Core Viewpoint - The company reported a decline in contract sales for the first eight months of 2025, but showed improvements in sales price and asset operations, indicating a focus on core cities and stable cash flow generation [1][4]. Sales Performance - In August 2025, the company achieved a contract sales amount of 13.2 billion yuan, a year-on-year decrease of 13.2%, with a sales area of 539,000 square meters, down 26.7% [1]. - For the period from January to August 2025, the company recorded a contract sales amount of 136.8 billion yuan, a year-on-year decline of 12.0%, and a sales area of 5.12 million square meters, down 23.3% [1]. - The average sales price increased significantly, with a signed sales price of 26,800 yuan per square meter in the first half of 2025, reflecting an 11.9% year-on-year increase [2]. Asset Operations - The asset operation segment showed steady growth, contributing significantly to performance and long-term cash flow stability, with revenue of 12.11 billion yuan in the first half of 2025, up 5.5% year-on-year [3]. - As of June 30, 2025, the total area of shopping centers was 11.85 million square meters, with 94 operational centers and retail sales of 110.15 billion yuan, a 20.2% increase [3]. - The total area of office buildings reached 1.46 million square meters, with an average occupancy rate of 74.5%, maintaining industry leadership [3]. Financial Health - The company maintained a cash reserve of 120.24 billion yuan and a net interest-bearing debt ratio of 39.2%, with a weighted average financing cost reduced by 32 basis points to 2.79%, the lowest in the industry [3]. Profit Forecast and Valuation - Due to the ongoing downturn in the national real estate market, the company adjusted its net profit forecasts for 2025-2027 to 24.74 billion, 25.27 billion, and 25.53 billion yuan, respectively [4]. - The current stock price corresponds to a PE valuation of 8.5, 8.3, and 8.3 times for 2025-2027 [4]. - The company maintains a "buy" rating, supported by its strong brand reputation, focus on core cities, and stable cash flow from asset operations [4].

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company has shown a significant increase in average sales price while maintaining stable asset operations. The sales structure is focused on core cities, leading to a notable rise in sales price per square meter [2][3]. - The company achieved a contract sales amount of 136.8 billion yuan from January to August 2025, reflecting a year-on-year decline of 12.0%, with a sales area of 5.12 million square meters, down 23.3% year-on-year [1][4]. - The asset operation segment has demonstrated robust growth, contributing significantly to performance and stable cash flow. The revenue from the asset operation segment reached 12.11 billion yuan in the first half of 2025, a year-on-year increase of 5.5% [3]. Summary by Sections Sales Performance - For the first half of 2025, the company recorded a contracted sales amount of 110.3 billion yuan, a decrease of 11.5% year-on-year, with a sales area of 4.12 million square meters, down 20.9% year-on-year. The average sales price was 26,800 yuan per square meter, up 11.9% year-on-year [2][4]. Land Acquisition - The company adhered to a "quantity in, quantity out" principle in land acquisition, focusing on first and second-tier cities. In the first half of 2025, the company invested 32.28 billion yuan in land, adding 1.48 million square meters to its land reserves, which now total 48.95 million square meters [2][3]. Asset Operations - As of June 30, 2025, the total building area of shopping centers was 11.85 million square meters, with 94 centers in operation. The retail sales reached 110.15 billion yuan, a year-on-year increase of 20.2%, with an operating profit margin of 65.9%, setting a new historical high [3]. Financial Health - The company maintained a cash reserve of 120.24 billion yuan as of June 2025, with a net interest-bearing debt ratio of 39.2%. The weighted average financing cost decreased by 32 basis points from the end of 2024 to 2.79%, maintaining the lowest level in the industry [3]. Profit Forecast and Valuation - The company's net profit forecasts for 2025-2027 have been revised down to 24.74 billion yuan, 25.27 billion yuan, and 25.53 billion yuan, respectively. The current stock price corresponds to a PE ratio of 8.5, 8.3, and 8.3 times for 2025-2027 [4][10].