Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Views - The company, as a leading state-owned enterprise, maintains the largest sales scale in the industry, with a continuously optimized land reserve structure and reduced burden from existing assets. There is significant room for market share growth amid an improving competitive landscape. The company has multiple financing channels and a steady inflow of operating cash flow, laying a solid foundation for future stable operations. The company is also actively formulating valuation enhancement plans to boost market confidence [6][8]. Financial Performance Summary - In 2024, the company achieved total revenue of RMB 3116.7 billion, a year-on-year decrease of 10.2%. The net profit attributable to shareholders was RMB 50.0 billion, down 58.6% year-on-year. In Q1 2025, the company reported total revenue of RMB 542.7 billion, reflecting a year-on-year increase of 9.1%, while the net profit attributable to shareholders was RMB 19.5 billion, down 12.3% year-on-year [5][15][20]. Sales and Market Position - In 2024, the company achieved sales of RMB 3230 billion, a decrease of 23.5% year-on-year, maintaining its position as the industry leader. The sales area was 17.97 million square meters, down 24.7% year-on-year, with an average sales price of RMB 18,000 per square meter, up 1.6% year-on-year. The sales equity ratio was 78.8%, an increase of 6.4 percentage points year-on-year [8][27][31]. Land Acquisition and Development - In 2024, the company’s land acquisition amounted to RMB 683 billion, a decrease of 58.1% year-on-year, with an acquisition intensity of 21%, down 18 percentage points year-on-year. The equity acquisition amount was RMB 602 billion, with an equity acquisition ratio of 88%, the highest in nearly a decade [38][40][42]. Debt and Cash Flow Management - As of the end of 2024, the company had interest-bearing liabilities of RMB 348.8 billion, a decrease of 1.5% year-on-year. The company’s cash flow from operating activities was RMB 63 billion, although it decreased by 55.1% year-on-year due to reduced sales collections. The company has maintained positive operating cash flow for seven consecutive years [14][26][29][34].

Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [2] Core Views - The company has shown resilience in a challenging market, achieving a year-on-year increase in net profit despite a slight decline in revenue. The revenue for 2024 was RMB 69.15 billion, down 1.8% year-on-year, while the net profit was RMB 2.55 billion, up 0.7% year-on-year [5][9] - The company aims for a sales target of over RMB 100 billion in 2025, maintaining a strong market position, particularly in Hangzhou, where it has consistently ranked first in sales for seven consecutive years [6][9] - The company has a robust financial position with a healthy cash flow and a significant amount of pre-sales, ensuring future revenue stability [9][27] Summary by Sections Financial Performance - In 2024, the company reported a revenue of RMB 69.15 billion, a decrease of 1.8% from the previous year, while the net profit was RMB 2.55 billion, reflecting a growth of 0.7% [5][10] - The company plans to distribute a cash dividend of RMB 0.82 per 10 shares, representing 10% of the net profit, with a dividend yield of 0.8% [5] Sales and Market Position - The company achieved a sales amount of RMB 111.6 billion in 2024, a decrease of 27.3% year-on-year, but it ranked 9th in the industry, marking its entry into the top ten for the first time [9][29] - In Hangzhou, the company achieved sales of RMB 89.9 billion, significantly outperforming its nearest competitor [9] Land Acquisition and Development - The company has maintained a high land acquisition intensity, securing 23 new land projects in 2024, primarily in Hangzhou, with a total land acquisition amount of RMB 44.9 billion [9][31] - The average floor price for land acquired was RMB 24,000 per square meter, an increase of 38.5% year-on-year [9][37] Financial Health and Cash Flow - The company reported a cash balance of RMB 37.14 billion at the end of 2024, a year-on-year increase of 13.6% [27][28] - The net cash flow from operating activities was RMB 7.67 billion, although it decreased by 76.5% year-on-year due to lower sales [9][24] Future Outlook - The company aims to maintain a sales target of around RMB 100 billion in 2025, with a focus on increasing its market share in key regions [9][31] - The company plans to control its investment amount to around 50% of its sales revenue, indicating a strategic approach to capital allocation [9][31]