Binjiang Group(SZ:002244) Huachuang Securities·2024-05-12 00:32Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 10 yuan [2]. Core Views - The company achieved a revenue of 70.443 billion yuan in 2023, a year-on-year increase of 69.73%, while the net profit attributable to shareholders decreased by 32.41% to 2.529 billion yuan. In Q1 2024, revenue reached 13.7 billion yuan, up 35.85% year-on-year, with net profit of 660 million yuan, an increase of 17.84% [2]. - The decline in profit is attributed to a significant impairment provision of approximately 3.8 billion yuan, a 438% increase year-on-year. The gross margin for 2023 was about 16.8%, down 0.7 percentage points from 2022, but the decline has narrowed. The company expects gradual recovery in gross margin due to strong cost control and operational efficiency in Hangzhou [2][3]. - The company ranked 9th nationally in new land value in 2023, with a focus on core locations, and the average land price increased by 17% year-on-year. As of the end of 2023, 60% of the land reserves are in Hangzhou, which supports brand strength and operational efficiency [2][3]. - Financially, the company is stable with a short-term debt of 13.507 billion yuan, which is well covered by cash reserves of 32.704 billion yuan, resulting in a cash-to-short-term debt ratio of 2.42 times. The average financing cost has decreased from 5.2% in 2020 to 4.2% in 2023 [2][3]. Summary by Sections Financial Performance - 2023 total revenue was 70.443 billion yuan, with a year-on-year growth of 69.73% [3]. - Net profit attributable to shareholders was 2.529 billion yuan, down 32.41% year-on-year [3]. - Q1 2024 revenue was 13.7 billion yuan, up 35.85% year-on-year, with net profit of 660 million yuan, an increase of 17.84% [2]. Sales and Market Position - The company’s sales amount in 2023 was 153.5 billion yuan, a slight decline of 0.3% year-on-year, with a 25% increase in sales in Hangzhou [2]. - The company maintained a strong market position in Hangzhou, with 87% of its sales coming from this city [2]. Land Acquisition and Strategy - In 2023, the company ranked 9th in new land value with 105.75 billion yuan, focusing on core locations [2]. - The average land price increased by 17% year-on-year, indicating a strategic focus on high-value areas [2]. Financial Stability - The company has a short-term debt of 13.507 billion yuan, with cash reserves of 32.704 billion yuan, resulting in a strong liquidity position [2]. - The average financing cost has decreased over the years, indicating improved financial management [2].