TANDE(SH:600665) Huachuang Securities·2024-05-14 10:32Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 4 yuan, compared to the current price of 2.83 yuan [12][29]. Core Views - The company reported a revenue of approximately 11.53 billion yuan in 2023, a year-on-year increase of 9.23%, but a net profit attributable to shareholders of -390 million yuan [29]. - In Q1 2024, the company experienced a significant decline in revenue, reporting 350 million yuan, a year-on-year decrease of 89.02%, with a net profit of -81 million yuan [29]. - The company's sales performance improved in 2023, with a contract sales amount of 11.495 billion yuan, a year-on-year increase of 6.39%, primarily driven by its focus on core cities like Xi'an and Suzhou [29]. - The company aims to acquire additional land in 2024, planning to secure 510,000 square meters at an estimated cost of 5.6 billion yuan, as it currently has limited land reserves [29]. Summary by Sections Financial Performance - 2023 revenue was 11.53 billion yuan, with a net profit of -390 million yuan, and Q1 2024 revenue was 350 million yuan, with a net profit of -81 million yuan [29]. - The company’s gross margin in 2023 was 12.5%, down 12.3 percentage points from 2022, due to high premium project settlements and asset impairment provisions totaling 670 million yuan [29]. Sales and Market Position - The company achieved a contract sales area of 586,400 square meters in 2023, a decrease of 4% year-on-year, with a significant portion of sales concentrated in Xi'an and Suzhou [29]. - In Q1 2024, the contract sales amount was approximately 1.55 billion yuan, a year-on-year decrease of 40.52% [29]. Land Acquisition Strategy - The company acquired a residential land plot in Xi'an in 2023 and plans to increase its land bank in 2024, focusing on high-demand areas [29]. - As of the end of 2023, the company’s land reserves were approximately 2.53 million square meters, with 42% located in Xi'an [29]. Future Outlook - The company is expected to gradually recover its profitability as it completes the settlement of non-core city projects and focuses on its deep cultivation strategy in Xi'an [29]. - EPS forecasts for 2024, 2025, and 2026 are 0.30 yuan, 0.40 yuan, and 0.43 yuan, respectively, with a target valuation of approximately 3.5 billion yuan [29].