New DaZheng Property (002968)2024-08-20 08:38Investment Rating - The report maintains a "Buy" rating for the company, citing its attractive valuation as a non-residential property management player in the A-share market [3] Core Views - Revenue growth in H1 2024 met expectations at 16.9% YoY, reaching 1.73 billion RMB, while net profit attributable to shareholders declined by 5.2% YoY to 80 million RMB [1] - Office property management segment showed strong growth at 23.9% YoY, contributing 42% of total revenue, while aviation-related services recovered steadily [2] - The company expanded rapidly outside its core Chongqing region, with 375 projects managed outside Chongqing, representing 13.6% YoY growth [2] Financial Performance - Gross margin for property management services declined by 2.1 percentage points to 12.7% in H1 2024 [2] - Accounts receivable grew significantly by 34.2% compared to the end of 2023, reaching 950 million RMB [2] - Operating cash flow turned negative at -160 million RMB, a 13.7% YoY decrease [1] Business Expansion - The company added 17 new banking projects in the financial property management segment, with expected annual contract value of nearly 40 million RMB [2] - New aviation-related projects included in-flight services for Chongqing Airlines and property management for Chongqing Jiangbei International Airport T3A terminal [2] Valuation and Forecast - 2024-2026 EPS forecasts were revised downward to 0.74/0.84/0.95 RMB, with corresponding PE ratios of 12/10/9 times [3] - Revenue growth projections for 2024-2026 stand at 17.47%, 15.53%, and 14.32% respectively [4] - ROE is expected to stabilize around 13% in the coming years [4] Market Position - The company is recognized as a leading third-party public property management service provider with strong expertise in public building management [3] - It maintains a competitive advantage through its extensive experience and reputation in public property management [3]