营收稳步增长，毛利率等多因素导致业绩下滑：公司营收增长主要由开发业务（占总收入的94.7%）的增长带动，1H24 开发业务收入310.1 亿元，同比+36.4%。而归母净利润同比下滑主要因为：occurrences
On August 22, 2024, C&D International Group released its performance report for the first half of 2024. 1H24 achieved operating income of 32.753 billion yuan, +34.5% year-on-year; net profit to mother of 0.817 billion yuan, or -36.4% year-on-year.
reviews
Revenue grew steadily, and performance declined due to multiple factors such as gross margin: the company's revenue growth was mainly driven by the growth of development business (accounting for 94.7% of total revenue). 1H24 development business revenue was 31.01 billion yuan, +36.4% year over year. The year-on-year decline in net profit due to the year-on-year decline was mainly due to:
① The real estate market declined, and the gross profit margin of delivered projects declined, and the gross profit margin of 1H24 was 11.92%, down 3.33pct from the previous year; ② Inventory impairment (including management expenses), 1H24 management expenses were 0.926 billion yuan, an increase of 0.414 billion yuan; ③ The equity ratio of settlement projects decreased, and 1H24's net profit was 1.44 billion yuan, +1.2% year over year, with minority shareholders' profit and loss of 0.619 billion yuan, up 0.481 billion yuan year on year yuan.
The sales ranking grew steadily, and deep cultivation led to an increase in market share: 1H24 had full-caliber sales of 66 billion yuan, -31% YoY (42% YoY for the top 100 real estate companies); equity sales were 50.9 billion yuan, -32% YoY; and the industry ranking rose to 7th place (ranked 8th in the full year of 2023). Actively focus on operating cash flow. 1H24 full caliber repayment of 64.7 billion yuan, with a repayment rate of 98%. We continue to cultivate core cities, and 46 of the more than 70 cities we have entered are in the top 10 local sales.
Expand core cities in detail and maintain land storage liquidity: 1H24's land acquisition amount is 42 billion yuan, ranking first in the industry, with a land acquisition equity ratio of 78%, and a supplementary value of 74.2 billion yuan. The focus is on land acquisition in high-quality and deeply cultivated cities such as Hangzhou, Shanghai, Xiamen, Wuhan, and Changsha. As of 1H24, the company's land storage area was 14.45 million square meters, the land storage value was 257.7 billion yuan, the equity ratio was 77%, and the share of new goods acquired in 2022 and later accounted for 77%.
The financial security is stable, and financing costs continue to decline: 1H24's three red lines are stable. Among them, the short-term cash debt ratio is 5.0x, up 0.3x from the end of 2023; financing costs continue to decline, and the average interest rate on interest-bearing debt is 3.65%, down 10BP from the end of 2023.
Investment advice
The company's investment and marketing performance is industry-leading, with excellent asset quality, high liquidity, and steady operation and continuous development. Considering the gross margin and depreciation pressure brought about by the downturn in the industry, we lowered the company's net profit to mother in 2024/2025/2026 to 5.34/6.02/6.54 billion yuan (originally 7.85/8.26/8.72 billion yuan), with year-on-year growth rates of 6.0%, 12.8%, and 8.6%, respectively. The current price of the company's stock is 4.8/4.2/3.9 times the PE valuation, maintaining a “buy” rating.
Risk warning
The implementation of policies fell short of expectations; sales in the real estate market continued to be sluggish; other housing companies defaulted.
