CMPO(SZ:001914) HTSC·2025-03-17 07:35Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 14.96 RMB [7][8]. Core Insights - The company reported a revenue of 17.17 billion RMB for 2024, a year-on-year increase of 10%, and a net profit attributable to shareholders of 840 million RMB, up 14% year-on-year, slightly exceeding expectations due to better-than-expected gross margin improvements in basic property management [1][2]. - The company demonstrated strong performance in profitability, market expansion, and cash flow, while gradually improving its dividend payout ratio [1][4]. - The property management sector faced intense competition, but the company achieved a 4% year-on-year increase in new third-party contracts, totaling 3.69 billion RMB, with residential contracts growing by 46% [3]. Summary by Sections Financial Performance - The company's basic property management revenue grew by 11% year-on-year, with a gross margin increase of 1.9 percentage points to 10.7% [2]. - The operating cash flow net amount reached 1.84 billion RMB, with a coverage ratio of cash flow to net profit at 218% [4]. - The company adjusted its earnings per share (EPS) forecasts for 2025 and 2026 to 0.88 RMB and 0.98 RMB, respectively, reflecting a 4% and 3% increase [5]. Market Expansion - The company has been actively expanding its market presence, particularly in residential property management, while maintaining its strength in non-residential sectors [3]. - The new contracts from related real estate companies decreased by 33% year-on-year, indicating challenges in the market [3]. Dividend Policy - The dividend payout ratio increased by 5 percentage points to 30%, marking three consecutive years of improvement [4]. - The company aims to close the gap with other leading property management firms in terms of dividend distribution [4].