Core Insights - The Kunming real estate market experienced a decline in transaction volume but an increase in prices, driven by the sales of upgraded residential products with zero public area [1][3] - The first fourth-generation residential project, Yicheng·Danxia Cuiyu, launched with an average transaction price exceeding 20,000 yuan per square meter [1][10] - The latest LPR remained unchanged, with the one-year LPR at 3.1% and the five-year LPR at 3.6% [15] Market Performance - Last week, Kunming's real estate market saw a total supply of 13,100 square meters, a 17% decrease week-on-week, while transactions reached 51,900 square meters, a slight 3% decline [1] - The average transaction price was approximately 13,341 yuan per square meter, reflecting a 4% increase compared to the previous week [1] - The top-selling fourth-generation residential project, Bangtai·Guanyun, achieved a sales amount of about 78 million yuan, with an average transaction price of approximately 18,892 yuan per square meter [3] Project Launches - The Yicheng·Danxia Cuiyu project sold 190 high-rise units with a total sales of 350 million yuan during its initial launch, achieving a take-up rate of about 24% [5][10] - The project emphasizes zero public area and features a fully intelligent community, integrating advanced technology with high-quality residential offerings [12] - Another project, Zhuoyue Dianchi Qingcui A3, launched 126 units with a take-up rate of approximately 41% and an average transaction price between 10,500 and 12,000 yuan per square meter [13] Land Transactions - Only one commercial land parcel was sold last week, measuring approximately 23.43 acres, acquired by Kunming Rail Transit Group for 86.22 million yuan, with a floor price of about 3,450 yuan per square meter [5] Policy Updates - The new housing purchase subsidy policy was implemented across five districts in Kunming, allowing for refunds up to 30,000 yuan [15]

地产开发业务剥离，持续经营业务营收37.26亿，同比增长33%。 ◎ 作者 / 沈晓玲、易天宇 核 心 观 点 【地产开发业务剥离上市平台，前9月地产合约销售下滑47%】 美的置业已于2024年10月22日从上市主体剥 离房地产开发及销售业务。2024年前9月，美的置业共实现合约销售金额约284亿元，较同期下降47%。据 2024年年报披露，美的置业的非持续经营业务税后溢利为亏损28亿。在此影响下，美的置业整体净利润为亏 损23.5亿。虽然年报中未有披露亏损原因，但结合当前大多数房企均有计提减值的因素来看，可能是由于拨备 存货跌价准备，或信用减值损失等等。 【保留业务营收增长33%，物业管理营收占比49%】 2024年美的置业持续经营业务的营业收入为37.26亿， 同比增长33%。从各业务占比来看，物业管理占比较大，达49%。其次是资产运营占比27%。在业绩会中管理 层表示，"未来三年内，物管服务及开发服务两者在上市平台中规模占比基本会保持在70%左右的水平。"毛利 率为35.7%；净利率为13%。管理层表示，预计2025年营收复合增长不低于25%，归母净利润复合增长不低于 20%。 【物管及开发服务依赖母公 ...

