline in revenue [4][7]. - The company reported a significant increase in losses due to non-operational factors, but asset optimization efforts are expected to improve profitability [8]. Financial Performance Summary - In 2023, the company achieved revenue of 12.09 billion yuan, a year-on-year increase of 3.6%, but reported a net loss of 848 million yuan, a decline of 173.9% [7][9]. - For Q1 2024, revenue was 2.75 billion yuan, down 12.6% year-on-year, with a net profit of 30 million yuan, a decrease of 51.0% [7][9]. - The brokerage business generated revenue of 4.09 billion yuan in 2023, up 15.9% year-on-year, with a gross margin of 20.2% [4][9]. - The rental business (property management) had revenue of 5.76 billion yuan, a 1.9% increase year-on-year, with an adjusted gross margin of 13.3% [4][9]. - The new housing business saw revenue drop to 1.11 billion yuan, a decline of 12.6% year-on-year [4][9]. Future Earnings Forecast - The company’s net profit forecasts for 2024, 2025, and 2026 are 120 million yuan, 210 million yuan, and 330 million yuan respectively [7][9]. - The expected earnings per share (EPS) for the same years are 0.05 yuan, 0.09 yuan, and 0.14 yuan [7][9]. - The current price-to-earnings (P/E) ratios are projected to be 34.0, 19.2, and 12.4 for 2024, 2025, and 2026 respectively [7][9].