incident. In the first half of 2024, the company achieved operating income of 24.842 billion yuan, a year-on-year decrease of 21.08%; net profit to mother was 1.265 billion yuan, a year-on-year decrease of 34.35%.

In terms of financial data: (1) As of June 30, 2024, the net cash flow from the company's operating activities was 0.665 billion yuan, a year-on-year decrease of 98%. (2) In the first half of 2024, the company achieved a weighted average return on net assets of 5.54%, a year-on-year decrease of 5.01 percentage points.

According to the company's 2024 semi-annual report:

Sales situation: In the first half of 2024, the company eliminated sales to the core, achieving sales of 45.2 billion yuan, ranking 11th in Lexry's sales list, an increase of 3 places over 2023. Among them, the Zhuhai region completed sales of 12.025 billion yuan, accounting for 26.6% of sales; the South China region completed sales of 16.049 billion yuan, accounting for 35.5% of sales; the East China region completed sales of 16.234 billion yuan, accounting for 35.9% of sales; and the northern region completed sales of 0.891 billion yuan, accounting for 2.0% of sales.

Real estate development situation: Pre-collected property balance (including sales tax) of 96.394 billion yuan at the end of the first half of 2024.

In the first half of 2024, the new construction area was 0.7563 million square meters, and the completed area was 3.0392 million square meters. In the first half of 2024, the project area under construction was 10.0767 million square meters, and the planned construction area of the land to be developed was 3.6466 million square meters.

In terms of financing: By the end of the first half of the year, the company's balance ratio excluding advance payments was 61.31%, down 109 bps from the end of 2023. The proportion of long-term interest-bearing debt in total interest-bearing debt remained above 80%, and continued to maintain a steady balance and liability structure. In the first half of 2024, the company continued to strengthen capital control and optimize financing costs. The comprehensive financing cost in the first half of the year was 5.13%, down 35 bps from 2023; successfully implemented innovative CCB Huajin-Huafa Stock Consumer Infrastructure Pre-REITs of 2.125 billion yuan; maintained high-quality credit fundamentals, and maintained AAA in 2024.

The company relies on the main residential business to promote the “three major supports” of commerce, property, and upstream and downstream industrial chains to improve quality and efficiency. In terms of commercial operations, the company achieved rental income of 0.368 billion yuan in the first half of the year, an increase of 45.45% over the previous year. In terms of property management, property services achieved revenue of 0.845 billion yuan in the first half of the year, an increase of 26.69% over the previous year; by the end of June, the fee-charging floor area reached 36.54 million square meters, an increase of 21.9% over the previous year.

Investment advice: The reasonable value range is 6.84 yuan to 8.55 yuan, maintaining the company's “superior to the market” rating. We expect the company's EPS to be 0.71 yuan in 2024 and 8.55 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 6.84 yuan to 8.55 yuan, corresponding to the company's dynamic PE of 9.63-12.04 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.

Risk warning. Real estate sales and price decline risk; risk of poor diversification of the company's diversified business development, etc.