The Zhitong Finance App learned that Damo released a research report stating that it gave Jiulongcang Real Estate (00004) a “reduced holdings” rating, with a target price of HK$19. The company's basic profit reached 3.6 billion yuan last year, and the impairment provision for beneficiary properties fell to about 1.9 billion yuan (5.7 billion yuan in 2022).
The bank pointed out that the company's mainland leasing business EBIT rose 4% year on year in the second half of last year, and the annual turnover rent revenue increased 1% year on year, accounting for 28% of the mainland's rent revenue. In terms of property development, the Mainland's share of contracted sales fell 62% year over year to 2.6 billion yuan last year, and the EBIT profit margin reached 14%. The bank also indicated that due to a drop in throughput, logistics EBIT fell 50% year on year last year. Also, due to sales and losses, the company's investment portfolio was reduced to 42 billion yuan, and the net debt ratio reached 5.3%.