Gross profit margin increased dramatically, turning a loss into a profit. In 2023, the company achieved revenue of 20.363 billion yuan, a year-on-year decrease of 17.09%. In 2023, the company achieved net profit of 559 million yuan, earnings per share after deducting the impact of dividends of 235 million yuan from other equity instruments, and a weighted average return on net assets of 1.60% after deducting the impact. The company's net investment income in 2023 was 487 million yuan, compared to -640 million yuan in the same period in 2022; the company's fair value change income in 2023 was -192 million yuan, and -742 million yuan in the same period in 2022. We believe that as the probability of the company being negatively affected by non-main business decreases, the future will be more related to the development of the main business.
Housing sales have reached a new high, and product development has increased three-dimensionally.
The company achieved sales area of 875,800 square meters, compared to 511,400 square meters in the same period in 2022; sales of 42,465 billion yuan, compared to 30.614 billion yuan in the same period in 2022. In 2023, the company added 822,000 square meters of total land reserve construction area (567,900 square meters of equity area), compared with 1.026,600 square meters (equity area of 829,600 square meters) in the same period in 2022.
The company focuses on market frontiers, continues to step up product research efforts, and comprehensively promotes design management and product system standardization. The product review expert meeting mechanism was strictly implemented, and the Guoyufu IP was perfectly unveiled; the Xiangshan Yue and Wangjing Guoyufu product launches received widespread attention from the industry; and many popular models led the market.
The company's brand and product quality have won high recognition from customers and peers.
Multiple businesses have been carried out collaboratively, and various tasks have achieved remarkable results. The efficient promotion of shed reform and first-level development has won high praise from the government and owners; the company uses the “smart risk control” platform as a starting point to strictly implement the “Open Day for Owners” system. More than 14,000 units are checked in throughout the year, with an occupancy area of about 1.3 million square meters, establishing a good image as a responsible state-owned enterprise; commercial real estate bucked the trend, and the company's first self-operated project, Chengyuehui, achieved a grand opening, becoming a new commercial landmark in the Beiyuan region; Chengao Building won the National Quality Engineering Award in the country from 2022 to 2023, and the comprehensive leasing level ranked among the highest in the region; Steady progress, Huangshan The project commenced construction of the ropeway and favorable regional functional positioning, leveraged the joint advantages of Huangshan Company and Shoulian Company to speed up the overall construction progress of the project, successfully opened the first batch of residences, and signed a hotel entrustment management agreement.
Investment advice: Targets related to China and Turkey's valuation have a “superior to the market” rating. We forecast the company's EPS of 0.29 yuan and 0.32 yuan in 2024 and 2025 respectively, and the company's net assets per share in 2024 and 2025 will be 11.24 yuan and 11.58 yuan, respectively. Referring to comparable company valuations, we gave the company a PB valuation of 0.5-0.6 times in 2024, with a corresponding reasonable value range of 5.62-6.74 yuan per share. Give the company an “better than market” rating.
Risk warning: The carry-over of company-level land development and shed improvement projects falls short of expectations.