Core Viewpoint - CICC has downgraded the profit forecasts for China Overseas Property (02669) for 2025 and 2026 by 5% and 6% to CNY 1.6 billion and CNY 1.71 billion, respectively, reflecting a year-on-year growth of 6% and 7% [1] Group 1: Financial Performance - The company's 1H25 performance slightly missed market expectations, with revenue increasing by 4% to CNY 7.09 billion and net profit attributable to shareholders also rising by 4% to CNY 770 million [2] - The interim dividend per share is set at HKD 0.1, with a payout ratio of 40%, up from 36% in 2024 and 35% in 1H24 [2] Group 2: Business Development - The company achieved a stable external expansion with a total annual contract value of approximately CNY 980 million in 1H25, maintaining a similar level to the previous year, with over 60% from urban operations [3] - The average annual contract value for projects worth over CNY 10 million increased by 17%, indicating a steady improvement in external quality [3] Group 3: Value-Added Services - Overall, value-added services faced pressure, with household and non-household service revenues declining, particularly a 12% drop in household value-added service revenue to CNY 610 million [4] - Community asset operation services within household value-added services saw a 6% increase, while home life services and commercial operations dropped by 26% [4] - Engineering services maintained double-digit growth despite challenges in related pre-delivery inspection services [4] Group 4: Financial Management - The comprehensive collection rate showed slight improvement in 1H25, with current collection rates increasing year-on-year, while prior collection rates saw a minor decline [5] - Trade receivables grew by 1% year-on-year, which is lower than the revenue growth rate for the same period [5] Group 5: Future Outlook - The company anticipates a stable operational trend in the second half of the year, with potential slight improvements due to reduced pressure from project withdrawals and increased focus on asset operation services [6]