Zhongtai Securities: CECL's financial condition is good, with significant financing advantages, initiating a "Buy" rating

Zhongtai Securities research report points out that CECL's settlement affects short-term performance, but future revenue scale is guaranteed. As of the end of the third quarter of 2024, the company's contract liabilities amounted to 11.1 billion yuan, a year-on-year increase of 4.5%. As sold projects enter the settlement period, the company's future revenue is secured. Since its listing, the company has accumulated cash dividends of up to 4.34 billion yuan, actively rewarding shareholders. With the continuous release of the company's performance, future dividend amounts are expected to further increase. CECL has stable sales, abundant low-cost high-quality land reserves, good financial condition, and significant financing advantages. At the same time, it is backed by Shanghai Real Estate Group to promote urban renovation strategies, which is expected to benefit fully in the future. It is estimated that the company's net profit attributable to the parent from 2024 to 2026 will be 560 million, 650 million, and 660 million yuan, corresponding to PE ratios of 32.3, 28.0, and 27.4 times, respectively. This is the first coverage, and the company is given an "overweight" rating