Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 12.52 [7][8]. Core Views - The company has significantly increased its land acquisition efforts and is actively promoting asset securitization through multiple REIT platforms, leading to optimized financing costs [1][2]. - Sales area for the first four months of 2025 reached 2.059 million square meters with sales revenue of RMB 49.83 billion, showing a year-on-year decline of 20.06% and 15.29% respectively, but the decline in sales revenue has narrowed compared to 2024 [2]. - The company has a comprehensive portfolio of held properties, including commercial centers, rental apartments, office buildings, industrial parks, and hotels, and is enhancing operational efficiency while advancing the securitization of investment properties [3]. Summary by Sections Development Business - In the first four months of 2025, the company achieved a sales area of 2.059 million square meters and sales revenue of RMB 49.83 billion, reflecting a year-on-year decline of 20.06% and 15.29%, respectively, with the sales revenue decline narrowing by 10 percentage points compared to 2024 [2]. - The average sales price increased significantly to RMB 24,000 per square meter, a year-on-year growth of 6.0% [2]. - The land acquisition intensity has increased to over 50% in the first four months of 2025, compared to 22% in the previous year [2]. Asset Management Business - The company’s held properties include concentrated commercial, rental apartments, office buildings, industrial parks, and hotels, with ongoing efforts to enhance operational efficiency and promote asset securitization through REITs [3]. - The company has established several REITs, including the招商蛇口产业园 REIT and the蛇口租赁住房 REIT, with ongoing expansion efforts [3]. Performance - The company's gross margin for 2024 is approximately 14.6%, remaining at the bottom range, but there is potential for improvement as the land acquisition gross margin exceeds the settlement gross margin for 2024 [4]. - The company has recognized RMB 24.5 billion in impairments from 2019 to 2024, with future impairments needing to be monitored based on housing price trends [4]. - The average financing cost was reduced to 2.99% last year, with expectations for further reductions this year [4]. Earnings Forecast and Valuation - The company’s proactive land acquisition and comprehensive asset securitization platform are expected to drive asset revaluation [5]. - The earnings per share (EPS) forecasts for 2025-2027 are RMB 0.46, 0.53, and 0.62, respectively, with book value per share (BPS) forecasts of RMB 12.52, 12.85, and 13.28 [5]. - The company is expected to maintain a price-to-book (PB) ratio of 1.0 for 2025, with a target price of RMB 12.52 [5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.52 RMB [7][8]. Core Views - The company has significantly increased its land acquisition efforts and is actively promoting asset securitization through multiple REIT platforms, which has led to optimized financing costs [1][2]. - Sales volume has shown a narrowing decline, with a total sales area of 2.059 million square meters and sales revenue of 49.83 billion RMB in the first four months of 2025, reflecting a year-on-year decrease of 20.06% and 15.29% respectively, but with a notable increase in average selling price [2]. - The company is enhancing the operational efficiency of its held properties, which include commercial centers, rental apartments, office buildings, industrial parks, and hotels, while pushing for the securitization of investment properties [3]. Summary by Sections Development Business - In the first four months of 2025, the company achieved a sales area of 2.059 million square meters and sales revenue of 49.83 billion RMB, with a year-on-year decline of 20.06% and 15.29%, respectively, indicating a 10 percentage point narrowing in sales revenue decline compared to 2024 [2]. - The average selling price increased to 24,000 RMB per square meter, a year-on-year growth of 6.0% [2]. - The land acquisition intensity has significantly increased, exceeding 50% in the first four months of 2025, compared to 22% in the previous year [2]. Asset Management Business - The company has a comprehensive layout of held properties and is leveraging REITs to advance asset securitization, with established REITs for industrial parks, rental housing, and commercial properties [3]. - The company is continuously improving the management capabilities of its held properties to meet the yield requirements for REIT issuance [3]. Performance - The company's gross margin was approximately 14.6% in 2024, still at a low point, but the land acquisition gross margin in 2023 has been higher than the settlement gross margin for 2024, indicating potential for long-term improvement [4]. - The average financing cost was reduced to 2.99% last year, with expectations for further reductions this year [4]. Profit Forecast and Valuation - The company is expected to see an increase in asset revaluation driven by enhanced land acquisition efforts and a complete asset securitization platform [5]. - The earnings per share (EPS) forecasts for 2025-2027 are 0.46, 0.53, and 0.62 RMB, respectively, with a book value per share (BPS) of 12.52, 12.85, and 13.28 RMB [5]. - The company maintains a target price of 12.52 RMB, corresponding to a price-to-book (PB) ratio of 1.0 for 2025 [5].

