Investment Rating - The report maintains a "Buy" rating for the company [4][6] Core Views - The company achieved a robust growth in core net profit, with a 100% distribution of core net profit. For the first half of 2025, the company reported revenue of 8.52 billion RMB, a year-on-year increase of 6.5%, and a net profit attributable to shareholders of 2.03 billion RMB, up 7.4%. The core net profit reached 2.01 billion RMB, reflecting a 15% increase, indicating that the growth rate of core net profit outpaced revenue growth due to a 3.1 percentage point increase in gross margin to 37.1% [1][4] Summary by Sections Commercial Channel - The company solidified its leading position in shopping centers, with retail sales growth outpacing the overall retail sales growth. In the first half of 2025, the company opened 4 new shopping centers and signed 6 new light-asset projects, increasing the number of operational shopping centers to 125. The retail sales from operational shopping centers reached 122 billion RMB, a year-on-year increase of 21.1%, significantly surpassing the overall retail sales growth of 5% [2] Property Channel - Urban space revenue grew rapidly, while community space revenue slightly declined due to value-added service revenue. In the first half of 2025, community space services generated revenue of 4.21 billion RMB, a decrease of 1.6%. The revenue from property management services increased by 8.8% to 3.5 billion RMB, while non-owner value-added services saw a decline due to reduced project deliveries and lower service prices [3] Financial Projections - The company is projected to achieve revenues of 19.19 billion RMB, 21.21 billion RMB, and 23.26 billion RMB for the years 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is expected to be 4.17 billion RMB, 4.74 billion RMB, and 5.29 billion RMB for the same years. The earnings per share (EPS) are forecasted to be 1.83 RMB, 2.07 RMB, and 2.32 RMB, with corresponding price-to-earnings (P/E) ratios of 18.7, 16.5, and 14.7 [4][5]

Core Viewpoint - The company maintains a "buy" rating due to continuous improvement in profitability, steady growth in managed area, and effective operational efficiency in both property management and commercial management sectors [1][2]. Financial Performance - The company reported a revenue of 8.524 billion yuan for H1 2025, representing a year-on-year increase of 6.5% [2]. - The net profit attributable to shareholders reached 2.030 billion yuan, up 7.4% year-on-year, while the core net profit increased by 15.0% to 2.011 billion yuan [2]. - The gross margin improved by 3.1 percentage points to 37.1%, and the operating expense ratio decreased by 0.6 percentage points to 6.3% [2]. Dividend Distribution - The company declared a mid-year dividend of 0.529 yuan per share, an increase of 89.6% year-on-year, and for the first time, 100% of the core net profit was distributed [2]. Property Management Sector - Revenue from property management reached 3.501 billion yuan, a year-on-year increase of 8.8%, with a gross margin of 16.6% [2]. - The total managed area was 276 million square meters, with a 55.6% share from related parties [2]. - Non-owner value-added services saw a revenue decline of 34.6% to 220 million yuan, while owner value-added services decreased by 32.7% to 487 million yuan [2]. Commercial Management Sector - Revenue from shopping centers was 2.264 billion yuan, up 19.8%, with a gross margin of 78.7% [3]. - The average occupancy rate for shopping centers improved to 97.1%, with a year-on-year increase of 0.4 percentage points [3]. - Office buildings generated revenue of 2.065 billion yuan, a 7.1% increase, with an occupancy rate of 74.1% [3].

Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of HKD 45.26, compared to the current price of HKD 37.84 [5][9]. Core Insights - The company achieved a revenue of HKD 8.524 billion in the first half of 2025, representing a year-on-year growth of 6.5%. The net profit attributable to shareholders was HKD 2.03 billion, up 7.4% year-on-year, while the core net profit attributable to shareholders increased by 15% to HKD 2.011 billion [2][9]. - The shopping center business continues to show strong growth, with retail sales increasing by 21% year-on-year. The average occupancy rate for operational projects reached 97.1%, an increase of 0.4 percentage points from the end of 2024 [9][10]. - The company has declared an interim dividend of HKD 0.529 per share, a year-on-year increase of 89.6%, with a total dividend of HKD 0.881 per share, reflecting a growth of 216% compared to the same period last year [9][10]. Financial Performance Summary - The company’s total revenue is projected to grow from HKD 17.043 billion in 2024 to HKD 23.064 billion by 2027, with a compound annual growth rate (CAGR) of approximately 12% [4][10]. - The net profit attributable to shareholders is expected to rise from HKD 3.629 billion in 2024 to HKD 5.622 billion in 2027, with a CAGR of 15% [4][10]. - Earnings per share (EPS) are forecasted to increase from HKD 1.59 in 2024 to HKD 2.46 in 2027, indicating a strong growth trajectory [4][10]. Business Segment Performance - Revenue from the shopping center segment reached HKD 2.26 billion, growing by 19.8% year-on-year, while office and property management segments saw revenues of HKD 1 billion and HKD 5.16 billion, respectively [9][10]. - The gross margin for the shopping center segment improved to 78.7%, while the property management segment experienced a slight decline in gross margin to 18.8% [9][10]. Dividend Policy - The company has adopted a policy of distributing 100% of its core net profit as dividends, reflecting a commitment to returning value to shareholders [9][10].