Binjiang Group(002244) Guotai Junan Securities·2024-04-30 01:32Investment Rating - The investment rating for the company is "Buy" with a target price of 8.85 CNY, maintaining the previous rating of "Buy" [1][2]. Core Views - The company has shown revenue growth in 2023 but faced profit decline primarily due to increased asset impairment and decreased investment income. The performance is in line with expectations, and the company has sufficient unsold resources and land reserves to support future performance [1][2]. - The company remains a leader in the Hangzhou market, with strong sales and a solid pipeline of resources, indicating robust future earnings potential [1][2]. Financial Performance Summary - In 2023, the company achieved revenue of 70.44 billion CNY, a year-on-year increase of 69.7%, while the net profit attributable to shareholders was 2.53 billion CNY, down 32.4% year-on-year [1][2]. - The company's earnings per share (EPS) for 2023 is projected at 0.81 CNY, with estimates of 0.98 CNY for 2024 and 1.10 CNY for 2025 [1][2]. - The company’s gross profit margin slightly decreased to 16.4%, while the net profit margin was reported at 3.6% for 2023 [1][2]. Future Projections - The company is expected to generate revenues of 74.07 billion CNY in 2024 and 78.30 billion CNY in 2025, with a projected net profit of 3.06 billion CNY in 2024 and 3.41 billion CNY in 2025 [2]. - The company aims for a sales target of 100 billion CNY in 2024, with land investment expected to be less than sales receipts [1][2]. Market Position - The company continues to lead in sales within the Hangzhou region, with a significant amount of pre-sold but unrecognized revenue amounting to 143 billion CNY by the end of 2023 [1][2]. - The company’s financing costs are expected to decrease, targeting a reduction to below 4% in 2024 [1][2].