Binjiang Group(002244) 国金证券·2025-04-27 03:23Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Insights - The company achieved a revenue of 69.152 billion RMB in 2024, a year-on-year decrease of 1.83%, while the net profit attributable to shareholders was 2.546 billion RMB, reflecting a slight increase of 0.66% [2][3] - The company's gross margin decreased to 12.54% in 2024 from 16.76% in 2023, primarily due to the settlement of low-margin projects from 2020-2021, with expectations for gradual recovery as higher-margin projects from 2022-2024 are recognized [3] - The company ranked 9th in the industry sales ranking, entering the top 10 for the first time, and is the only private real estate company in this group [3] - The company's interest-bearing debt decreased to 30.5 billion RMB, and cash and cash equivalents increased to 32.7 billion RMB, marking the first time cash exceeds debt [4] - The company focused its investments in Hangzhou, with land reserves in the city increasing to 70% of total land holdings, enhancing its future growth prospects [4] Financial Performance Summary - The company’s revenue for 2024 is projected to decline slightly in the following years, with estimates of 68.518 billion RMB in 2025 and 68.050 billion RMB in 2026 [9] - The net profit is expected to grow significantly in the coming years, with projections of 3.050 billion RMB in 2025, 3.558 billion RMB in 2026, and 4.037 billion RMB in 2027, reflecting year-on-year growth rates of 19.81%, 16.65%, and 13.48% respectively [9][5] - The average price-to-earnings (P/E) ratio for the company is projected to be 10.2x in 2025, 8.7x in 2026, and 7.7x in 2027, indicating a favorable valuation [5] Market Position and Strategy - The company is strategically focused on the Hangzhou market, which is characterized by high demand and resilience, positioning it to benefit from future sales and investment opportunities [5] - The company’s land acquisition strategy has led to a significant market share in Hangzhou, with a 37% share in the local land market [4]