Core Viewpoint - China Jinmao is experiencing independent growth amidst a real estate market adjustment, achieving significant sales and profit increases in the first half of 2025, positioning itself among the top 10 in the industry [1][3]. Financial Performance - In the first half of 2025, China Jinmao reported a revenue of 25.1 billion, a year-on-year increase of 13.34%, and a net profit attributable to shareholders of 1.09 billion, up 7.93% year-on-year [1][3]. - The company achieved a signed sales amount of 53.4 billion, maintaining a sales growth rate of 20%, the highest among the top 10 real estate companies [1][3]. Market Positioning - Despite a 5.5% year-on-year decline in new residential sales in the overall market, China Jinmao's sales grew by 20%, allowing it to rank first in growth among the top 10 companies [3][9]. - The overall gross profit margin reached 16.2%, an increase of 1.6 percentage points compared to 2024, indicating a trend of improving profitability [3][4]. Strategic Focus - Since 2022, China Jinmao has focused its investments on core urban areas, particularly first and second-tier cities, which are more resilient during market adjustments [6][7]. - In the first half of 2025, the company acquired 16 projects located in key cities such as Beijing, Shanghai, and Chengdu, with a significant profit margin advantage [6][7]. Operational Efficiency - The company has implemented strict cost control measures, resulting in a 15.9% reduction in management expenses in 2024 and an additional 5% decrease in 2025 [3][4]. - Sales and financial expenses also saw a decline of 15% in the first half of 2025, contributing to improved net profit margins [3][4]. Competitive Advantage - China Jinmao's brand strength and high-end product offerings, such as the Jinmao Mansion series, have solidified its market position, with new projects achieving an average sales rate of 81% [7][8]. - The company’s total land reserves reached 27 million square meters by mid-2025, with 88% located in first and second-tier cities, ensuring sufficient support for future development [9][10]. Future Outlook - Management anticipates a transition from merely surviving to thriving, with expectations of steady performance improvement from 2025 to 2027 [10].

Investment Rating - The report initiates coverage with a "Buy" rating for China Jinmao [3][8] Core Views - China Jinmao is undergoing significant changes, including new management, cost reduction, and operational efficiency improvements. The company is backed by its major shareholder, Sinochem Group, which has increased its financial support significantly [7][8] - The company has outperformed the industry in land acquisition and sales, ranking 4th in land acquisition and 9th in sales as of July 2025, with a projected sales target of 110 billion yuan for 2025, reflecting a year-on-year growth of 11.9% [7][8] - The company has adequately provisioned for impairments, gradually alleviating historical burdens, and has introduced a new product line, "Jin Yu Man Tang," which has been well-received in the market [7][8] Financial Data and Profit Forecast - Revenue projections for China Jinmao are as follows: - 2023: 72.404 billion yuan - 2024: 59.053 billion yuan - 2025E: 49.620 billion yuan - 2026E: 44.037 billion yuan - 2027E: 39.390 billion yuan - The company is expected to achieve net profits of 0.701 billion yuan in 2024, 0.738 billion yuan in 2025, 0.792 billion yuan in 2026, and 0.869 billion yuan in 2027, with respective growth rates of 110.2%, 5.2%, 7.3%, and 9.7% [6][8] Key Changes - **Change 1**: New management has been appointed, focusing on cost reduction and operational benchmarks. The new CEO, Tao Tianhai, has a history of rapid expansion in the East China region, which now contributes 40% of the company's sales [7][18] - **Change 2**: Sinochem Group, the major shareholder, has increased its financial support to the company by 25.6 billion yuan, highlighting the company's importance within the group [7][20][22] - **Change 3**: The company has significantly outperformed the industry in land acquisition and sales, with a sales amount of 61.8 billion yuan in the first seven months of 2025, a year-on-year increase of 23.1% [7][27] - **Change 4**: The company has made substantial impairment provisions since 2020, totaling 17.5 billion yuan, which is higher than the industry average [7][49] - **Change 5**: The introduction of the "Jin Yu Man Tang" product line has set new benchmarks for quality housing, with several projects achieving rapid sales [7][50] Valuation and Target Price - The report estimates a target market value of 31.3 billion HKD for China Jinmao, based on a price-to-book ratio of 0.75x, reflecting the company's anticipated growth in sales and profitability [7][8]

Group 1 - The core viewpoint of the articles highlights the financial performance and strategic initiatives of Quanjude, including a revenue of 332 million yuan and a net profit of 4.21 million yuan for Q1 2025 [1] - Quanjude is actively exploring the transformation of its time-honored brand towards a younger demographic, implementing a strategy that combines traditional branding with new technology [1] - The company has engaged in deep cooperation with Meituan since Q4 2024, focusing on product structure, store models, and digital operations, leading to the creation of new "brand satellite stores" [1] Group 2 - Quanjude has announced the opening of its first direct-operated store in Haikou, Hainan, set to open in May 2025, with an area of over 756 square meters to cater to various dining scenarios [1] - The company showcased its "Zero Research Institute" brand at the 112th Chengdu Spring Sugar and Alcohol Fair, featuring a range of healthy snack products, including duck-based items [2] - Quanjude aims to enhance customer experience through a dual-track model of "themed stores + retail," focusing on both core customer retention and reaching a broader audience with snack and customized products [2]