Financial Performance - Revenue for the year reached RMB 14,023.8 million, up 7.5% from RMB 13,051.3 million in the previous year[22]. - Profit attributable to ordinary shareholders was RMB 1,510.9 million, reflecting a 12.5% increase compared to RMB 1,342.5 million in the previous year[22]. - The gross profit for the year was RMB 2,325.5 million, which is a 12.4% increase from RMB 2,069.8 million in the previous year[22]. - The net profit margin improved to 10.8%, up by 0.4 percentage points from 10.4% in the previous year[22]. - Earnings per share increased to RMB 46.00, a rise of 12.6% from RMB 40.84 in the previous year[22]. - Operating profit rose by 11.6% to RMB 2,012.4 million, up from RMB 1,803.4 million in the previous year[107]. - The company's total revenue for the year reached RMB 14,023.8 million, an increase of 7.5% compared to RMB 13,051.3 million last year[107]. - The average return on equity for ordinary shareholders decreased to 32.7%, down 4.1 percentage points from 36.8% in the previous year[22]. - The total dividend for the year will amount to HKD 0.180 per share, an increase from HKD 0.140 per share in the previous year[107]. Operational Metrics - The total managed construction area at the end of the year was 431.1 million square meters, representing a 7.4% increase from 401.5 million square meters in the previous year[22]. - The current ratio improved to 1.7, compared to 1.6 in the previous year[22]. - The debt-to-asset ratio decreased to 56.9%, down 3.7 percentage points from 60.6% in the previous year[22]. - The area under management increased to 431.1 million square meters, a 7.4% rise from 401.5 million square meters in 2023[152]. - New orders for the year amounted to 74.1 million square meters, with 63.3% coming from independent third parties, resulting in a new contract value of approximately RMB 4,441.2 million[134]. Strategic Initiatives - The company entered into a strategic cooperation framework agreement with China State Construction Technology Group, enhancing its collaborative capabilities[62]. - The company aims to transform traditional property management into modern services through "technological innovation and cross-industry collaboration" to achieve "modernization of property management"[127]. - The company is focused on enhancing project performance quality based on property service contracts to increase customer satisfaction[114]. - The company is committed to modernizing its management level through ecological chain cooperation, service system enhancement, and technology application[127]. - The company plans to optimize its business structure by phasing out 44.5 million square meters of underperforming projects to enhance operational efficiency[133]. Market Position and Recognition - The company was recognized as the "No.1 Property Service Brand Influence Enterprise" in China for seven consecutive years, highlighting its market leadership[64]. - The company serves over 100 Fortune 500 clients and has been recognized as the top property service brand in China for seven consecutive years, ranking first in Hong Kong's property management market share[119]. - The company was recognized as a vice president unit of the China Property Management Association[94]. - The company has been included in the MSCI Global Small Cap Index and continues to be recognized in the Hong Kong-Shanghai Stock Connect and Hang Seng Property Services Index[119]. Sustainability and ESG Commitment - The company has committed to reducing carbon emissions by 15% by 2030 compared to the baseline year of 2022[90]. - The company has received multiple ESG awards, including "2024 China Property Service ESG Development Excellent Enterprise," reflecting its commitment to sustainable development and carbon neutrality[120]. - The company aims to reduce carbon emissions by 15% per unit area by 2030 compared to the baseline year of 2022 as part of its carbon neutrality commitment[194]. - The company will continue to enhance coordination in managing feasible environmental protection measures across its operations, covering planning goals, compliance, risk, pollution prevention, energy saving, and green innovation[197]. Service Expansion and Innovation - The company launched the "Star Qi Smart Space Product System," the industry's first integrated solution supporting multiple business formats[75]. - The company is actively exploring new service models in "Property + Elderly Care," focusing on home adaptation for the elderly and community dining services[124]. - The company has launched innovative products such as the "Haibo Smart Charging Socket" and "Haibo Smart Energy-saving Lamp," enhancing its product portfolio[123]. - The company is enhancing its digital