$KB Home (KBH.US)$🎯 2024.2.2 The current price is 58.88, an...

New data: 23Q3, 23Q4

In 2023, revenue contracted 7.1% as planned, operating profit shrank 29.6%, and net profit shrank 27.7%.

The balance ratio fell from 45% at the beginning of the year to 42.7%, and the drop in inventory by 400 million yuan and the increase in cash by 400 million dollars are all good phenomena. Long-term loans fell by 150 million to 1.69 billion yuan, accounting for 44.4% of the net assets of 3.81 billion yuan. However, interest did not seem high; instead, interest income was generated in 23 years.

Net cash flow in 2023 was much higher than net investment, and management's response to the sector cycle was reasonable.

The current price-earnings ratio is 8.4. If you calculate the 5-year average net profit of 510 million, the price-earnings ratio is 8.8, and the dividend ratio is currently 1.2%. The valuation is still within a reasonable range, so there is no need to adjust positions.