Core Viewpoint - The report highlights the performance of Shimao Group in the real estate sector, focusing on its sales figures and the growth of its non-cyclical business segments, while also addressing challenges related to accounts receivable impairment. Group 1: Sales Performance - In January and February 2026, Shimao Group achieved a total sales amount of 2.81 billion yuan, ranking 26th in the industry [4] - For the entire year of 2025, Shimao Group's total sales reached 23.95 billion yuan, placing it 33rd in the industry [4] Group 2: Business Structure and Non-Cyclical Growth - The company is continuously adjusting its business structure, with the proportion of non-cyclical business steadily increasing [5] - In the first half of 2025, the revenue from property management, community value-added services, non-owner value-added services, and urban services were 2.81 billion, 540 million, 60 million, and 210 million yuan respectively, showing year-on-year changes of +1.9%, -8.1%, -24.4%, and -65.6% [5] - The revenue from property management accounted for 77.7% of total revenue, an increase of 9.2 percentage points year-on-year, indicating enhanced resilience against cyclical fluctuations [5] Group 3: Third-Party Market Expansion - As of June 30, 2025, the company covered 123 cities and provided services for 1,466 projects, with a total managed area of 220 million square meters and a contracted area of 340 million square meters [6] - The annualized contract amount from third-party market expansion reached a record high of 960 million yuan, a 54.6% increase compared to 620 million yuan in the same period of 2024 [6] - The newly contracted area for non-residential projects was 33.4 million square meters, accounting for 83.3% of the new contracted area [6] Group 4: Profitability Challenges - In the first half of 2025, the company's gross profit was 710 million yuan, with net impairment losses on financial assets amounting to 240 million yuan and intangible asset impairment losses of 34.74 million yuan [8] - The financial asset impairment losses were primarily due to the impairment of third-party trade receivables, totaling 260 million yuan, while the impairment of related party trade receivables was 35.23 million yuan [8] - As of June 30, 2025, the net value of trade receivables was 3.64 billion yuan, an increase of 7.6% compared to the end of 2024, attributed to tightened cash flow among clients due to changes in the macroeconomic environment [8]

Core Viewpoint - The report highlights the performance of Shimao Group in the real estate sector, emphasizing its sales figures and the growth of its non-cyclical business segments, while also addressing challenges related to accounts receivable impairment. Group 1: Sales Performance - In January-February 2026, Shimao Group achieved a total sales amount of 2.81 billion yuan, ranking 26th in the industry [4] - For the entire year of 2025, Shimao Group's total sales amounted to 23.95 billion yuan, placing it 33rd in the industry [4] Group 2: Business Structure and Non-Cyclical Growth - The company is continuously adjusting its business structure, with the proportion of non-cyclical business steadily increasing [5] - In the first half of 2025, the revenue from property management, community value-added services, non-owner value-added services, and urban services were 2.81 billion, 540 million, 60 million, and 210 million yuan respectively, showing year-on-year changes of +1.9%, -8.1%, -24.4%, and -65.6% [5] - The revenue from property management accounted for 77.7% of total revenue, an increase of 9.2 percentage points year-on-year, indicating enhanced resilience against cyclical fluctuations [5] Group 3: Third-Party Market Expansion - As of June 30, 2025, the company covered 123 cities and provided services for 1,466 projects, with a total managed area of 220 million square meters and a contracted area of 340 million square meters [6] - The annualized contract amount from third-party market expansion reached a historical high of 960 million yuan, a 54.6% increase compared to 620 million yuan in the same period of 2024 [6] - The newly contracted area for non-residential projects was 33.4 million square meters, accounting for 83.3% of the new contracted area [6] Group 4: Profitability Challenges - In the first half of 2025, the company's gross profit was 710 million yuan, with net impairment losses on financial assets amounting to 240 million yuan and intangible asset impairment losses of 34.74 million yuan [8] - The financial asset impairment losses were primarily due to the impairment of third-party trade receivables, which amounted to 260 million yuan [8] - As of June 30, 2025, the net value of trade receivables was 3.64 billion yuan, a 7.6% increase compared to the end of 2024, attributed to tightened cash flow among clients due to macroeconomic changes [8]