solutions for property management, aiming to improve operational efficiency and service quality[123]. - The company is expanding its rental and sales business through various models, aiming to become a key channel for real estate developers' new home distribution[124]. Community and Customer Engagement - The company is committed to providing diversified community services, including a ten-minute dining service circle and various value-added services, to increase customer satisfaction and loyalty[114]. - The company aims to create a community governance ecosystem where owners, property companies, and communities share responsibilities and benefits[113]. - The community value-added service brand "You Ni Interconnect" was awarded "China Quality Life Operation Brand Enterprise" in 2024, focusing on community space operations and real estate value-added services[124].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company demonstrates strong performance growth with improved operational efficiency and increased cash reserves, leading to a higher dividend payout ratio [2][3] - The main business segments, property management and community value-added services, show steady growth, contributing to 86% of total revenue [2] - The company has optimized its managed projects, enhancing operational efficiency and improving gross profit margins [3] - The company is backed by China Overseas Development and China State Construction Group, providing a rich resource for property management projects [4] Summary by Relevant Sections Financial Performance - In 2024, the company is projected to achieve revenue of 14 billion HKD, a year-on-year increase of 7.5%, with a gross profit of 2.33 billion HKD, up 12.4%, and a net profit attributable to shareholders of 1.51 billion HKD, reflecting a 12.5% increase [1] - The company plans to distribute a total dividend of 0.18 HKD per share for the year, a 29% increase compared to the previous year [1] Operational Efficiency - By the end of 2024, the company will manage an area of 430 million square meters, with new contracts signed for 74.1 million square meters, 63.3% of which comes from third parties [3] - The company has exited 44.5 million square meters of loss-making projects, optimizing its business structure and enhancing operational efficiency [3] Cash Flow and Dividends - As of the end of 2024, the company has cash and bank balances of 5.8 billion HKD, an increase of 13.1% from the previous year [3] - The dividend payout ratio for 2024 is set at 36.3%, an increase of 4.5 percentage points year-on-year [3] Profit Forecast and Valuation - The company’s net profit forecasts for 2025 and 2026 have been adjusted to 1.68 billion HKD and 1.87 billion HKD, respectively, with a new forecast for 2027 set at 2.04 billion HKD [4] - The projected price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are 10, 9, and 8 times, respectively, indicating strong valuation attractiveness [4]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to achieve stable growth supported by an expanding management scale, with a projected management area growth of 7.4% year-on-year to 431.1 million square meters by the end of 2024 [5][6] - Profit margins are anticipated to stabilize from 2025 to 2027, with net profit expected to grow at a high single-digit rate during this period [5][6] - The target price remains unchanged at HKD 6.30, indicating a potential upside of 18.6% from the current price [1][5] Financial Summary - Revenue projections for the company are as follows: - 2023: RMB 13,051 million - 2024: RMB 14,024 million (up 7.5% year-on-year) - 2025E: RMB 15,227 million (up 8.6% year-on-year) [4][10] - Core profit estimates are: - 2023: RMB 1,343 million - 2024: RMB 1,511 million (up 12.5% year-on-year) - 2025E: RMB 1,651 million (up 9.3% year-on-year) [4][10] - The company’s gross margin is expected to rebound to 16.6% in 2024, with a stable range of 16-17% projected for 2025-2027 [5][6] Share Performance - The stock has shown a year-to-date change of 3.71% and has a market capitalization of approximately HKD 17,437.83 million [3][4]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company is expected to experience stable growth supported by an expanding management scale, with a projected management area growth of 7.4% year-on-year to 431.1 million square meters by the end of 2024 [5][6] - Profit margins are anticipated to stabilize from 2025 to 2027, with net profit expected to grow at a high single-digit rate during this period [5] - The target price for the company is set at HKD 6.30, indicating a potential upside of 18.6% from the current price of HKD 5.31 [1][5] Financial Overview - Revenue projections for the company are as follows: - 2023: RMB 