Core Viewpoint - The report maintains a "buy" rating, suggesting potential recovery in asset prices due to ongoing policy support and a gradual bottoming out of asset prices [1] Investment Highlights - The company maintains EPS forecasts for 2025-2027 at -0.23, -0.08, and 0.01 yuan respectively, indicating a cautious outlook on future profitability [2] - The estimated net asset value per share for 2025 is projected at 12.84 yuan, with a target price set at 5.78 yuan based on a 0.45 times PB valuation, reflecting a conservative approach due to ongoing industry stabilization [2] - For Q1 2025, the company reported revenue of 5.966 billion yuan, a year-on-year decrease of 14.32%, and a net profit of -658 million yuan, down 138.34% year-on-year, primarily due to reduced revenue from real estate transfers and declining gross margins [2] - The gross margin for Q1 2025 was 12.51%, a decline of 2.41 percentage points compared to the same period in 2024 [2] - Total assets as of the end of Q1 2025 were 288.812 billion yuan, a decrease of 1.7% from the end of 2024, with a debt-to-asset ratio of 64.82%, up 0.03 percentage points [2] Sales and Operations - In Q1 2025, the company achieved a signed area of 540,000 square meters, down 45.18% year-on-year, and a signed amount of 8.15 billion yuan, down 51.31% year-on-year [3] - New construction area completed in Q1 2025 was approximately 281,000 square meters, while the completed area was about 559,000 square meters [3] - Rental income for Q1 2025 was 752.81 million yuan, with office and commercial rental rates at 78% and 79% respectively, showing an improvement compared to the same period in 2024 [3] Debt Management - The company has successfully navigated the peak period for public debt repayment, with outstanding domestic public debt of 5.9 million yuan and 50.1 million yuan for 2025 and 2026 respectively [3] - Overall debt levels have improved, with interest-bearing debt decreasing by 20% year-on-year to 73.5 billion yuan, and the comprehensive financing cost reduced to 4.05% [3] - The pre-debt ratio and net debt ratio have been optimized to 59.7% and 49.1% respectively [3]