CMPO(SZ:001914) Shenwan Hongyuan Securities·2025-05-06 09:17Investment Rating - The report maintains a "Positive" rating for the property management industry [4][5][6] Core Viewpoints - The property management industry is experiencing overall deceleration, with a continued differentiation among companies. In 2024, the overall revenue growth of the property management sector was +4.2%, a decrease of 3.5 percentage points compared to the previous year. First-tier companies saw a revenue increase of +5.6%, while second-tier companies experienced a +2.9% growth [3][12][15] - The overall net profit of the property management sector declined by -18.2% in 2024, with first-tier companies' net profit decreasing by -18.3% and second-tier companies by -21.4%. This decline is attributed to factors such as the continuous downturn in real estate sales and new construction since the second half of 2021, as well as increased impairment provisions for receivables [3][5][15] - The report highlights that the property management industry possesses unique characteristics, including significant growth potential, a walled property attribute, and a legacy of concentration. Despite short-term challenges due to the real estate downturn, high-quality property management companies are expected to benefit from increased concentration and efficiency improvements, leading to greater growth opportunities [4][6] Summary by Sections 1. Revenue Growth and Performance Decline - In 2024, the property management sector's revenue growth slowed to +4.2%, with first-tier companies at +5.6% and second-tier at +2.9% [12][15] - The net profit for the sector fell by -18.2%, with first-tier companies at -18.3% and second-tier at -21.4% [15][17] 2. Profitability Metrics - The overall gross margin for the property management sector was 18.5%, down by 1.3 percentage points year-on-year. First-tier companies had a gross margin of 17.6%, while second-tier companies had 19.6% [20][22] - The net profit margin for the sector was 3.8%, a decrease of 1.1 percentage points, with first-tier companies at 4.5% and second-tier at 2.5% [35][36] 3. Service Revenue Composition - In 2024, the revenue composition for property management services, non-owner value-added services, and owner value-added services was 73%, 9%, and 11%, respectively. The revenue growth rates were +10%, -16%, and +0.2% [60][61] - The average managed area for 13 major property management companies increased by 9.0% year-on-year, while the average contracted area grew by 3.7% [72][73] 4. Financial Ratios and Returns - The overall asset-liability ratio for the property management sector was 44.6%, an increase of 2.5 percentage points year-on-year. The return on equity (ROE) for the sector was 4.4%, down by 3.2 percentage points [4][5][6] - The average receivables impairment ratio reached 32.2%, up by 12.7 percentage points year-on-year, indicating increased financial pressure on property management companies [44][45]