排名持续提升，经营优于行业。根据克而瑞数据，24Q1 华发实现销售金额204 亿元（同比-59%），销售面积69 万方（同比-58%），销售均价29737 元/平，销售金额排名较23 年提升3 位至第11 位。期内获取2 宗地，位于上海、广州，总地价57 亿元，金额口径拿地力度较主流房企领先17pct，拿地毛利率25%，有助优化土储结构提高周转速度。Core views:
Revenue fell short of expectations due to a decline in project consolidation ratios. According to the company's quarterly report and operating announcement, Huafa 24Q1 achieved revenue of 7.0 billion yuan, operating profit of 590 million yuan, 46.9% year-on-year, net profit of 350 million yuan, or -35.3% year-on-year net profit after deducting non-return to mother of 340 million yuan, or -39.4% year-on-year. The company completed 1.29 million square meters of full-caliber construction during the period, +94% over the same period, showing a large deviation from revenue performance. Settlement and revenue fell short of expectations due to a decrease in the company's consolidated share ratio.
Gross margin was under pressure, net interest rates rebounded, and minority shareholders' share of profit and loss fell sharply. The company's overall gross margin remained low during the period, at only 15.1%, down 3.0 pct from 23, and low-profit projects obtained before 2022 were carried over centrally. The three-fee rate for the company's sales amount remained stable during the period. Net income from investment increased by 140 million yuan year on year, and income tax payments decreased by 52% year on year, bringing the net interest rate for the period to 6.2%, an increase of 1.4 pct over 2008. Minority shareholders' share of profit and loss fell sharply to 19.2% (47.0% in '23), making net profit to mother fall lower than net profit.
The ranking continues to rise, and the operation is superior to the industry. According to Kerui data, in 24Q1, Huafa achieved sales volume of 20.4 billion yuan (-59% year over year), sales area of 690,000 square meters (-58% year over year), and an average sales price of 29,737 yuan/square meter. The sales amount ranking increased 3 places over 23 years to 11th place. Two parcels were acquired during the period, located in Shanghai and Guangzhou, with a total land price of 5.7 billion yuan. The amount of land acquisition efforts were 17 pct ahead of mainstream housing enterprises, and the gross profit margin on land acquisition was 25%, which helped optimize the land storage structure and increase turnover speed.
There is the ability to expand tables, and costs are continuously optimized. As of the end of the first quarter of '24, the company's total interest-bearing debt was 151 billion yuan, an increase of 5% over the end of the previous year. The company issued 2 domestic bonds during the period, totaling 1.6 billion yuan. The capital costs were 40 bps and 75 bps lower than the comparable bonds issued last year, respectively.
Profit forecasting and investment advice. The operating performance of Huafa Co., Ltd. is superior to the industry as a whole. After the sales project was carried over in the past two years, there is room for revenue growth and profit margin improvement. The company's net profit for 24-25 is expected to be 23.5 billion yuan or 2.80 billion yuan, +28% compared to the same period. We used net profit returned to mother for 24 to correspond to 11xPE, giving a reasonable value of 9.39 yuan/share, and maintain a “buy” rating.
Risk warning. The recovery in prosperity fell short of expectations; gross profit was under pressure from promotions; financing continued to narrow, etc.
