Jinwu Financial News | According to Haitong Securities Research, China Resources Land (01109) achieved a turnover of 251.14 billion yuan in 2023, +21.3% year over year; net profit to mother was 31.37 billion yuan, +11.7% year over year. As of December 31, 2023, the company's consolidated gross profit margin was 25.2%, -1.0 percentage point year on year; together with the paid interim dividend and recommended final dividend, the annual dividend per share will be RMB 1.441, +2.9% year over year. By the end of 2023, the company's asset management scale reached 427.46 billion yuan, +19.2% year-on-year, of which shopping centers accounted for 63.3%. Huaxia Huarun Commercial REIT (180601.SZ) was successfully listed on the Shenzhen Stock Exchange on March 14, 2024, raised nearly RMB 7 billion in capital, completed the construction of a commercial REITs platform, realized a closed loop system of investment, finance, construction and management, and laid a solid foundation for the gradual transformation into a major asset management business.
The bank continued that the company's cash on hand was 114.3 billion yuan, +17.3%; total interest-bearing debt ratio and net interest-bearing debt ratio fell to industry lows of 38.4% and 32.6% respectively. The three red lines remained green, and weighted financing costs were 3.56%, a record low in nearly ten years. The bank believes that the company has sufficient operating cash flow, a stable balance sheet, actively controlled the increase in the scale of financing during the year, measured income and output, and achieved healthy endogenous development.
The bank considers that the company is a leading real estate in the central region, and that profit growth is steady and orderly. The bank believes that the enterprise's commercial and residential integration and comprehensive urban development model are in line with the development direction of the new real estate industry model. The 2024 EPS is RMB 4.75, a 10-11 times PE valuation. The corresponding market value range is HK$3700-407 billion, and the corresponding reasonable value range is HK$51.89-57.08 per share, maintaining the “superior over market” rating.