C&D INC.(600153) 广发证券·2024-12-23 07:52Investment Rating - The report maintains a "Buy" rating for the company with a target price of 10.58 CNY per share, while the current price is 10.37 CNY [5]. Core Views - The acquisition of a 10% stake in Jianfa Real Estate from the controlling shareholder Jianfa Group is seen as a reasonable valuation, with a price-to-book (PB) ratio of 1.07x, which is lower than the previous acquisition's PB ratio of 1.27x [2]. - The acquisition is expected to enhance the company's share in quality assets, potentially improving profitability, as Jianfa Real Estate accounted for 82% of the company's total sales in 2023, with a sales amount of 188.9 billion CNY [2]. - The company has committed to a cash dividend payout ratio of no less than 30% for 2024-2025, with a minimum dividend of 0.7 CNY per share, which corresponds to a dividend yield of 6.75% based on the closing price on December 20 [2]. Financial Forecasts - The company is projected to achieve a net profit of 3.49 billion CNY in 2024 and 4.1 billion CNY in 2025, with a significant drop in net profit expected in 2024 due to ongoing impacts from the supply chain business [3]. - Revenue is forecasted to decline from 763.68 billion CNY in 2023 to 673.07 billion CNY in 2024, reflecting a decrease of 11.9% [4]. - The company's earnings per share (EPS) is expected to drop to 1.18 CNY in 2024, before recovering to 1.39 CNY in 2025 [4].