Investment Rating - The report upgrades the investment rating of the company from Hold to Buy, with a target price set at HKD 4.91, reflecting a 10x P/E ratio for 2024 [2][3][4]. Core Insights - The company achieved a net profit growth of 18.9% year-on-year in the first half of 2024, supported by effective cost control and a strong performance in property management services [2][6]. - The management maintains a net profit growth target of over 20% for 2024, driven by the integration of acquired companies and a lower base in the second half of the year [2][3]. - The company's independence has significantly improved, with the proportion of third-party managed saleable area increasing from 33% in 2022 to 50.5% in 2024 [3][4]. Financial Performance - For the first half of 2024, the company reported a revenue increase of 10.2% to RMB 1.5 billion, with property management (PM) revenue growing by 34.6% to RMB 1 billion [2][6]. - The gross profit margin (GPM) for basic PM improved by 1.3 percentage points to 24.6%, while the GPM for community value-added services (VAS) increased by 3.6 percentage points to 42.3% [2][6]. - The company expects to manage an additional 8 million square meters of building area from the acquisition of RUNWU JIAYE, contributing approximately 27% to the annual total [2][3]. Revenue and Profit Forecast - Revenue is projected to grow from RMB 2.7 billion in 2023 to RMB 3.1 billion in 2024, with a compound annual growth rate (CAGR) of 14.4% [5][9]. - Net profit is expected to rise from RMB 337.3 million in 2023 to RMB 399.6 million in 2024, reflecting an 18.5% increase [5][9]. - The earnings per share (EPS) is forecasted to increase from RMB 0.37 in 2023 to RMB 0.44 in 2024 [5][9]. Valuation Metrics - The company is currently trading at a P/E ratio of 5.3x for 2024, which is below the industry average, indicating potential undervaluation [5][12]. - The price-to-book (P/B) ratio is projected to decline from 1.4 in 2023 to 1.2 in 2024, suggesting a more attractive valuation [5][12]. - The dividend yield is expected to increase from 6.6% in 2023 to 7.5% in 2024, enhancing the attractiveness for income-focused investors [5][12].
金茂服务：通过恢复的中央国有企业作为母公司 ， 提高了独立性 ； 升级购买