Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported a revenue of 8.5 billion yuan for H1 2025, representing a year-on-year increase of 6.5%, with a net profit attributable to shareholders of 2.03 billion yuan, up 7.4% year-on-year [1] - The shopping center operations showed strong performance, with a gross profit margin increase to 78.7%, up 6.2 percentage points year-on-year, driven by a retail sales growth of 21.1% [2] - The property management segment experienced stable growth, with property management revenue increasing by 8.8% to 3.5 billion yuan, despite a decline in value-added services [3] - The company declared an interim and special dividend totaling 0.881 yuan per share, representing a generous payout ratio of 100% of core net profit attributable to shareholders [3] Summary by Sections Financial Performance - For H1 2025, the company achieved a revenue of 8.5 billion yuan, with a gross profit of 3.17 billion yuan and a gross margin of 37.1%, which is an increase of 3.1 percentage points year-on-year [1] - The company’s operating profit grew by 20.2% to 2.63 billion yuan [3] Business Segments - The commercial segment generated revenue of 3.27 billion yuan, up 14.6% year-on-year, while the property segment's revenue was 5.16 billion yuan, a modest increase of 1.1% [1] - The shopping center business achieved a revenue of 2.26 billion yuan, reflecting a growth of 19.8% year-on-year, with a gross profit of 1.78 billion yuan, up 30.0% [2] Future Outlook - The company forecasts net profits attributable to shareholders of 3.99 billion yuan, 4.46 billion yuan, and 5.00 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 22, 19, and 17 [4][5]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 48.50, representing a potential upside of 15.0% from the current price of HKD 42.24 [2][4]. Core Insights - The company has solidified its leading position in the commercial management sector, with a significant increase in operational efficiency and a high dividend payout ratio [4]. - The commercial management segment reported a revenue increase of 14.6% year-on-year, with a gross margin improvement of 5.2 percentage points to 66.1% [4]. - The property management segment has seen a slight revenue growth of 1.1%, with urban space revenue increasing by 15.1% [4]. - The company has achieved a core net profit growth of 15.0% in the first half of 2025, with a total revenue of HKD 85.24 billion, reflecting a year-on-year increase of 6.5% [4]. Financial Summary - Revenue projections for the company are as follows: - 2023A: 14,766,952 thousand RMB - 2024A: 17,042,658 thousand RMB - 2025E: 18,326,302 thousand RMB - 2026E: 20,224,277 thousand RMB - 2027E: 22,407,889 thousand RMB - The growth rates are 22.9%, 15.4%, 7.5%, 10.4%, and 10.8% respectively [3][5]. - The projected net profit for the years 2025 to 2027 is as follows: - 2025E: 3,998,766 thousand RMB - 2026E: 4,596,336 thousand RMB - 2027E: 5,259,012 thousand RMB - The growth rates are 10.2%, 14.9%, and 14.4% respectively [3][5]. - The company plans to distribute a mid-term dividend of HKD 0.53 per share and a special dividend of HKD 0.35 per share, achieving a mid-term payout ratio of 100% based on core net profit [4].

Core Viewpoint - The company is projected to achieve a revenue increase of 15% year-on-year in 2024, with a net profit growth of 24% [2] Group 1: Financial Performance - The company expects to generate revenue of 17 billion yuan in 2024, reflecting a year-on-year increase of 15.4%. The commercial segment is anticipated to contribute 6.27 billion yuan, up 21.4%, while the property segment is expected to generate 10.72 billion yuan, an 11.6% increase [2] - The gross profit is projected to reach 5.61 billion yuan, representing a 19.5% increase, with a gross margin of 32.9%, up 1.1 percentage points year-on-year. The net profit attributable to shareholders is expected to be 3.63 billion yuan, a 23.9% increase [2] Group 2: Operational Highlights - The company has achieved outstanding performance in shopping center operations, with the number of managed shopping centers reaching a five-year high of 118, an increase of 20 centers from the previous year. The retail sales of managed shopping centers are projected to be 215 billion yuan, up 18.7%, with rental income from owners at 26.2 billion yuan, a 19.2% increase [3] - The operating profit margin for owners is expected to be 65.1%, an increase of 0.4 percentage points year-on-year. The shopping center-related business segment is projected to generate revenue of 4.21 billion yuan, a 30% increase, contributing 24.7% to total revenue [3] Group 3: Expansion and Services - The company is expanding its urban services segment, managing 1,385 residential projects with a total area of 270 million square meters, of which 55.6% comes from projects delivered by China Resources Land. Revenue from residential property management is expected to be significantly supported by high-quality projects from this partner [4] - The urban services segment, which includes traditional property management services and value-added services, is projected to generate 1.82 billion yuan in revenue, a 36.3% increase, accounting for 10.7% of total revenue [4] Group 4: Employee and Dividend Insights - The total number of employees is expected to reach 42,046 by the end of 2024, an increase of 1,069 from the previous year. The average revenue per employee is projected to grow by 12.5%, while average profit per employee is expected to increase by 20.8% [7] - The total dividend payout for 2024 is projected to be 4.8 billion yuan, resulting in a dividend yield of 6.7% based on the closing price on April 1, 2025, indicating strong attractiveness for investors [7]