Incidents. The company published its 2023 annual report. During the reporting period, the company achieved operating income of 17.210 billion yuan, an increase of 33.42% over the previous year; net profit to mother was 1,631 billion yuan, a year-on-year decrease of 12.19%.
According to the company's 2023 annual report, it achieved a contract sales area of 282,100 square meters throughout the year; contract sales revenue of 2,925 million yuan. The contract debt at the end of the period is about 16.6 billion yuan, and the income guarantee is high. During the period, 106,600 square meters of land reserves were added, and 243,600 square meters of construction area was added. The new construction area was 204,400 square meters; the newly completed area was 917,600 square meters; the settlement area was 684,300 square meters, down 37.98% year on year, and settlement revenue was 18.385 billion yuan, up 33.29% year on year; the average settlement price was 26,869 yuan/square meter, and the settlement gross profit margin was 40.01%, an increase of 6.87 percentage points over the previous year.
At the end of the period, the book balance ratio was 60.60%, down 5.69 percentage points from the previous year; the balance ratio after deducting advance payments was 53.64%, and the debt ratio continued to be moderately low in the industry. The net debt ratio is 60.06%, up about 1.23 percentage points from the beginning of the period, and is low in the industry.
In February 2023, Xinhu Group transferred 860 million shares of the company to Xinan Caitong funded by Quzhou. After the transfer was completed, Xinan Caitong held 10.11% of the company's shares. In January 2024, Xinhu Group and its co-actor Hengxingli once again transferred 1,568 billion shares of the company to Quzhou. Up to now, the transfer has completed the transfer registration of a total of 13.28% of the shares in the first two batches. After three years of in-depth cooperation between Quzhou State-owned Assets and the Company, especially after the introduction of Quzhou state-owned shareholders (after the settlement is completed, Quzhou Industrial, which has a state-owned background, will become the company's largest shareholder), the mixed ownership structure combining the advantages of Quzhou Industrial's state-owned system with the company's existing institutional advantages is conducive to promoting the smooth implementation of the company's long-term development and transformation.
In terms of technology investment: In recent years, the company's investment projects have gradually entered a payback period. 2023 is a year of large-scale investment recovery for the company, with a total return of nearly 5 billion yuan of capital through dividends and monetization.
2024 plan: The company plans to have a construction area of 565,300 square meters, an increase of 177.07% over 2023. The main Yalong project will start construction during the year; the planned completion area is 830,500 square meters, a decrease of 9.48% compared to 2023.
Investment advice: The reasonable value range is 2.59-3.10 yuan, raised to a “superior to the market” rating. We expect the company's 2024 EPS and BPS to be $0.22 and $5.17 respectively. Considering that the company's total investment in high-tech enterprises has now exceeded 10 billion yuan, and many of the investee companies have internationally leading domestic autonomous controllable technology and digital technology, we believe that the expansion of the scale of investment in science and innovation makes the company more suitable for valuation using PB. Therefore, we gave the company 0.5-0.6 times dynamic PB in 2024, with a corresponding reasonable value range of 2.59-3.10 yuan. The corresponding dynamic PE range for 2024 was 11.77-14.09 times, raised to” “Better than the market” rating. Risk warning:
The company's sales business faces the risk of policy regulation, as well as the risk of equity investment.
Risk warning. The company's sales business faces the risk of policy regulation, as well as the risk of equity investment.