13,051 million - 2024: RMB 14,024 million (growth of 7.5%) - 2025: RMB 15,227 million (growth of 8.6%) - 2026: RMB 16,127 million (growth of 5.9%) - 2027: RMB 16,958 million (growth of 5.2%) [4][10] - Core profit estimates are: - 2023: RMB 1,343 million - 2024: RMB 1,511 million (growth of 12.5%) - 2025: RMB 1,651 million (growth of 9.3%) - 2026: RMB 1,750 million (growth of 6.0%) - 2027: RMB 1,855 million (growth of 6.0%) [4][10] - The company’s net profit is projected to increase from approximately RMB 1.51 billion in 2024 to RMB 1.86 billion in 2027 [5][10] Market Performance - The stock has shown a year-to-date change of 3.71% and has a market capitalization of approximately HKD 17,437.83 million [3][4] - The 52-week high and low for the stock are HKD 7.12 and HKD 4.05, respectively [3]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [14]. Core Insights - The company achieved a total revenue of 14,024 million HKD in 2024, reflecting a year-on-year growth of 7.5%, while the net profit attributable to shareholders reached 1,511 million HKD, up by 12.5% [3][5]. - The improvement in profitability is attributed to an increase in property management area and enhanced value-added services, with the gross profit margin rising from 15.9% to 16.6% [5][9]. - The company proposed a dividend of 0.095 HKD per share, an increase from 0.085 HKD in 2023, indicating a commitment to shareholder returns [3][5]. Revenue Performance - The company reported a main business revenue of 14,024 million HKD for 2024, with a year-on-year growth rate of 7% projected for 2025 [2]. - The net profit attributable to shareholders is forecasted to grow from 1,511 million HKD in 2024 to 1,870 million HKD by 2026, reflecting a steady growth trajectory [2][9]. Business Segments - The property management area increased to 431 million square meters, a 7.4% growth year-on-year, with third-party project area contributing 39.4% [7]. - The revenue from property management services rose to 76.1% of total revenue, up from 72.1% in 2023, indicating a strategic focus on core business [7]. Value-Added Services - The non-residential value-added services revenue decreased by 14.7% year-on-year to 1,829 million HKD, while residential value-added services revenue grew by 7.2% to 1,385 million HKD, maintaining its share of total revenue [8][9]. - The company is actively optimizing its service structure in response to the downturn in the real estate sector [8]. Financial Projections - The earnings per share (EPS) is projected to increase from 0.46 HKD in 2024 to 0.63 HKD by 2027, reflecting a consistent growth outlook [2][9]. - The price-to-earnings (P/E) ratio is expected to decline from 9.9 in 2025 to 7.2 by 2027, indicating potential undervaluation [2][9].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [15]. Core Insights - The company achieved a total revenue of HKD 14.024 billion in 2024, representing a year-on-year growth of 7.5%, while the net profit attributable to shareholders reached HKD 1.511 billion, up 12.5% year-on-year [4][6]. - The company plans to distribute a dividend of HKD 0.095 per share, an increase from HKD 0.085 per share in 2023, reflecting a commitment to enhancing shareholder returns [4][6]. Revenue and Profitability - The company's revenue growth is attributed to an increase in property management area and the expansion of value-added services [6]. - The gross profit margin improved from 15.9% to 16.6% due to cost-saving measures and better management of loss-making projects [6]. - The company’s core property management business is expected to maintain steady growth, with projected revenues of HKD 15.426 billion in 2025 and HKD 16.814 billion in 2026 [10]. Business Operations - The managed area increased to 431 million square meters, a 7.4% year-on-year growth, with third-party project contributions accounting for 39.4% of this area [8]. - The company signed new contracts worth HKD 4.441 billion during the reporting period, including notable projects in Beijing, Chengdu, and Hong Kong [8]. Value-Added Services - The company’s non-residential value-added services revenue decreased by 14.7% year-on-year to HKD 1.829 billion, while residential value-added services revenue grew by 7.2% to HKD 1.385 billion [9]. - The proportion of non-residential services in total revenue fell from 16.5% in 2023 to 13.0% in 2024, indicating a shift in service focus due to market conditions [9]. Financial Projections - The report projects earnings per share (EPS) of HKD 0.51 for 2025 and HKD 0.57 for 2026, with a long-term outlook for EPS to reach HKD 0.63 by 2027 [10]. - The net asset return rate is expected to decline from 37% in 2023 to 21% by 2027, reflecting the anticipated market challenges [3].

