Core Viewpoint - Company maintains a "buy" rating for China Resources Land (01109) despite a double-digit decline in property sales due to ongoing challenges in the national real estate market [1] Sales Performance - In the first eight months of 2025, the company achieved a contract sales amount of 136.8 billion yuan, a year-on-year decrease of 12.0%, with a sales area of 5.12 million square meters, down 23.3% [1][2] - The average sales price increased significantly, with a signed sales price of 26,800 yuan per square meter, reflecting an 11.9% year-on-year increase [2] Asset Operations - The asset operation segment showed steady growth, contributing significantly to performance and stable cash flow, with revenue of 12.11 billion yuan in the first half of 2025, a 5.5% increase year-on-year [3] - The total area of shopping centers reached 11.85 million square meters, with a retail revenue of 110.15 billion yuan, marking a 20.2% increase [3] Financial Strength - The company maintains a strong cash reserve of 120.24 billion yuan, with a net interest-bearing debt ratio of 39.2% and an average financing cost reduced to 2.79%, the lowest in the industry [4]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company has a solid leading position in the market, with significant credit advantages due to reduced financing costs and improved debt structure [2][3]. - Despite a decline in revenue and net profit in 2024, the company showed a positive growth trend in the first quarter of 2025 [1][2]. Financial Performance Summary - In 2024, the company achieved total revenue of CNY 311.67 billion, a decrease of 10.14% year-on-year, with real estate sales at CNY 287.35 billion, down 10.90% [1]. - The net profit attributable to shareholders for 2024 was CNY 5.00 billion, a significant decline of 58.56% [1]. - For the first quarter of 2025, total revenue was CNY 54.27 billion, reflecting a year-on-year increase of 9.09%, while net profit was CNY 1.95 billion, down 12.27% [1]. Sales and Market Position - The company maintained its position as the industry leader with a signed area of 17.97 million square meters in 2024, a decrease of 24.7%, and a signed amount of CNY 323.0 billion, down 23.5% [2]. - The market share in 38 core cities reached 7.1%, an increase of 0.3 percentage points from 2023, with 14 cities achieving over 10% market share [2]. Financing and Debt Structure - By the end of 2024, the company's direct financing balance was CNY 69.9 billion, accounting for 20.03% of interest-bearing liabilities, an increase of 3.72 percentage points year-on-year [3]. - The long-term debt (maturing in over three years) amounted to CNY 138.1 billion, with a significant increase in proportion to total debt [3]. - The average cost of interest-bearing liabilities decreased to 2.92%, marking a historical low [3]. Profit Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been revised down to CNY 5.50 billion and CNY 5.87 billion, respectively, with a new forecast for 2027 at CNY 6.11 billion [4]. - The current stock price corresponds to a PE ratio of 18.2, 17.1, and 16.4 for 2025, 2026, and 2027, respectively [4].