Investment Rating - The investment rating for Central China New Life is maintained as "Neutral" with a target price of HK$1.20, revised down from HK$2.30 [14][24]. Core Insights - The company reported a net loss of RMB 574 million for 2023, with total revenue declining by 9.6% year-on-year to RMB 2.8447 billion [24]. - The gross profit margin decreased by 6.5 percentage points to 26.6%, although it remains at a reasonable level within the industry [24]. - Significant impairment losses were recorded, totaling RMB 1.2224 billion for the year, reflecting ongoing risks from related developers and a weak real estate market in Henan province [24]. - The basic property management business showed robust growth, with service revenue increasing by 16.0% year-on-year to RMB 1.9922 billion, supported by a 16.0% increase in managed area [24]. Financial Summary - For 2023, the company reported total revenue of RMB 2,845 million and a net profit of RMB (574) million, resulting in an EPS of RMB (0.449) [19]. - The forecast for 2024 and 2025 EPS is adjusted to RMB 0.326 and RMB 0.360, respectively, with a new forecast for 2026 introduced at RMB 0.397 [24]. - The company’s market capitalization is approximately HK$1.3655 billion, with a free float of 25.1% [19]. Market Performance - The stock price has seen significant declines, with absolute changes of (25.2)% over the past month and (57.9)% over the past year [1]. - The average share price over the last month was HK$0.9, with a current price of HK$1.050 [14][1]. Growth Potential - The company has potential upside risks, including faster-than-expected improvements in profitability and accelerated property deliveries in Henan [24]. - The growth in property management services and the increase in managed areas present opportunities for revenue enhancement [24].
2023年下半年继续录得大额减值损失，“中性”