Investment Rating - The investment rating for the company is "Outperform the Market" [7][23]. Core Viewpoints - The company's business development is stable and improving, with an increase in both quantity and quality of operations [3]. - The property management services are experiencing steady growth, and profitability is on the rise [7][8]. - The company is focusing on expanding its non-residential business to enhance operational independence [10][13]. Financial Performance Summary - In 2024, the company's total revenue is projected to increase by 7.5% to HKD 14.024 billion, with a gross profit increase of 12.4% to HKD 2.326 billion, resulting in a gross margin of 16.6%, up 0.7 percentage points from 2023 [6][8]. - Net profit attributable to shareholders is expected to rise by 12.5% to HKD 1.511 billion, with basic and diluted earnings per share (EPS) of HKD 0.46, reflecting a 12.6% year-on-year growth [6][8]. - The company’s return on equity (ROE) is projected to be 32.7%, a decrease of 4.1 percentage points compared to 2023 [8]. Business Analysis Summary - As of the end of 2024, the company manages 448 retail projects and 2,232 property projects, covering a service area of approximately 431 million square meters [10][13]. - Revenue from property management services is expected to reach HKD 10.666 billion, a year-on-year increase of 13.3%, accounting for 76.1% of total revenue [13]. - The gross margin for property management services is anticipated to improve to 16.0%, driven by effective cost control measures [14]. Dividend Analysis - The company plans to declare a total dividend of HKD 0.18 per share for 2024, with a dividend payout ratio of 35.7% and a dividend yield of 3.52% [21][25]. Valuation and Investment Recommendation - The company is expected to have an EPS of HKD 0.51 in 2025, with a valuation range of HKD 6.16 to HKD 7.70 per share based on a price-to-earnings (P/E) ratio of 12-15 times [23][24].

Core Viewpoint - The property management industry is experiencing a slowdown in growth, leading companies to focus on service quality and stable cash flow rather than aggressive expansion [1][11]. Financial Performance - In 2024, the company reported a revenue of 14.024 billion yuan, a year-on-year increase of 7.5%, with a gross profit of 2.326 billion yuan, up 12.4% [2][4]. - The net profit attributable to ordinary shareholders was 1.511 billion yuan, reflecting a 12.5% increase [2][4]. - The gross margin improved to 16.6%, up from 15.9% the previous year [4][11]. Revenue Structure - Property management services remain the primary revenue source, contributing 10.67 billion yuan, a 13.3% increase year-on-year, accounting for 76.1% of total revenue [2][4]. - Revenue from parking space sales decreased by 27.9% to 14 million yuan, while resident value-added services grew by 7.2% to 1.38 billion yuan [2][4]. Operational Metrics - The managed area increased by 7.4% to 431 million square meters, with contributions from China State Construction and China Overseas Group at 60.6% and independent third parties at 39.4% [4][6]. - The company faced challenges in achieving its strategic goal of a 1:1 ratio of internal growth to external expansion, as it did not meet this target in 2024 [4][11]. Workforce and Cost Management - The workforce decreased by 10.19%, with a reduction of 4,385 employees, leading to a drop in employee costs from 5.424 billion yuan in 2022 to 4.512 billion yuan in 2024 [11][8]. - The company is undergoing a subcontracting reform, which raises concerns about service quality and supply chain management [11]. Market Expansion and Strategy - The company is focusing on urban services, with 1.02 million square meters of managed area coming from public and other property projects, representing a 23.7% increase [12][14]. - A new urban operations department has been established to enhance market competitiveness in urban services [12][14]. Challenges in Public Construction Market - The public construction property market is under pressure, with government procurement amounts declining and payment terms extending, which may affect cash flow and project expansion [14].