Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company achieved a core operating profit growth of 25% year-on-year in the first half of 2025, indicating a clear trend of profit improvement [1] - Revenue for the first half of 2025 reached 9.3 billion yuan, a year-on-year increase of 6.1%, with a gross profit of 1.8 billion yuan, up 8.9% year-on-year [1] - The overall gross margin improved to 19.5%, an increase of 0.5 percentage points year-on-year, reflecting effective cost control and operational efficiency [3] Summary by Sections Main Business Performance - The company's revenue from property management, park services, and consulting services for the first half of 2025 was 6.63 billion, 1.36 billion, and 1.30 billion yuan respectively, showing a year-on-year growth of 10.2%, a decline of 6.0%, and an increase of 0.6% [2] - Property management accounted for 71.4% of total revenue, providing stable support for the company's performance [2] - The revenue from home life services within park services decreased by 53.8% due to the exclusion of a subsidiary from consolidation, but other segments showed positive growth [2] Expansion and Project Quality - The company focused on core regions for expansion, achieving a saturated revenue of 1.52 billion yuan from new property management projects, with non-residential projects making up 52.5% [2] - The average management fee for new projects was 3.7 yuan/month/㎡, indicating high project quality [2] - As of June 30, 2025, the total managed area reached 540 million square meters, with the Yangtze River Delta region accounting for 58.8% of the managed area and 69.7% of revenue [2] Profitability and Shareholder Returns - The overall gross margin for the first half of 2025 was 19.5%, with property management, park services, and consulting services gross margins at 15.3%, 26.6%, and 33.1% respectively [3] - The management expense ratio decreased to 6.4%, down 1.0 percentage points year-on-year, contributing to the profit improvement trend [3] - The company repurchased 17.17 million shares, representing 0.5% of the issued shares, and has a high historical dividend payout ratio [3] Profit Forecast and Valuation - The company is projected to achieve net profits of 940 million, 1.1 billion, and 1.2 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 16, 13, and 12 times [4][3] - The report emphasizes the company's strong brand reputation and competitive edge in new project expansion, highlighting the gradual improvement in profitability [3]