CMPO(SZ:001914) HTSC·2025-08-28 05:00Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company achieved a revenue of 9.11 billion RMB in H1 2025, representing a year-on-year growth of 16%, while the net profit attributable to shareholders was 470 million RMB, up 9% year-on-year. The revenue growth exceeded the previous full-year expectation of 7%, but the net profit growth was slightly below the 11% forecast due to lower gross margins from rapidly growing professional value-added services [1][2]. - The company continues to improve its basic property management profitability and maintain a competitive advantage in market expansion [1][3]. Summary by Sections Revenue and Profitability - The company's revenue from basic property management increased by 8% to 6.85 billion RMB in H1 2025, with a gross margin improvement of 0.6 percentage points to 11.6%. The residential and non-residential revenue grew by 12% and 6% respectively [3]. - The professional value-added services segment saw a significant revenue increase of 87% to 1.72 billion RMB, primarily due to strategic collaboration with China Merchants Shekou, although this segment has a lower gross margin of 8% [2][3]. Cash Flow and Receivables - The company's accounts receivable decreased by 10% year-on-year, and the operating cash flow showed a narrowing net outflow compared to the same period last year, indicating strong cash flow management [2]. Asset Management - The asset management segment's revenue grew by 6% to 310 million RMB, but the gross margin declined by 4.1 percentage points to 48.6% due to increased personnel costs [4]. Earnings Forecast and Valuation - The report projects EPS for 2025, 2026, and 2027 to be 0.88, 0.98, and 1.08 RMB respectively. The target price is set at 14.96 RMB, based on a 25 PE ratio, reflecting the company's strong market expansion capabilities and improving profitability in basic property management [5][7].