Investment Rating - The report assigns a "Buy" rating for China Overseas Property (02669.HK) for the first time [6]. Core Views - The company is expected to see continuous improvement in profitability due to an increase in managed project scale and the exit of loss-making projects, alongside the delivery of high-end residential projects [6]. - Revenue and profit have maintained growth, with a compound annual growth rate (CAGR) of 23.1% for revenue and 25.7% for profit from 2019 to 2024 [7]. - The company has a strong market position, with a significant share in the property management sector, particularly in first-tier cities [8]. Summary by Sections Company Overview - China Overseas Property is a subsidiary of China State Construction Group and has nearly 40 years of experience in real estate management [18]. - The company has a robust management team with extensive industry experience, and it has maintained a stable shareholding structure with China Overseas Group holding 61.18% [20][22]. Financial Performance - The company reported a revenue of HKD 14.024 billion in 2024, a year-on-year increase of 7.3%, with a net profit of HKD 1.511 billion, up 12.5% [10][42]. - The gross margin and net margin improved to 16.6% and 10.8%, respectively, driven by an increase in the gross margin of core property management services [42]. Growth and Expansion - As of the end of 2024, the company managed an area of 431 million square meters, a year-on-year increase of 7.4%, with a significant portion of projects coming from related parties [8][68]. - The company signed new contracts covering an area of 74.1 million square meters in 2024, with a contract value of HKD 4.44 billion, reflecting a 21.6% increase in average contract price [8]. Diversification of Services - The company has diversified its value-added services, with household value-added services growing at a CAGR of 28.6% from 2019 to 2024 [9]. - Non-household value-added services have faced challenges due to a downturn in real estate sales, but the company plans to focus on engineering services for future growth [9]. Dividend Policy - The company has maintained a stable dividend payout ratio, increasing to 35.8% in 2024, although this remains lower compared to mainstream property companies [54][56].
中海物业（02669）：港股公司首次覆盖报告：规模盈利双升，高质量外拓构筑长期价值