Investment Rating - The report maintains a "Buy" recommendation for the company [1][7][12] Core Views - The company has demonstrated a solid operational foundation with a focus on enhancing shareholder returns through increased dividends, proposing a mid-term dividend of 5 HKD cents per share, a 4.2% increase year-on-year [4][7] - Despite a decline in revenue and net profit in the first half of 2025, the company shows resilience with a same-store traffic growth of 4.4% and a same-store sales growth of 11.4% [4][7] - The company is strategically positioned in the Greater Bay Area and Yangtze River Delta, with ongoing projects expected to enhance its market presence [7] Financial Summary - For the first half of 2025, the company reported revenue of 284 million HKD, a decrease of 9.4% year-on-year, and a net profit of 87 million HKD, down 2.5% year-on-year [4] - The company’s projected revenue for 2025 is estimated to be 657 million HKD, with a slight growth forecast of 2.0% [6][10] - The gross margin improved to 52.3%, reflecting a 0.7 percentage point increase, primarily due to better performance in the leasing model [7] Operational Highlights - The company maintains a high occupancy rate of 92.5% amidst competitive market conditions [7] - Cash reserves are robust, with 1.368 billion HKD available at the end of the reporting period, supporting the increased dividend payout [7] - The company has a total contracted area of approximately 2.65 million square meters, with 1.65 million square meters already operational [7] Future Outlook - The company is expected to continue its focus on the Greater Bay Area and Yangtze River Delta, with new projects planned for opening in the second half of 2025 [7] - Earnings per share (EPS) is projected to remain stable at 0.16 HKD for 2025-2027, with corresponding price-to-earnings (P/E) ratios of 7.7, 7.5, and 7.3 respectively [7][10]
星盛商业（06668）：派息提升，稳健运营