Jinwu Financial News | According to the Southwest Securities Research Report, in 2023, Longhu Group (00960) achieved operating income of 18.74 billion yuan, a year-on-year decrease of 27.9%, achieving net profit attributable to mother of 12.85 billion yuan, a year-on-year decrease of 47.3%. Excluding changes in fair value, core net profit to mother fell 49.6% year-on-year to 11.35 billion yuan. Gross profit of 30.58 billion yuan, gross margin of 16.9%. The profit margin after core tax was 8.7%, -3.6 pp year on year, and the profit margin after core equity was 6.3%, -2.7 pp year on year.
According to the bank, the company's finances are generally stable and improving. The company's short-term cash debt ratio was 1.96, the net debt ratio decreased by 2.2 percentage points to 55.9% year on year, the balance ratio excluding advance accounts receivable was 60.4%, and the short-term cash debt ratio after excluding pre-sale supervision funds and restricted funds was 1.36, maintaining the “green file” level. At the same time, the debt structure was optimized, and the average loan period was 7.85 years. Comprehensive loans at the end of 2023 were 192.65 billion yuan, down 7.4% year on year. The average borrowing cost was 4.24% per annum and 60.42 billion yuan in cash on hand.
The bank expects the company's net profit to be maintained at a compound growth rate of 4.0% in 2024-2026. Considering the steady growth of the company's operating business, it has many high-quality commercial assets, which can contribute to steady cash flow and maintain a “holding” rating.