Investment Rating - The report maintains a "Buy" rating with a target price of HKD 2.05 [1][32]. Core Views - The company has shown steady revenue growth, achieving an annual revenue of HKD 635 million in 2023, a year-on-year increase of 13.0%, and a net profit attributable to the parent company of HKD 171 million, up 10.9% year-on-year [26]. - The report indicates a downward adjustment in revenue growth and gross margin forecasts for 2024-2025, with EPS estimates revised to HKD 0.17 and HKD 0.19 for 2024 and 2025 respectively, down from previous estimates of HKD 0.22 and HKD 0.27 [1][26]. - The company has successfully opened six high-quality projects in 2023, contributing to a 6.5% increase in management revenue, which accounted for 64% of total revenue [26]. Financial Summary - The company reported a revenue of HKD 635 million in 2023, with a gross margin of 52.5%, down 3.2 percentage points from the previous year [27]. - The net profit margin for 2023 was 26.9%, with a return on equity (ROE) of 13.6% [27]. - The company’s projected revenue for 2024 is HKD 702 million, with an expected growth rate of 10.5% [27]. - The company’s earnings per share (EPS) for 2024 is projected to be HKD 0.17, with a price-to-earnings (P/E) ratio of 7.4 times [27]. Business Performance - The company operates 27 retail commercial properties with a total area of approximately 1.65 million square meters, and has 20 projects in preparation, providing a solid foundation for future growth [26]. - Same-store sales increased by 18% and customer traffic grew by 39% in 2023, indicating strong operational performance [26]. - The company is well-positioned in the Greater Bay Area, with a focus on high-quality project development, supported by its parent company, Xinghe Holdings [26].
星盛商业：收入业绩稳健增长，做优存量做实增量穿越周期