The acceleration of carryover and the accelerated disposal of assets led to a substantial improvement in performance. In the first half of 2022, the company achieved revenue of 10.6 billion yuan, an increase of 93.7% over the same period last year, and a net profit of 1.15 billion yuan, an increase of 90.2% over the same period last year. The main reasons for the substantial increase in both the company's revenue and return net profit during the period are as follows: 1. The settlement scale of the development business increased significantly compared with the same period last year, and the settlement revenue increased by 119.4% compared with the same period last year. 2, the company invigorated its existing assets and sold the Ritz-Carlton Hotel in Beijing Financial Street, generating a total revenue of 970 million yuan. During the period, the company's profit quality declined, and the gross profit margin of the development business was 15.2%, down 8.0 percentage points from the same period last year. The gross profit margin of the asset management sector also declined slightly.

The performance of the development plate is stronger than that of the market, and the ranking of the industry has been improved. In the first half of 2022, the company realized sales of 11.67 billion yuan, down 43.3% from the same period last year, and achieved a sales area of 502000 square meters, down 53.5% from the same period last year. The performance is stronger than the big market, and the sales ranking of real estate enterprises in Kerry has increased by 10 places to 68 places compared with 2021, and the influence of the industry has been further enhanced.

The asset management sector is generally sound, and the rental rate has improved. In the first half of 2022, the company's asset management sector (property leasing + property management) achieved operating income of 940 million yuan, down 13.0% from the same period last year, and profit before interest and tax was 490 million yuan, down 16.9% from the same period last year. The contracted rental rate reached 93% by the end of June 2022, an increase of 1.5 percentage points over the same period last year.

Continue to plough the five major urban agglomerations, the financing advantage is significant. During the period, the company's land acquisition amount was 3.47 billion yuan, down 2.0% from the same period last year; the new land construction area was 245,000 square meters, down 64.9% from the same period last year; and the investment intensity increased by 13.3 percentage points to 29.7% over the same period last year. By the end of the first half of 2022, the company's land reserve was about 25.35 million square meters. Among them, the soil storage in the Beijing-Tianjin-Hebei region is 936.2 million square meters, accounting for 36.9 percent. During the period, the company successfully issued six low-interest bond financing, including 1.14 billion yuan in the first tranche and 3.17 billion yuan in the fifth issue of corporate bonds, with a cost range of 3.0% 3.5%.

Keep the profit forecast and target price 9.10 yuan unchanged. We maintain the company's profit forecast for 2022-2024 unchanged, with a three-year EPS of 0.61 EPS 0.68pm 0.77 yuan, while maintaining the buy rating.

Risk hint: the real estate market continues to decline, and the epidemic affects the development of the company's holding business.