Investment Rating - The report maintains a cautious investment outlook for the real estate industry, particularly focusing on the top five players in the sector [4]. Core Insights - The report highlights that in 2024, the company achieved a signed sales area of 9.359 million square meters, with a signed sales amount of 219.302 billion, reflecting a year-on-year decline of 25% [4][8]. - The operating cash flow increased by 1.69% year-on-year, reaching 31.964 billion, indicating a focus on cash flow management amidst industry challenges [4][8]. - The company plans to target a saleable value of approximately 325 billion for 2025, aiming to maintain its position among the industry's top five [4][8]. Sales Summary - The total sales amount decreased by 25% year-on-year, with the company maintaining its fifth position in industry scale [4][8]. - The company implemented a strict cash flow control mechanism, resulting in a 1.69% increase in operating cash flow [8]. Investment Summary - In 2024, the company acquired 26 land parcels with a total land price of approximately 48.6 billion, a decrease of 57% year-on-year [9]. - Investment in the "core 10 cities" accounted for 90% of total investment, with 59% of the investment in first-tier cities [9]. Revenue Summary - The company's revenue for 2024 was 178.9 billion, a 2.3% increase year-on-year, while net profit decreased by 54% to 4.2 billion [5][19]. - The gross profit margin declined by 1.3 percentage points to 14.6%, primarily due to the impact of the development business [19]. Debt and Financial Management Summary - The company maintained a stable debt structure, with a total interest-bearing debt of 223.4 billion, a 3% increase from 2023 [6][24]. - The cost of existing funds improved to 2.99%, reflecting a reduction of 48 basis points from the beginning of the year [6][24]. Strategic Transition Summary - The company is transitioning towards becoming a comprehensive development and operation service provider, with new projects and management areas being established [7][27]. - In 2024, the company entered 23 new heavy asset projects, adding 1.01 million square meters of operating area [7][27].

Core Viewpoint - The company achieved a signed sales area of 9.359 million square meters and a signed sales amount of 219.302 billion, with a year-on-year decrease of 25% in sales amount, while operating cash flow increased by 1.69% to 31.964 billion [2][6] - The company plans to maintain its position among the top five in the industry, with an expected sellable value of approximately 325 billion in 2025 [2][6] Sales Performance - The signed sales amount decreased by 25% year-on-year, totaling 219.302 billion, while the signed sales area decreased by 24% [6][12] - The company ranked first in sales in five cities and entered the top five in nine other cities [6] Investment Strategy - The company adopted a cautious investment approach, acquiring only 26 land parcels with a total land price of approximately 48.6 billion, a year-on-year decrease of 57% [2][7] - 90% of the investment was focused on the "core 10 cities," with 59% of the total investment in first-tier cities [2][7] Financial Performance - The company's operating revenue increased by 2.3% to 178.9 billion, while net profit decreased by 54% to 4.2 billion [3][12] - The gross profit margin decreased by 1.3 percentage points to 14.6%, primarily due to the impact of the development business [12][19] Asset Management - The company reported a decrease in inventory book value by 11% to 376.6 billion, with a corresponding inventory impairment provision of 7.4 billion [8][9] - The company has been actively managing its assets, with a focus on reducing costs and improving efficiency [14][15] Debt and Cash Flow - The company maintained a stable debt structure, with total interest-bearing liabilities increasing by 3% to 223.4 billion [15] - The cost of existing funds improved to 2.99%, with the company maintaining a green status under the "three red lines" policy [15][19] Strategic Transition - The company is transitioning towards becoming a comprehensive development and operation service provider, with new projects and management areas being added [4][16] - The company successfully issued a REIT for rental housing, raising 1.364 billion, and is actively expanding its presence in various asset management sectors [4][16]