The Zhitong Finance App learned that Haitong Securities released a research report stating that it maintains the “superior to the market” rating of Midea Real Estate (03990). Considering the significant advantages on the financing side, the land storage structure has been gradually adjusted to high-energy core cities. The EPS for 23 years is RMB 1.31, with a reasonable value range of HK$8.55-9.98. As of the end of June 2023, the company's gross margin and net profit margin were 13.2% and 2.2% respectively. The bank believes that the main reason for the decline in gross margin was due to the high cost of confirming projects and the increase in impairment provisions for property development projects with signs of impairment. Furthermore, through intensive management, the company's group management and sales expense ratio were steadily controlled in the first half of '23.

According to the report, in terms of property, the contract area of the American Real Estate Service up to the end of June 23 was 91.14 million square meters. A total of 21 low-quality projects were removed (of which 3 were voluntarily removed in the first half of '23), totaling 3.23 million square meters, insisting on steady acquisition of high-quality projects and achieving quality management. On the commercial side, in the first half of '23, Meizhi Commercial had an operating area of over 70+ million square meters, with 9 shopping malls in operation, a full occupancy rate of 92%, and cumulative sales of 1.4 billion yuan, +27% over the same period. In terms of the Ruizu series, Ruishu Construction Technology added 400 million yuan in the contract amount in the first half of '23, and the share of third-party business reached 100%. Furthermore, Ruishu Construction Technology's MIC modular construction products have been certified by the Hong Kong Technical Standards System. Through the Hong Kong Supply Alliance and channel cooperation, it will target orders for modular construction products of no less than 500 million Hong Kong dollars per year for the next 3 years.