Core Viewpoint - After divesting its real estate development business, Midea Real Estate has achieved double growth in revenue and profit from its retained operations [1] Group 1: Financial Performance - Midea Real Estate reported a revenue of 3.73 billion yuan, a year-on-year increase of 33% [1] - Gross profit reached 1.331 billion yuan, up 38.7% year-on-year, with a gross margin of 35.7%, an increase of 1.3 percentage points [1] - The core net profit attributable to shareholders from continuing operations was 500 million yuan, reflecting a year-on-year growth of 25% [1] Group 2: Business Segmentation - The company’s revenue sources post-restructuring include development services, property management services, asset operations, and real estate technology [1] - Property management services generated 1.839 billion yuan, a 12.6% increase, accounting for 49.3% of total revenue [1] - Asset operations revenue was 987 million yuan, up 91.8%, while real estate technology revenue was 606 million yuan, down 6.2% [1] - Development services revenue was 293 million yuan, representing only 7.9% of total revenue [1] Group 3: Future Outlook - Midea Real Estate's management anticipates a compound annual growth rate (CAGR) of at least 25% in revenue and 20% in net profit attributable to shareholders by 2025 [3] - The company plans to maintain a balanced revenue contribution from property management and development services, targeting a 70% share from these two segments over the next three years [3] - The management highlighted the potential for growth in development services, which currently accounts for a small portion of revenue but is expected to increase as the company confirms more projects [2][3]

Market Overview - The Hong Kong stock market showed positive movement in the morning, with the Hang Seng Index rising by 0.38% to close at 23,206.84 points, with a total turnover of 250.23 billion HKD [1] - Global uncertainties are increasing, leading to a cautious approach in the Hong Kong market, with upcoming data on consumption and real estate being key focus areas [1] Blue-Chip Stocks Performance - Xiaomi Group-W (01810) experienced a significant drop of 5.49%, closing at 46.5 HKD, impacting the Hang Seng Index negatively by 78.78 points [2] - Other blue-chip stocks showed mixed results, with CSPC Pharmaceutical Group (01093) rising by 10.93% and contributing 7.33 points to the index, while China Overseas Development (00688) fell by 4.46% [2] Sector Performance Pharmaceutical Sector - The pharmaceutical sector saw strong performance, with stocks like Yiming Pharmaceutical-B (01541) rising by 19.86% and Kangfang Biotech (09926) increasing by 12.86% [3] - The market anticipates policy optimizations in drug procurement, which is expected to benefit domestic pharmaceutical innovation [3] Oil Sector - Oil stocks generally rose, with CNOOC (00883) increasing by 2.7% and PetroChina (00857) up by 2.07% [4] - Concerns over geopolitical tensions have led to a rise in international oil prices, with projections for Brent crude oil prices to reach 70-75 USD per barrel by 2025 [4] Real Estate Sector - The real estate sector showed mixed results, with companies like Midea Real Estate (03990) rising by 12.04%, while China Overseas Development (00688) fell by 4.46% [6] - Data indicates a decline in sales for major real estate firms, with a 9.8% year-on-year drop in sales for the first quarter [6] Company Earnings Reports - Midea Real Estate reported a revenue of 3.73 billion HKD, a 33% increase, and a core net profit of 500 million HKD, up 25% [7] - China Overseas Development's revenue decreased by 8.58% to 185.15 billion HKD, with a profit drop of 38.95% [7] Notable Stock Movements - Lao Pu Gold (06181) reached a new high, closing up 19.07% at 868 HKD, with a significant increase in sales and net profit [8] - Haijia Medical (06078) rose by 9.97% after its founder increased shareholding, indicating confidence in the company's future [9] - XPeng Motors-W (09868) reported a 268% year-on-year increase in vehicle deliveries, reaching 33,205 units in March 2025 [10] - Pop Mart (09992) saw a 4.98% increase, with a reported revenue growth of 106.9% and a target to exceed 20 billion RMB in revenue this year [11]

