Guotai Junan Securities·2024-05-27 12:02Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The company’s non-development business is showing stable improvement, while the development business still requires recovery. It is expected to improve under supportive policies [2][3]. - The company’s sales in April were 8.9 billion RMB, with a sales area of 590,000 square meters, reflecting a year-on-year decline of 45.9% and 38.4%, respectively. However, the decline has narrowed compared to the previous month [3]. - The average selling price in April slightly increased by 2.7% to 15,000 RMB per square meter, but the cumulative average selling price from January to April was 14,499 RMB per square meter, lower than the average of 16,070 RMB for the entire year of 2023 [3]. - The company has significantly increased its land investment intensity to 71%, focusing on core first and second-tier cities, with new land worth approximately 12 billion RMB added in April [3]. Financial Summary - The company’s operating revenue for 2024 is projected to be 178.5 billion RMB, with a slight decrease of 1.2% compared to 2023. The net profit for 2024 is expected to be 13.035 billion RMB, reflecting a 1.4% increase [1][3]. - The earnings per share (EPS) for 2024 to 2026 are maintained at 1.93 RMB, 1.97 RMB, and 2.07 RMB, respectively [3].