Haitong Securities·2024-05-27 11:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Views - The report emphasizes that the company is focusing on its core business development while maintaining a stable debt structure. Despite a decline in settlement scale and a drop in gross profit margin from development activities, the company is actively managing its debt issues and has received support from various parties. The report projects the company's earnings per share (EPS) for 2024 and 2025 to be 0.94 yuan [5][6][7]. Summary by Sections Financial Performance - In Q1 2024, the company achieved operating revenue of 61.59 billion yuan, a year-on-year decrease of 10.0%. The net loss attributable to the parent company was 0.36 billion yuan, a decline of 125.0% year-on-year, primarily due to reduced settlement scale and lower gross profit margins in development activities. The gross profit margin for development activities was 10.5%, down 6.7 percentage points year-on-year [5][8]. - The overall gross margin was 10.8%, a decrease of 4.6 percentage points year-on-year [5][8]. Debt Structure - As of the end of Q1 2024, the company's debt ratio, excluding advance receipts, was 64.9%, a decrease of 0.6 percentage points from the end of 2023. The net debt ratio stood at 59.3%. The company held cash and cash equivalents of 83.07 billion yuan, sufficient to cover short-term borrowings and interest-bearing liabilities due within one year [5][6]. Sales and Resources - The company reported a contract sales area of 3.911 million square meters and a contract sales amount of 57.98 billion yuan in Q1 2024, representing year-on-year declines of 37.5% and 42.8%, respectively. The settlement area was 3.182 million square meters, with a settlement amount of 46.67 billion yuan, down 26.7% and 13.8% year-on-year [5][6]. - As of the end of Q1 2024, the company had 23.225 million square meters of unsold resources with a contract value of 350.15 billion yuan [5][6]. Land Investment - The company continued to invest in land, adding three new development projects in Q1 2024, with a total planned construction area of approximately 362,000 square meters. The total construction area of ongoing projects reached 5.6757 million square meters [5][6]. Business Development - The company is advancing its multi-business strategy, with significant developments in commercial services and logistics. In Q1 2024, the rental housing business generated revenue of 0.833 billion yuan, up 7.3% year-on-year, while logistics and warehousing business revenue was 0.97 billion yuan, a 1.0% increase [6][7]. Valuation - The report assigns a reasonable valuation range of 9.38 to 11.26 yuan based on a price-to-earnings (P/E) ratio of 10-12 times for 2024, reflecting the company's leading position in the industry [6][7].