Core Viewpoint - After restructuring, Midea Real Estate has strategically positioned itself to leverage its brand, capital, and synergies within the Midea ecosystem, aiming to recreate a new Midea Real Estate within three years [1] Financial Performance - In 2024, Midea Real Estate achieved revenue of 3.73 billion yuan, a year-on-year increase of 33% [1] - The core net profit attributable to shareholders reached 500 million yuan, up 25% year-on-year, with a gross margin of 35.7% [1] - As of the end of 2024, total assets were 9.72 billion yuan, net assets were 5.08 billion yuan, and the debt-to-asset ratio was 47.7% [1] Business Structure and Strategy - Midea Real Estate has shifted focus from real estate development to a light-asset model, with a business structure comprising four main segments: development services, property management services, asset operation, and real estate technology [1][2] - The management anticipates a compound annual growth rate (CAGR) of no less than 25% in revenue and 20% in net profit attributable to shareholders by 2025 [2] Property Management and Development - In 2024, property management services generated approximately 1.84 billion yuan, accounting for 49% of total revenue, with expectations for a growth rate of no less than 10% in 2025 [2] - Development services recognized revenue of 290 million yuan in 2024, representing only 8% of total revenue due to the timing of the restructuring [2] Asset Operation and Technology - The asset operation segment generated 600 million yuan in revenue from 13 commercial properties, with a focus on enhancing operational efficiency and rental income [3] - The real estate technology segment, led by Ruizhu Development, achieved revenue of 610 million yuan in 2024, with a 100% contribution from third-party projects [3] Management Philosophy - The management emphasizes the importance of adapting strategic models based on resource endowments and market conditions to ensure sustainable and controllable operations [3][4]

Core Viewpoint - Midea Real Estate aims for a compound annual growth rate (CAGR) of at least 25% in revenue and 20% in net profit attributable to shareholders by 2025, focusing on a mixed asset-light and heavy model post-restructuring [1][2]. Group 1: Business Strategy and Restructuring - The company plans to divest its real estate development business and undergo asset restructuring to significantly reduce interest-bearing liabilities while integrating high-quality assets [1][2]. - After restructuring, the business will consist of four main segments: development services, property management services, asset operation, and real estate technology [2][3]. - The company will maintain a balanced revenue contribution from property management and development services, which are expected to account for about 70% of the total revenue over the next three years [1][2]. Group 2: Financial Performance - In 2024, the retained business generated revenue of 3.73 billion yuan, a year-on-year increase of 33%, with a gross margin of 35.7% and a core net profit of 500 million yuan, up 25% [2]. - The property management segment contributed 1.84 billion yuan in revenue, reflecting a 13% increase, while the asset operation segment saw a significant growth of 91.8%, reaching 987 million yuan [2]. - Despite the high revenue contribution from property management and asset operation, the development services segment is expected to provide new growth opportunities starting in 2025 [3][4]. Group 3: Market Position and Future Outlook - The company emphasizes that it will not solely become a property management or commercial management firm post-restructuring, as it aims to leverage its full value chain in real estate development [3]. - The focus on value extraction from the existing market and competitive positioning will require a comprehensive service capability beyond just property management [3]. - The property management segment is projected to remain a crucial part of the business, with its revenue share expected to stabilize around 40% in 2025 [4].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue from continuing operations was RMB 3,725.80 million, representing a year-on-year growth of 33.3%[5] - The gross profit for the same period was RMB 1,331.69 million, with a gross margin of 35.7%, an increase of 1.3 percentage points year-on-year[5] - The company reported a core net loss of RMB 2,284.27 million, with a loss attributable to shareholders of RMB 1,993.77 million[5] - The company achieved a profit from continuing operations of RMB 503.85 million[5] - The company reported a total comprehensive income of (2,350,407) thousand RMB for the year, compared to 2,125,068 thousand RMB in the previous year, reflecting a significant loss[10] - The company reported a core net loss attributable to shareholders of RMB 1,993.77 million, with a significant decline from a net profit of RMB 627.81 million in 2023, mainly due to a downturn in real estate sales and increased impairment provisions[83] Revenue Breakdown - The property management services revenue was RMB 1,839.22 million, showing a year-on-year increase of 12.6%[5] - The asset operation revenue surged to RMB 987.20 million, marking a significant year-on-year growth of 91.8%[5] - The revenue from real estate technology decreased by 6.2% to RMB 606.47 million[5] - The development services segment generated revenue of RMB 292,915,000, which is a new addition as it did not report revenue in the previous year[27] - The property management service revenue was RMB 1,839.22 million, a 12.6% increase from RMB 1,632.74 million in 2023, primarily due to an increase in managed property area[73] - The asset operation revenue surged