Zhi Tong Cai Jing·2025-09-09 05:53Core Viewpoint - The report from Guotai Junan indicates a slight improvement in the financial performance of 22 key property companies in H1 2025, with net profits turning positive. Despite cautious expansion, management efficiency remains stable, and valuations have increased due to stock price recovery, although they still sit at long-term low levels. Future valuations are expected to rise as companies focus on third-party expansion and cost reduction [1][2][4]. Group 1: Financial Performance - In H1 2025, the 22 tracked property companies achieved a revenue growth of 4.4% year-on-year, with the top 5 companies showing a growth rate of 7.5% [2]. - The net profit for these companies increased by 32.1% year-on-year, marking a return to profitability, particularly for the top 6-10 companies [2]. - The average gross margin for these companies was 21.5%, a decrease of 1.67 percentage points year-on-year, while accounts receivable showed slight improvement [2]. Group 2: Operational Efficiency - The average growth rate of managed area for key property companies was 4% year-on-year in H1 2025, reflecting cautious expansion due to economic conditions [3]. - Some companies, such as China Resources Vientiane Life, added 6 new shopping centers, indicating potential for future growth in managed areas [3]. - The average occupancy rates for leading companies remained stable, with China Resources Vientiane Life at 97.1%, Starry Commercial at 92.5%, and Baolong Commercial at 91.8% [3]. Group 3: Valuation and Market Performance - As of September 4, 2025, the average PE ratio for key property companies was 10.52, with a PEG ratio of 1.09 [4]. - The average market value per contracted area and managed area were 0.61 and 0.69 respectively, indicating relatively low valuations [4]. - Since the beginning of 2025, 14 property companies have experienced varying degrees of stock price increases, while only 8 companies saw declines [4]. Group 4: Company Listings - Key property companies include: - A-shares: China Merchants Jin Yu (001914), New Dazheng (002968) - H-shares: China Resources Vientiane Life (01209), Wanwu Cloud (02602), China Overseas Property (02669), Poly Property (06049), Country Garden Services (06098), Yuexiu Services (06626), and Sunac Services (01516) [5].