Midea Real Estate Holding (3990.HK) Q1 2024 Earnings Report

Midea Real Estate Holding Limited reported QQ1 2024 results that reflect ongoing sector headwinds in China’s property market, with a material revenue decline and thin earnings power. Revenue came in at 12.57 billion CNY, down 30.8% year-over-year and 32.5% quarter-over-quarter, while gross profit was 1.16 billion CNY for a gross margin of 9.23%. Net income was 187.93 million CNY, up meaningfully versus Q4 2023 on a QoQ basis, but still down versus the prior-year period. The quarter benefited from a sizable one-time or non-operating uplift in total other income of 436.30 million CNY, which helped lift income before tax to 611.96 million CNY and drove a net income margin of 1.50%. Operating margin remained modest at 1.40% with EBITDA of 252.67 million CNY (EBITDA margin ~2.01%). On the balance sheet, the group carries substantial leverage: total debt of 37.11 billion CNY and net debt of 25.69 billion CNY, with a debt-to-capitalization ratio of 0.596. The company also shows strong liquidity on paper with cash and short-term investments totaling about 15.55 billion CNY, but cash flow from operations was negative at -1.93 billion CNY and free cash flow was -1.96 billion CNY, suggesting ongoing capital requirements to fund land purchases and project execution. Inventory remains very high at 80.73 billion CNY, contributing to a very long implied inventory days (637 days) and reflecting the stage of property development. Valuation metrics imply a discount to peers (P/E ~6.9, P/B ~0.206), but the investment case hinges on a sustained improvement in operating cash flow, inventory turnover, and policy-driven demand recovery. There is no QQ1 2024 earnings call transcript provided in the data; direct management quotes are therefore not available for incorporation.