Core Viewpoint - The report from CICC maintains the profit forecast for Shoucheng Holdings (00697) at HKD 604 million and HKD 706 million for 2025-2026, representing year-on-year growth of 47% and 17% respectively, and retains a "outperforming the industry" rating with a target price of HKD 2.50. The company is expected to maintain a good development trend due to the expansion of asset management scale and improved management efficiency, benefiting its parking operation and fund management businesses, while also planning to invest in new productivity sectors such as robotics and new materials, which may bring new growth opportunities [1] Group 1: 2024 Performance - In 2024, the company achieved revenue of HKD 1.215 billion and gross profit of HKD 507 million, representing year-on-year increases of 38% and 41% respectively, with net profit attributable to shareholders rising 2% to HKD 410 million, aligning with market expectations. The company declared a final dividend and special dividend totaling HKD 888 million, combined with an interim dividend of HKD 208 million, resulting in a total annual dividend of HKD 1.096 billion, corresponding to a dividend yield of 9.4% as of March 27, 2025 [1][2] Group 2: Core Business Growth - The company’s revenue of HKD 1.215 billion in 2024 was primarily driven by growth in core businesses within the asset operation and financing segments: 1) The asset operation segment saw revenue increase by 40% to HKD 921 million, mainly from a 45% rise in operational service revenue to HKD 823 million, with franchise and leasing income at HKD 47 million and HKD 51 million respectively; 2) The asset financing segment's revenue increased by 31% to HKD 294 million, although it would have decreased by 22% year-on-year if investment income were excluded. The fund management service business remained stable, with revenue rising 4.6% to HKD 192 million [2] Group 3: High Dividend Payout - The company announced a final dividend of HKD 120 million and a special dividend of HKD 768 million, totaling HKD 888 million, which exceeds market expectations. The special dividend will be distributed in three batches of HKD 256 million each, with record dates for shareholders on April 14, September 16, and December 29, 2025. This move reflects the company's confidence and aims to maximize shareholder value [3] Group 4: Financial Health - In 2024, the company's financial costs rose by 10% to HKD 116 million, primarily due to increased interest on lease liabilities. The debt-to-asset ratio increased by 5.5 percentage points to 31.2%, but remains at a healthy level within the industry [4]
中金：维持首程控股(00697)“跑赢行业”评级 目标价2.5港元