by 91.8% to RMB 978.20 million from RMB 514.77 million in 2023, mainly due to the delivery of new properties[74] Expenses and Liabilities - The total operating expenses increased, with selling and marketing expenses at RMB 137.29 million and administrative expenses at RMB 347.96 million[8] - Total liabilities increased to 9,724,500 thousand RMB in 2024 from 201,579,205 thousand RMB in 2023, indicating a significant rise[13] - Total equity attributable to the company decreased from RMB 5,150,983,000 in 2023 to RMB 2,742,629,000 in 2024, representing a decline of approximately 47.3%[15] - The total operating expenses for the company in 2024 were RMB 2,879,360,000, compared to RMB 2,325,345,000 in 2023, indicating an increase of 24%[34] Cash Flow and Assets - Cash and cash equivalents decreased to 1,033,953 thousand RMB in 2024 from 17,553,071 thousand RMB in 2023, indicating a decline of about 94%[13] - The company’s non-current assets were valued at 4,863,369 thousand RMB in 2024, down from 6,199,032 thousand RMB in 2023, representing a decrease of approximately 22%[13] - The total cash and bank deposits as of December 31, 2024, amounted to RMB 1,102.94 million, with cash and cash equivalents at RMB 1,033.95 million[84] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.27 per share for the fiscal year ending December 31, 2024[4] - The company declared a total dividend of RMB 357,614,000 for 2024, down from RMB 468,287,000 in 2023, representing a decrease of 23.6%[44] - The proposed final dividend for the year ending December 31, 2024, is HKD 0.27 per share, down from HKD 0.36 per share in 2023[117] Strategic Focus and Future Plans - The company plans to continue focusing on its core business segments, including property management and asset operations, while exploring new market opportunities[6] - The company aims to focus on light assets and deepen its real estate value chain products and services to create higher profit margins in the future[71] - The company aims to reduce debt and mitigate credit risk associated with real estate development by restructuring and divesting its real estate business[58] - The company plans to continue seeking certainty in its operations amidst industry changes, emphasizing resilience and determination in its growth strategy[57] Employee and Corporate Governance - As of December 31, 2024, the group employed 9,213 full-time employees, primarily located in China[98] - The company has adhered to all provisions of the Corporate Governance Code as of December 31, 2024, except for the separation of roles between the Chairman and CEO[109] - The roles of Chairman and CEO were held by the same individual until October 21, 2024, but the board believes this structure benefits the execution of strategic objectives[110] Market and Operational Insights - The company primarily engages in providing property management services, asset operation, real estate technology, and development services after the completion of the physical distribution[23] - The group focuses on four major business segments: development services, property management services, asset operation, and real estate technology[59] - The company has begun evaluating the impact of new or revised accounting standards, with no significant effect expected on current or future financial performance[21]

Financial Performance - Revenue for the first half of 2024 was RMB 25,134.1 million, a decrease of 30.6% compared to RMB 36,334.6 million in the same period of 2023[4] - Gross profit for the first half of 2024 was RMB 2,321.0 million, down from RMB 4,792.3 million in the previous year, reflecting a significant decline in profitability[4] - Core net profit for the first half of 2024 was RMB 642.5 million, while profit attributable to the company's owners was RMB 375.9 million, down from RMB 1,750.4 million in the previous year[4] - Operating profit fell to RMB 351.32 million, down 86.5% from RMB 2,609.93 million year-on-year[17] - The profit attributable to the company's owners was RMB 375.87 million, a decline of 51.9% from RMB 782.10 million in the previous year[17] - Basic and diluted earnings per share were RMB 0.26, down from RMB 0.58 in the previous year[17] - The core profit decreased by 63.3% to RMB 642.47 million from RMB 1,750.41 million in the same period last year[17] - The total profit for the six months ended June 30, 2023, was RMB 782,097 thousand, indicating a decrease in profitability compared to the previous year[104] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 178,998.0 million, a decrease of 11.2% from RMB 201,579.2 million at the end of 2023[5] - Total liabilities decreased to RMB 131,849,953 thousand, down 13.0% from RMB 151,460,458 thousand at the end of 2023[102] - The total land reserve area as of June 30, 2024, was approximately 25 million square meters, covering 315 property development projects[21] - The total liabilities as of June 30, 2024, amounted to RMB 96,216,422, with short-term