PDH(600048) 申万宏源·2024-08-21 01:10Investment Rating - Maintains a "Buy" rating [6] Core Views - Poly Development plans to issue RMB 9.5 billion in targeted convertible bonds, which have three advantages: 1) a 5.5-year conversion period, 2) early determination of the conversion price, and 3) preference from insurance funds in the current asset shortage environment [6] - The company's sales ranking remains first in the industry, with a 27% YoY decline in sales amount but a 9pct increase in sales equity ratio to 77% [5] - The company's land reserve structure continues to optimize, with 70% of reserves located in 38 core cities [5] - Poly Development's financial strength is enhanced by its low financing costs, with an average new financing cost of 2.93%, down 21BP from 2023 [6] Financial Performance - 2024H1 revenue increased by 1.6% YoY to RMB 139.25 billion, while net profit attributable to shareholders decreased by 39.3% YoY to RMB 7.42 billion [5] - Gross profit margin and net profit margin for 2024H1 were 16.0% and 7.7%, respectively, down 5.2pct and 3.3pct YoY [5] - The company's investment income increased by 65.3% YoY to RMB 1.7 billion, while minority interest income increased by 15.2% YoY to RMB 3.28 billion [5] Market Data - As of August 19, 2024, the closing price was RMB 8.18, with a price-to-book ratio of 0.5 and a dividend yield of 5.01% [2] - The company's market capitalization was RMB 97.918 billion, with a total share capital of 11.97 billion shares [2][3] Land Acquisition and Sales - In 2024H1, the company acquired 12 projects, all located in 38 core cities, with a total land acquisition amount of RMB 12.6 billion, down 82% YoY [5] - The land acquisition amount to sales amount ratio was 7%, and the land acquisition area to sales area ratio was 12% [5] - The company's land reserve at the end of 2024H1 was 71.4 million square meters, down 8% from the beginning of the year [5] Financial Summary - The company's operating income for 2024E is projected to be RMB 347.934 billion, with a net profit attributable to shareholders of RMB 12.431 billion [7] - The company's ROE for 2024E is projected to be 6.1%, with a PE ratio of 8 [7] - The company's debt indicators remain healthy, with a net debt ratio of 66.18% and a cash-to-short-term debt ratio of 1.22 [6]