Core Viewpoint - Vanke and Wanda, once collaborators, are now embroiled in a financial dispute exceeding 1 billion yuan, leading to a court case scheduled for November 3 in Shanghai [1][3]. Group 1: Legal Dispute - The lawsuit involves Hainan Wanjun Management Service Co., Ltd. suing Dalian Wanda Group Co., Ltd. and Wanda Real Estate Group Co., Ltd. over a contract dispute [2]. - The conflict originates from the "Changchun International Film City" project, where Vanke and Wanda had agreed to invest 20 billion yuan [3]. - Vanke initially held a 15% stake in the project, contributing a total of 5 billion yuan, but later sought to exit the partnership and demanded an additional 1.38 billion yuan from Wanda [3]. Group 2: Financial Context - Wanda has been restructuring its assets, including selling Wanda Plaza assets and forming a new investment framework with a consortium to improve its financial standing [4]. - In March 2024, Wanda announced a significant investment agreement worth approximately 60 billion yuan with several investment firms to address its listing challenges [4]. - Vanke reported a revenue of 105.3 billion yuan in the first half of the year, with a sales income nearing 70 billion yuan, and has been actively managing its debt repayment [6]. Group 3: Management Changes - Vanke's board has undergone changes, with the resignation of its chairman and the election of a new chairman, Huang Liping, amid ongoing financial challenges [5]. - The company has received substantial financial support from its major shareholder, Shenzhen Metro Group, totaling 25.941 billion yuan to assist with debt obligations [5].

Investment Rating - The report maintains a "Recommended" rating for the company, China Merchants Shekou Industrial Zone Holdings Co., Ltd. (stock code: 001979) [1][7]. Core Insights - The company reported a revenue of 178.95 billion yuan for 2024, a year-on-year increase of 2.25%, while the net profit attributable to shareholders decreased by 36.09% to 4.04 billion yuan [4][6]. - The decline in net profit is attributed to a decrease in gross margin, impairment provisions totaling 6.03 billion yuan, and increased foreign exchange losses [4][6]. - Despite the overall industry pressure, the company maintained its sales ranking at fifth in the industry, with a sales area of 9.36 million square meters, down 23.50% year-on-year, and a sales amount of 219.30 billion yuan, down 25.31% [4][5]. - The company focused its investments on core cities, acquiring 26 new land parcels with a total planned construction area of 2.25 million square meters and a total land cost of 48.60 billion yuan [4][5]. - Financial management remains robust, with a debt-to-asset ratio of 62.37% and a net debt ratio of 55.85% as of the end of 2024, ensuring sufficient liquidity [4][5]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 178.95 billion yuan, with a gross margin of 14.61%, down 1.28 percentage points from the previous year [4][6]. - The net profit attributable to shareholders was 4.04 billion yuan, with a basic earnings per share (EPS) of 0.37 yuan, reflecting a decrease of 43.08% year-on-year [4][6]. - The company plans to distribute a cash dividend of 1.9353 yuan per ten shares [4]. Sales and Market Position - The company ranked fifth in sales within the industry, with a sales area of 9.36 million square meters and a sales amount of 219.30 billion yuan [4][5]. - The average sales price was 23,432 yuan per square meter, down 2.37% year-on-year [4]. Investment Strategy - The company acquired 26 new land parcels in 2024, with a total land cost of 48.60 billion yuan, reflecting a focus on high-quality land acquisition [4][5]. - Investment in core cities accounted for 90% of total investments, with 59% in first-tier cities, indicating a strategic focus on urban development [4][5]. Financial Management - The company maintained a cash balance of 100.35 billion yuan and a net cash flow from operating activities of 31.96 billion yuan in 2024 [4][5]. - The comprehensive financing cost was 2.99%, showing a decrease of 48 basis points from the beginning of 2024 [4][5]. Future Projections - The company forecasts a net profit of 4.87 billion yuan for 2025, with an EPS of 0.54 yuan, and anticipates a gradual recovery in profitability through 2027 [6][9].