borrowings of RMB 6,549,630 and long-term borrowings of RMB 26,426,256[119] Cash Flow and Financial Position - Total cash and bank deposits decreased by 33.0% to RMB 13,490.0 million from RMB 20,141.7 million[5] - The net debt ratio improved to 50.1% from 75.1% in the previous year, indicating a stronger financial position[5] - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (3,853,882) thousand, compared to RMB 1,440,420 thousand for the same period in 2023[106] - The company reported a significant increase in investments in joint ventures and associates, totaling RMB 24,185,762 thousand, compared to RMB 23,746,947 thousand at the end of 2023[101] - The company maintained sufficient cash and cash equivalents to ensure financial flexibility amid potential economic challenges[117] Business Strategy and Restructuring - The company plans to restructure its real estate development business to reduce debt and credit risk, focusing on a model of development, property management, asset operation, and real estate technology[8] - The restructuring is expected to simplify business operations and focus on light-asset, professional service-oriented businesses, reducing cyclical risks in the real estate market[15] - The company aims to enhance the quality of property management services and improve asset operation capabilities in response to the new normal in the real estate industry[9] - The company emphasizes a long-term perspective and strategic framework to ensure sustainable growth and value creation for society[9] Property Development and Sales - Contract sales amounted to approximately RMB 20.21 billion, with a total construction area of about 17.73 million square meters[18] - The company's property development and sales revenue for the reporting period was RMB 24,104.75 million, a decrease of 32.0% compared to RMB 35,466.74 million in the same period of 2023, primarily due to a reduction in the confirmed sales area[33] - The total confirmed sales area was 2.277 million square meters, down 32.9% from 3.391 million square meters in the same period of 2023[33] Market Engagement and Expansion - The company signed contracts worth 320 million yuan in the current year, with 130 million yuan from the Hong Kong and Macau markets, indicating strong market engagement[13] - The company is actively pursuing market opportunities in the Hong Kong and Macau regions, with a strategic shift towards modular construction and smart home solutions[13] - The company aims to expand its development management services, targeting public hospitals and schools, while also exploring third-party project management opportunities[14] Corporate Governance and Management - The company has committed to maintaining high levels of corporate governance, adhering to the updated corporate governance code as per the Hong Kong Stock Exchange[57] - The board of directors is responsible for establishing the company's future development direction and overall strategy, with senior management authorized to handle daily operations[58] - The chairman and CEO, Mr. Hao Hengle, has been fulfilling both roles, which the board believes is beneficial for executing the company's long-term strategic goals[60] Shareholder Matters and Dividends - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to no dividend declared in the same period of 2023[96] - The proposed distribution aims to allow shareholders to realize their investment in the company while reducing investment risks associated with the real estate development business[54] - The proposed distribution and potential sale of shares are subject to approval at a special general meeting scheduled for September 2, 2024[54] Stock Options and Share Awards - The company has issued stock options and reward shares to incentivize eligible participants[56] - The company terminated the 2020 Share Option Scheme and the 2021 Share Award Scheme, adopting new 2024 Share Option and Share Award Schemes approved by shareholders on May 24, 2024[68] - The 2024 Share Plan aims to attract, retain, and incentivize eligible participants to contribute to the company's growth and development[83] Financial Risks and Challenges - The group faces various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since December 31, 2023[116] - The group has experienced a continuous decline in pre-sale performance since June 30, 2024, impacting cash flow and liquidity[109] - The company is committed to controlling sales, marketing, and administrative expenses actively[110]

