Songcheng Performance(SZ:300144)2024-05-11 01:30Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 12.00 per share, based on a 25x PE for 2024 [4][12]. Core Insights - The company reported a revenue of RMB 1.93 billion in 2023, representing a year-on-year growth of 320.8%, recovering to 73.8% of the same period in 2019. However, the net loss attributable to shareholders was RMB 110 million, a decline of 130.2% year-on-year [3][10]. - For Q1 2024, the company achieved a revenue of RMB 560 million, up 138.7% year-on-year, with a net profit attributable to shareholders of RMB 250 million, reflecting a growth of 317.3% year-on-year [3][10]. Financial Performance Summary - In 2023, the company experienced a significant increase in operating cash flow, reaching RMB 1.42 billion, up 327.4% year-on-year. The diluted EPS for 2023 was -RMB 0.04 [3][10]. - The period expense ratio decreased by 76.6 percentage points in 2023, indicating improved operational efficiency. The sales expense ratio decreased to 4.6%, while the general and administrative expense ratio dropped to 7.6% [3][11]. - The company plans to continue developing new projects, with the Guangdong 'Eternal Love' project opening in February 2024 and the Three Gorges 'Eternal Love' project expected to open in summer 2024 [12]