Investment Rating - The report assigns an "Outperform" rating for the company, with a target price range of 1.18 to 1.24 HKD, indicating a potential upside of 20% to 26% from the current price of 1.06 HKD [5][3][19]. Core Insights - The company has successfully turned around its performance, achieving profitability in 2024 due to reduced inventory impairment provisions, improved gross margins in development, decreased operating expenses, and increased contributions from joint ventures [1][19][3]. - The company maintains a diversified business structure, focusing on urban and property development, commercial leasing, hotel operations, and property services, with urban and property development accounting for over 80% of its revenue [1][15][19]. - The company has a strong sales performance, ranking 12th in the industry with sales of 98.3 billion RMB in 2024, and has a healthy land bank with 87% of unsold value located in first- and second-tier cities [2][62][83]. Summary by Sections Company Overview - The company is a platform enterprise in urban operations under China National Chemical Corporation, with a stable shareholding structure and diversified business segments [1][11][12]. Financial Performance - In 2024, the company reported revenue of 59.1 billion RMB, a decrease of 19% year-on-year, but achieved a net profit of 1.1 billion RMB, marking a turnaround from losses [4][19][17]. - The company has cumulatively recognized 17.4 billion RMB in impairments since 2020, with a significant reduction in impairment provisions in 2024 [3][21]. Business Segments - **Urban and Property Development**: The company launched a new product line, contributing 49.2 billion RMB in revenue, with a gross margin of 11% [31][19]. - **Commercial Leasing and Retail Operations**: This segment generated 1.6 billion RMB in revenue, with a high occupancy rate and stable rental income [46][47]. - **Hotel Operations**: The hotel segment faced challenges, generating 1.7 billion RMB in revenue, with a gross margin of 36% [54][56]. - **Property Services**: The property services segment, which was spun off in 2022, contributed 3 billion RMB in revenue, reflecting a 10% increase [58][60]. Sales and Land Bank - The company achieved sales of 98.3 billion RMB in 2024, with a sales area of 5.82 million square meters and an average selling price of 16,887 RMB per square meter [62][68]. - The company has a robust land bank, with unsold value of approximately 280 billion RMB, primarily located in economically developed regions [83][84]. Debt Management - The company has optimized its debt structure, with a reasonable debt maturity profile and a reduction in the proportion of short-term debt to 18% [89][90].

Investment Rating - The report assigns an "Outperform" rating for the company, with a target price range of 1.18 to 1.24 HKD, indicating a potential upside of 20% to 26% from the current price of 1.06 HKD [5][3]. Core Insights - The company has successfully turned around its performance, achieving profitability in 2024 due to reduced inventory impairment provisions, improved gross margins in development, decreased operating expenses, and increased contributions from joint ventures [1][19]. - The company maintains a diversified business structure, focusing on urban and property development, commercial leasing, hotel operations, and property services, with urban and property development accounting for over 89% of its revenue [15][19]. - The company has a strong sales performance, ranking 12th in the industry with sales of 98.3 billion RMB in 2024, and has a robust land bank with 87% of unsold value located in first- and second-tier cities [2][62]. Summary by Sections Company Overview - The company is a platform enterprise in urban operations under China National Chemical Corporation, with a stable shareholding structure and diversified business segments [11][12]. Financial Performance - In 2024, the company reported revenue of 59.1 billion RMB, a decrease of 19% year-on-year, but achieved a net profit of 1.1 billion RMB, marking a return to profitability [17][19]. - The company has cumulatively recognized 17.4 billion RMB in impairments since 2020, with a significant reduction in impairment provisions in 2024 [21][19]. Business Segments - **Urban and Property Development**: The company launched the "Jin Yu Man Tang" product line, contributing 492 billion RMB in revenue, despite a 22% decline [31][19]. - **Commercial Leasing and Retail Operations**: The commercial leasing segment generated 1.6 billion RMB in revenue, with a high occupancy rate and stable rental income [46][47]. - **Hotel Operations**: The hotel segment faced challenges, generating 1.7 billion RMB in revenue, down 18% year-on-year, with a gross margin of 36% [54][56]. - **Property Services**: The property services segment, which was spun off in 2022, contributed 3 billion RMB in revenue, reflecting a 10% increase [58][60]. Sales and Land Bank - The company achieved sales of 98.3 billion RMB in 2024, with a sales area of 5.82 million square meters and an average selling price of 16,887 RMB per square meter [62][68]. - The company has a substantial land bank, with unsold value of approximately 280 billion RMB, primarily located in economically developed regions [83][87]. Debt Management - The company has optimized its debt structure, with a total debt of 122.8 billion RMB and a manageable proportion of short-term debt [89][95]. - The company maintains a healthy financial position, with all three red lines in green, ensuring access to diverse financing channels [89][95].