Core Viewpoint - Everbright Securities maintains a "Buy" rating for Shimao Services (00873), citing the company's proactive expansion in third-party markets and a stable increase in the proportion of non-cyclical business, indicating a positive fundamental outlook. The forecast for net profit attributable to shareholders for 2025-2026 is set at 210 million and 340 million yuan, with a new estimate for 2027 at 380 million yuan, corresponding to P/E ratios of 6.5, 4.1, and 3.6 times, suggesting attractive valuation [1]. Recent Events - Shimao Group reported a total sales amount of 2.81 billion yuan for January-February 2026, ranking 26th in the industry according to CRIC's sales ranking. For the entire year of 2025, Shimao Group achieved total sales of 23.95 billion yuan, ranking 33rd in the industry [1]. Business Structure Adjustment - In the first half of 2025, the company generated revenues of 2.81 billion, 540 million, 60 million, and 210 million yuan from property management, community value-added services, non-owner value-added services, and urban services, respectively. The revenue share from property management increased by 9.2 percentage points year-on-year to 77.7%, enhancing the company's resilience against cyclical fluctuations. The stable gross margin during the revenue increase indicates a focus on refined operations and strict quality control of managed projects [2]. Third-Party Expansion - As of June 30, 2025, the company operates in 123 cities, providing a diverse range of services for 1,466 projects, including residential, public buildings, universities, industrial parks, and hospitals, with a managed area of 220 million square meters and a contracted area of 340 million square meters. In the first half of 2025, the company achieved a record high in third-party market expansion, with new annual contract amounts reaching 960 million yuan, a 54.6% increase compared to 620 million yuan in the same period of 2024. The newly added contracted area was 40.1 million square meters, up 126.6% from 17.7 million square meters in 2024, with non-residential project contracts accounting for 83.3% of the new contracted area [3].

Core Viewpoint - Everbright Securities maintains a "buy" rating for Shimao Services (00873), citing the company's active expansion in third-party markets and stable growth in non-cyclical business segments, with a positive outlook on fundamentals [1] Group 1: Recent Events - Shimao Group achieved a total sales amount of RMB 2.81 billion in January-February 2026, ranking 26th in the industry according to CRIC's sales ranking [1] - For the entire year of 2025, Shimao Group's total sales reached RMB 23.95 billion, ranking 33rd in the industry [1] Group 2: Business Structure Adjustment - In the first half of 2025, the company generated revenues of RMB 2.81 billion from property management, RMB 0.54 billion from community value-added services, RMB 0.06 billion from non-owner value-added services, and RMB 0.21 billion from urban services, with property management revenue accounting for 77.7%, up 9.2 percentage points year-on-year [2] - The stable gross margin in property management indicates the company's focus on refined operations and strict quality control of managed projects [2] Group 3: Third-Party Market Expansion - As of June 30, 2025, the company operates in 123 cities, providing services for 1,466 projects, covering various client types including residential, public buildings, universities, industrial parks, and hospitals, with a managed area of 220 million square meters and a contracted area of 340 million square meters [3] - In the first half of 2025, the company achieved a record high in third-party bidding with an annualized contract amount of RMB 0.96 billion, a 54.6% increase compared to RMB 0.62 billion in the same period of 2024 [3] - The newly contracted area of 40.1 million square meters in the first half of 2025 represents a 126.6% increase from 17.7 million square meters in the same period of 2024, with non-residential projects accounting for 83.3% of the new contracted area [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Insights - The company has shown a stable increase in the proportion of non-cyclical business, with a record high in third-party external expansion [2][3]. - The company’s property management revenue has increased, enhancing its ability to withstand cyclical fluctuations, with property management revenue accounting for 77.7% of total revenue, up by 9.2 percentage points year-on-year [2]. - The company has achieved a historical high in third-party contract amounts, with a year-on-year increase of 54.6% in new annual contracts, reaching RMB 9.6 billion [3]. - The company’s net profit forecasts for 2025 and 2026 have been revised down to RMB 2.1 billion and RMB 3.4 billion, respectively, due to adjustments in business operations and increased provisions for receivables [4]. Summary by Sections Business Performance - In the first half of 2025, the company generated revenues of RMB 28.1 million from property management, RMB 5.4 million from community value-added services, RMB 0.6 million from non-owner value-added services, and RMB 2.1 million from urban services, reflecting a mixed performance across segments [2]. Third-Party Expansion - As of June 30, 2025, the company operates in 123 cities, managing 1,466 projects with a total managed area of 220 million square meters and a contracted area of 340 million square meters [3]. - The company has focused on expanding its third-party market, achieving a significant increase in non-residential project contracts, which accounted for 83.3% of the new contracted area [3]. Financial Projections - The company’s revenue is projected to decline to RMB 7.272 billion in 2025, with a subsequent recovery expected in 2026 and 2027 [5]. - The earnings per share (EPS) is forecasted to be RMB 0.09 in 2025, increasing to RMB 0.14 in 2026 and RMB 0.16 in 2027 [5].