Incidents. In 2023, the company achieved revenue of 72.14 billion yuan, an increase of 19.35% over the previous year, and realized net profit of 1,838 billion yuan, a year-on-year decrease of 29.58%. The company plans to distribute a cash dividend of 3.70 yuan (tax included) for every 10 shares to all shareholders.
In terms of financial data: (1) As of the end of 2023, the net cash flow from the company's operating activities was RMB 50.54 billion, an increase of 31.1% over the previous year. (2) In 2023, the company achieved a weighted average return on net assets of 9.66%, a year-on-year decrease of 4.49 percentage points.
According to the company's 2023 annual report:
Sales situation: In 2023, the company achieved annual sales of 125.99 billion yuan, an increase of 4.8% over the previous year, and remained in the 100 billion camp for 4 consecutive years. In 2023, the company always insisted on keeping up with sales repayment, achieving a repayment amount of 84.689 billion yuan, an increase of 17.2% over the previous year, and maintained a steady trend of capital return; pre-collected property payments at the end of 2023 reached 10.818 billion yuan, an increase of 15.66% over the beginning of the year, and sufficient resources to be settled.
Real estate development situation: In 2023, the company started a new construction area of 2,047,500 square meters and completed an area of 5.1493 million square meters. At the end of 2023, the company had land reserves with a planned construction area of 4.3399 million square meters and an area under construction of 11.8908 million square meters.
In terms of investment development: In 2023, the company's investment and development strategy always focused on first-tier and second-tier cities. Through open auctions, strategic mergers and acquisitions, and equity cooperation, 23 high-quality projects were obtained, and the investment base was more stable.
In terms of financing: In 2023, the company will ensure that the “three red lines” continue to be green, consolidating the foundation for steady development.
In terms of capital management and control, the company's first rental housing pre-REITS project and reit-like sub-share resale were implemented one after another; equity financing was actively carried out, and the issuance of shares to specific targets was successfully completed, raising more than 5.1 billion yuan in capital, making it the second successful case in the industry to complete equity financing after the “Third Arrow” new policy was issued.
Investment advice: The reasonable value range is 6.86 yuan to 8.57 yuan, maintaining the company's “superior to the market” rating. We expect the company's EPS to be 0.74 yuan in 2024 and 8.57 yuan for BPS in 2024. Considering that the company's state-owned asset background brings a stronger margin of financial security, the company was given a dynamic PB of 0.8-1.0 times in 2024, corresponding to a reasonable value range of 6.86 yuan to 8.57 yuan, corresponding to the company's dynamic PE of 9.27-11.58 times in 2024. Maintain the company's “better than market” rating.
Risk warning. Real estate sales and price decline risk; risk of poor diversification of the company's diversified business development, etc.