Sales increased year over year in '23, and new products accounted for a high proportion of the sales structure. According to the company's operating announcement, the company's sales amount for 23 years was 307 billion yuan, +1.7% year-on-year, equity sales amount was 215.5 billion yuan, +3.2% year-on-year, and equity 70.2%. The company's average sales price for 23 years was 23,500 per square meter, up 31% from the same period last year, up 31% from the average sales price in '21. The increase was obvious among leading companies, reflecting a relatively high share of newly acquired high-quality resources in the company's sales structure in the past two years.
The investment side is aggressive and has been expanding incrementally for 23 years. According to the company's land acquisition announcement, the company obtained 68 projects in 23, with a full-caliber land acquisition amount of 178.3 billion yuan, land acquisition area of 12.94 million square meters, equity ratio of 71%, land acquisition intensity (land acquisition amount/sales amount) of 58%, an increase of 10 pct over 22. The cumulative equity replenishment effort (equity land acquisition value/equity sales amount) for 21-23 was 106%, ranking first among 14 key enterprises, with 115% in 23, and the only leading listed company that has achieved incremental expansion in the current market environment. The company's land acquisition in the 10 key cities accounted for 73%, which is basically the same as in '22. Sales in 8 of the 10 cities entered the top ten local rankings. In '23, the company acquired 8 new self-owned commercial projects, with a self-owned area of more than 2 million square meters.
23 years of excellent commercial operation. According to the company's operating announcement, in December '23, the company's investment properties achieved rental income of 2.54 billion yuan. The monthly rent scale reached a record high of +39.8%. In January-December, the cumulative rental income of the company's investment properties was 25.63 billion yuan, +39.4% over the same period last year.
Profit forecasting and investment advice. In terms of profit forecasting, we keep the previous forecast unchanged. We expect the company's core net profit for 23-25 to be 268, 32.7, and 37 billion yuan, and net profit to mother of 324, 383, and 42.6 billion yuan, respectively, +15%, +18%, and +11% compared with the previous year. We kept the previous reasonable value of HK$42.00 per share unchanged and maintained a “buy” rating.
Risk warning. Buyers' confidence is insufficient, and the level of prosperity affects sales performance; declining housing prices are under pressure to impair value; promotional methods affect profit margins; and the proportion of luxury goods consumption falls short of expectations, and rents fall short of expectations.