China Resources Land (1109) H2 2024 earnings summary

Executive summary

• Revenue rose 11.0% year-over-year to RMB278.8bn, with core net profit at RMB25.4bn, down 8.5% YoY due to margin pressure.

• Recurring income increased 6.6% to RMB41.6bn, now 14.9% of total revenue, with recurring profit contribution up to 40.7%.

• Contracted sales reached RMB261.1bn, ranking 3rd in the industry, with market share at 2.70%.

• Asset management AUM grew 8.1% to RMB462.1bn, with shopping malls as core assets.

• ESG efforts recognized with GRESB four-star rating, inclusion in major indices, and notable carbon reduction achievements.

Financial highlights

• Gross profit margin at 21.6%, with gross profit of RMB60.33bn; EPS at RMB3.564; DPS at RMB1.319.

• Cash and cash equivalents rose 16.5% to RMB133.2bn; net gearing ratio at 31.9%.

• Weighted average funding cost dropped 45bps to 3.11%, with average debt maturity extended to 6.7 years.

• Total borrowings stood at RMB259.78bn; total assets at RMB1,128.4bn.

• Dividend payout ratio maintained at 37%, with annual DPS at RMB1.319.

Outlook and guidance

• Plans to increase operating shopping malls to 116 by 2028, focusing on tier-one and tier-two cities.

• 2025 saleable resources projected at RMB500.9bn, with 89% in top-tier cities; unbooked contracted sales at RMB293.5bn.

• Management expects gradual sector recovery with policy support and improved market confidence.

• Emphasis on sustainable growth, balanced launches, and high-quality asset portfolio.

• Prudent investment strategy and financial discipline, with no major acquisitions planned.