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The company is undergoing a restructuring process to divest its real estate development business, focusing on a new business model that includes development, property management, asset operation, and real estate technology [4]. - For the first half of 2024, the company reported a revenue of RMB 25.134 billion, a year-on-year decrease of 30.8%, and a net profit attributable to the parent company of RMB 376 million, down 51.9% year-on-year [4][8]. - The company aims to leverage its strong financing capabilities and explore new industry models, projecting an EPS of RMB 0.71 for 2024, with a valuation range of HKD 7.73 to HKD 9.28 per share [10]. Summary by Sections Business Restructuring - The company announced plans to implement a physical distribution of shares in a private company to shareholders, effectively separating its real estate development business [4]. - The restructuring aims to create a business model that integrates development, property management, asset operation, and real estate technology, without changing the essence of its operations [4]. Financial Performance - For the first half of 2024, total revenue was RMB 25.134 billion, down 30.83% from RMB 36.335 billion in the same period of 2023 [8]. - The total profit for the first half of 2024 was RMB 1.224 billion, a decrease of 55.51% year-on-year [8]. - The company reported a net profit margin of 2.4% for the first half of 2024, down from 4.6% in the same period of 2023 [9]. Service and Commercial Operations - The company’s property management segment, 美置服务, has a contracted area of 92.18 million square meters and is expanding into industrial parks and healthcare services [4]. - The commercial segment operates 13 projects, with a focus on integrating quality assets and enhancing operational efficiency [4]. Future Projections - The company forecasts a revenue of RMB 51.112 billion for 2024, with a projected net profit of RMB 1.020 billion [12]. - The expected EPS for 2024 is RMB 0.71, with a PE ratio of 10-12 times, indicating a market capitalization range of HKD 111 billion to HKD 133 billion [10].

Investment Rating - The report does not explicitly state an investment rating for the company [1]. Core Insights - The real estate industry in 2024 is still facing deep adjustments, and the proactive exploration and effectiveness of the company in response to industry changes are noteworthy. The company is committed to a service-oriented approach, seeking stability while embracing change, and is transitioning towards a model of "development agency + property management services + asset operation + real estate technology" to achieve higher profit margins and a more scientific development model [2][4]. Summary by Sections 1. Strategic Transformation and Business Model Exploration - The company is actively reshaping its strategy and exploring new business transformation models during a period of industry clearing and transition. It maintains confidence in the real estate sector and is embracing changes to achieve better operational development. The focus is on a low-leverage, light-asset approach to deepen its involvement across the entire real estate development value chain [5][6]. 2. Strong Foundation and Future Potential - The company has a solid foundation and clear advantages in property management, commercial, industrial parks, and real estate technology. With the support of its controlling shareholder and a wealth of experience across the entire chain, the future potential is vast [6][7]. 3. Positive Profitability and Strong Financing Capability - In the first half of 2024, the company maintained positive profitability with a net profit of 596 million yuan and a core net profit of 642 million yuan, while most real estate companies faced losses. The company has a competitive dividend policy, having distributed approximately 9 billion HKD since its listing in 2018, with a payout ratio consistently above 40% [18][20]. - The company has successfully issued bonds totaling 4.12 billion yuan with interest rates below 5%, and plans to issue additional bonds at a rate as low as 2.8%. Its average financing cost has decreased to 4.54%, placing it in the top tier of credit ratings [20][21]. - The company has reduced interest-bearing liabilities by approximately 19.2 billion yuan from 2021 to mid-2024, achieving a total of 37.1 billion yuan, the lowest in its history, with a manageable debt repayment schedule [22][23]. 4. Business Segments and Development Focus - The company is focusing on three main areas: asset operation, light asset management, and real estate technology, all of which have broad prospects. It aims to expand quality light asset commercial projects and enhance asset management capabilities [16][17]. - In property management, the company is extending its services beyond residential to include industrial parks and healthcare, with a focus on creating a comprehensive service system that combines basic services with value-added operations [8][9]. - The real estate technology segment is centered on modular construction products, with plans to expand into the prefabricated interior market, indicating a shift towards sustainable development practices [11][12]. 5. Overall Outlook - The company is expected to become a more promising and valuable listed entity, supported by a resilient corporate culture and the backing of its controlling shareholder [23].