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company shows steady revenue growth and is actively expanding its non-residential business segments [5] - In 2024, the company achieved a revenue of 14.02 billion HKD, representing a year-on-year growth of 7.5% [5] - The gross profit for the same period was 2.33 billion HKD, with a growth of 12.4%, attributed to the increase in managed property area and enhanced value-added services [5] - The net profit attributable to the parent company increased by 12.5% to 1.51 billion HKD [5] - The company is expanding its management scale, with a total of 2,232 managed properties across 167 cities, and a managed area increase of 7.4% to 430 million square meters [5] Revenue and Profit Forecast - The forecast for 2025-2027 indicates a compound annual growth rate (CAGR) of 10.6% for net profit attributable to the parent company [5] - Revenue projections for 2025, 2026, and 2027 are 15.28 billion HKD, 16.50 billion HKD, and 17.90 billion HKD respectively, with growth rates of 9%, 8%, and 8% [2][7] - The earnings per share (EPS) are expected to rise from 0.46 HKD in 2024 to 0.62 HKD in 2027 [2][7] Business Segments Performance - Property management services revenue grew by 13.3% to 10.67 billion HKD, accounting for 72.1% of total revenue [5] - The gross margin for property management services improved to 16.0% [5] - Value-added services revenue decreased by 6.5% to 3.21 billion HKD, with non-residential value-added services declining by 14.7% [5] - The sales of parking spaces dropped by 27.9% to 140 million HKD, with a total of 2,224 spaces sold [5] Financial Metrics - The company’s return on equity (ROE) is projected to decline from 29.57% in 2024 to 23.27% in 2027 [2][10] - The price-to-earnings (P/E) ratio is expected to decrease from 10.39 in 2024 to 8.20 in 2027 [2][10] - The gross margin is anticipated to improve from 16.6% in 2024 to 17.1% in 2027 [2][7]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company achieved a revenue of 14.02 billion RMB in 2024, a year-on-year increase of 7%, and a net profit attributable to shareholders of 1.51 billion RMB, up 13% year-on-year, slightly below expectations [1][2] - The company is focusing on high-quality development by exiting low-efficiency projects, which has improved profitability despite a slowdown in revenue growth [2] - The company’s community value-added services revenue grew by 7% to 1.38 billion RMB, with a gross margin of 25.5%, indicating resilience in this segment [4] Summary by Sections Revenue and Profitability - The basic property management revenue increased by 13% to 10.67 billion RMB, driven by a 7% increase in managed area to 430 million square meters [2] - The company exited 44.5 million square meters of managed area to optimize its business structure, which positively impacted profitability [2] - The gross margins for basic property management and overall improved by 1.3 and 0.7 percentage points to 14.0% and 16.6%, respectively [2] Market Expansion - The company’s market expansion focused on quality, with new contracts decreasing by 40% to 6.571 million square meters, but high-value projects in core urban areas increased significantly [3] - The active land acquisition by the China State Construction Engineering Corporation is expected to enhance the company’s future managed area growth resilience [3] Community Value-Added Services - The community value-added services segment saw a revenue increase of 31% in brokerage services to 260 million RMB, contributing to overall growth despite a slight decline in gross margin [4] - The company responded to market expectations for increased dividends, raising the payout ratio by 4 percentage points to 36%, resulting in a dividend yield of 3.3% based on the closing price [4] Earnings Forecast and Valuation - The earnings per share (EPS) for 2025 and 2026 are projected at 0.51 and 0.58 RMB, respectively, with a target price of 7.74 HKD based on a 25 PE ratio [5][8] - The report anticipates continued steady improvement in profitability for 2025 [2][5]