Investment Rating - The report maintains a "Buy" rating and adjusts the target price to HKD 0.81 [2][4] Core Views - The company reported a revenue of CNY 4.03 billion for the first half of 2024, a year-on-year decrease of 1.6%, while the net profit attributable to shareholders was CNY 180 million, an increase of 18.9% year-on-year [1] - The basic property service segment showed steady growth with revenue reaching CNY 2.76 billion, a 5.7% increase year-on-year, driven by market expansion efforts [1] - Community value-added services faced challenges, with revenue declining by 17.3% to CNY 590 million, leading to a gross margin drop to 27%, down 2.1 percentage points year-on-year [1] - Cost control measures have been effective, with a sales expense ratio of 1.5% and a management expense ratio of 10.4%, the latter down 0.5 percentage points year-on-year [1] Financial Summary - The company’s revenue for 2024 is projected at CNY 7.92 billion, reflecting a year-on-year decline of 3.4% [3] - The net profit attributable to shareholders is expected to be CNY 222 million in 2024, down 18.7% from the previous year [3] - The gross margin is forecasted to decrease to 19.2% in 2024, compared to 20.1% in 2023 [3] - The earnings per share (EPS) is projected to be CNY 0.09 for 2024, with a slight increase to CNY 0.10 by 2026 [2][3]
世茂服务：基础服务发展稳健，社区增值服务毛利率持续承压