TANDE(SH:600665) Huachuang Securities·2024-08-31 17:07Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 3 yuan, compared to the current price of 2.35 yuan [1][2]. Core Views - The company is focusing on deepening its strategy in the Xi'an market, where it has established a strong reputation and operational capability. Despite recent profit pressures from non-core city projects, the adjustment in strategy is expected to gradually restore profitability [2]. - The company reported a significant decline in revenue and net profit for the first half of 2024, with total revenue of 2.039 billion yuan, down 57.86% year-on-year, and a net profit of -28.67 million yuan, down 201.67% year-on-year [1][2]. - The gross margin for the first half of 2024 was approximately 9.2%, a decrease of 2.2 percentage points compared to the same period last year, although there was an improvement in the second quarter [1][2]. Summary by Sections Financial Performance - The company achieved a total revenue of 11.526 billion yuan in 2023, with a projected revenue of 10.942 billion yuan for 2024, reflecting a year-on-year decline of 5.1% [2][6]. - The net profit for 2023 was -390 million yuan, with an expected recovery to 175 million yuan in 2024, indicating a year-on-year growth of 144.9% [2][6]. - The earnings per share (EPS) are projected to be -0.45 yuan for 2023, improving to 0.20 yuan in 2024, and further to 0.27 yuan in 2025 [2][6]. Market Strategy - The company has acquired a residential land plot in Xi'an High-tech Zone with a total price of 1.082 billion yuan, focusing its investment strategy on this area [1][2]. - The company plans to acquire land totaling 510,000 square meters with an estimated investment of 5.6 billion yuan in 2024, maintaining a cautious approach to new acquisitions [1][2]. Cost Management - Financing costs have decreased, with a total financing of 2.717 billion yuan in the first half of 2024, including a historical low interest rate of 3.53% for a 500 million yuan medium-term note [1][2]. - The company has successfully reduced sales and management expenses by 36.58% and 2.96% respectively in the first half of 2024 [1][2].