Core Viewpoint - The company has adjusted its profit forecasts for 2025 and 2026, lowering them by 16% and 15% to 420 million and 440 million yuan respectively, reflecting a year-on-year decline of 12% and a growth of 5% [1] Financial Performance - In the first half of 2025, the company's revenue increased by 3% to 3.46 billion yuan, while net profit attributable to shareholders fell by 19% to 210 million yuan, which was below market expectations due to declining gross margins in core businesses and increased provisions for receivables [2] - The company plans to distribute an interim dividend of 0.095 HKD per share, with a payout ratio of 70%, resulting in an interim dividend yield of 4.4% [2] Business Development - The company achieved an annualized contract amount of approximately 870 million yuan from third-party expansion in the first half of 2025, marking a historical high for the half-year period with a year-on-year growth of 9% [3] - The managed area increased by 7% year-on-year to 25.4 million square meters, while the company continued to exit non-core cities and low-quality projects, resulting in a reduction of managed area by 15.68 million square meters [3] Margin and Cash Flow - The gross margin of core businesses faced pressure, with the gross margin for basic property services declining by 2 percentage points to 18.5%, attributed to rising labor costs and increased service quality investments [4] - The gross margin for community value-added services dropped by 8.9 percentage points to 28.2%, mainly due to a decrease in the proportion of high-margin parking space sales and leasing [4] - Operating cash flow turned negative with a net outflow of 230 million yuan, compared to an inflow of 100 million yuan in the same period last year, primarily due to pressure on collection rates and an increase in receivables [4] Strategic Focus - The company aims to strengthen its internal capabilities and continue its strategic transformation amidst industry and economic challenges, focusing on enhancing service quality, optimizing cost structures, and strengthening team capabilities [5] - The performance of operating cash flow and shareholder returns are considered critical factors influencing the company's stock price in the future [5]
中金:维持永升服务跑赢行业评级 降目标价至2.33港元