Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company's revenue and net profit have slightly declined, with a year-on-year revenue decrease of 4.39% to 2.821 billion yuan and a net profit decrease of 7.69% to 940 million yuan as of Q3 2025, primarily due to lower average rents and occupancy rates in office buildings and shopping malls [1][2]. - Despite the pressure on rental income and occupancy rates, the company's performance remains better than the overall market in Beijing [2]. - The hotel industry is facing operational pressures, but recent government guidelines aimed at promoting high-quality development in the accommodation sector may provide a positive outlook for recovery [3]. Summary by Sections Revenue and Profitability - As of Q3 2025, the company achieved a revenue of 28.21 billion yuan, down 4.39% year-on-year, and a net profit of 9.40 billion yuan, down 7.69% year-on-year [1]. - The increase in marketing and management expenses contributed to the decline in net profit, with sales expenses rising by 7.15% and management expenses by 2.11% [1]. Rental Performance - The average rents for the company's office buildings, shopping malls, and apartments as of Q3 2025 were 613 yuan, 1308 yuan, and 363 yuan per square meter per month, respectively, showing declines of 4.96%, 2.02%, and 1.09% compared to the same period in 2024 [2]. - The average occupancy rates for these properties were 92.3%, 95.5%, and 90.4%, with slight declines in office and shopping mall occupancy rates, while apartment occupancy increased by 1.1 percentage points [2]. Future Projections - The company is expected to achieve revenues of 39.36 billion yuan, 40.07 billion yuan, and 40.90 billion yuan for the years 2025 to 2027, reflecting growth rates of 0.6%, 1.8%, and 2.1% respectively [4]. - The projected net profits for the same period are 12.90 billion yuan, 13.47 billion yuan, and 14.04 billion yuan, with growth rates of 2.2%, 4.4%, and 4.3% respectively [4].

Core Viewpoint - China International Trade Center (CITC) is a leading player in the commercial real estate sector, focusing on high-end office buildings and shopping malls, leveraging its prime location and luxury positioning for competitive differentiation [1] Business Performance - In Q3 2025, CITC achieved a revenue of 2.821 billion yuan, ranking 7th in the industry, significantly lower than the top player, China Merchants Shekou, which reported 89.766 billion yuan [2] - The main business revenue composition includes property leasing and management income of 1.652 billion yuan (87.41%) and hotel operation income of 238 million yuan (12.59%) [2] - The net profit for the same period was 941 million yuan, placing CITC 4th in the industry, again lower than the leading companies [2] Financial Health - As of Q3 2025, CITC's debt-to-asset ratio was 17.54%, down from 22.35% year-on-year, significantly lower than the industry average of 68.96%, indicating strong debt repayment capability [3] - The gross profit margin was 59.13%, slightly down from 60.51% year-on-year but still well above the industry average of 22.73%, reflecting robust profitability [3] Management and Shareholder Structure - The total compensation for General Manager Zhi Luxun increased to 4.44 million yuan in 2024, up by 420,000 yuan from 2023 [4] - As of September 30, 2025, the number of A-share shareholders decreased by 4.71% to 15,600, while the average number of circulating A-shares held per shareholder increased by 4.94% to 64,700 [5] Operational Insights - According to Southwest Securities, CITC's H1 2025 performance faced pressure but showed stable operations, with office business revenue of 730 million yuan and an average occupancy rate of 92.4% [6] - The shopping mall business generated 640 million yuan with a high occupancy rate of 95.3%, supported by its luxury positioning and prime location [6] - Hotel business showed a noticeable decline, while the apartment business remained stable [6] Future Projections - Estimates suggest that CITC's net profit attributable to shareholders will reach 1.3 billion yuan in 2025, with slight growth in subsequent years [6] - Guotai Junan Securities projects EPS for 2025 and 2026 to be 1.29 yuan and 1.34 yuan, respectively, with a target price of 25.78 yuan based on a 20X PE ratio [6]

Core Viewpoint - China International Trade Center Co., Ltd. has experienced a decline in stock price and revenue, indicating potential challenges in its business operations and market performance [2][3]. Company Overview - China International Trade Center Co., Ltd. was established on October 15, 1997, and listed on March 12, 1999. The company is located at 1 Jianguomenwai Avenue, Chaoyang District, Beijing [2]. - The main business activities include investment, operation, and management of commercial service facilities, such as high-end office buildings, shopping malls, and hotels. The revenue composition is 87.41% from property leasing and management, and 12.59% from hotel operations [2]. Financial Performance - As of June 30, 2025, the company reported a revenue of 1.89 billion yuan, a year-on-year decrease of 3.85%, and a net profit attributable to shareholders of 632 million yuan, down 8.02% year-on-year [2]. - The stock price has decreased by 10.32% year-to-date and 2.96% over the last five trading days, while it has seen a slight increase of 0.58% over the last 20 days and 2.10% over the last 60 days [2]. Shareholder Information - As of June 30, 2025, the number of shareholders increased by 5.88% to 16,300, with an average of 61,611 shares held per shareholder, a decrease of 5.55% [2]. - The company has distributed a total of 7.853 billion yuan in dividends since its A-share listing, with 3.123 billion yuan distributed in the last three years [3]. Institutional Holdings - Among the top ten circulating shareholders, Hongli Low Volatility (512890) is the third-largest with 12.5044 million shares, an increase of 2.0738 million shares from the previous period. Hong Kong Central Clearing Limited is the seventh-largest with 7.6645 million shares, a decrease of 3.1373 million shares [3]. - New entrants among the top ten shareholders include Southern CSI 500 ETF (510500) with 2.9637 million shares and Southern CSI Real Estate ETF Initiated Link A (004642) with 2.5726 million shares [3].

Group 1 - The core stock price of China International Trade reached 20.64 yuan as of August 15, 2025, with an increase of 0.19 yuan, representing a rise of 0.93% from the previous trading day [1] - The trading volume on that day was 25,773 hands, with a total transaction amount of 0.53 billion yuan [1] - China International Trade primarily engages in commercial real estate development and operation in Beijing's core business district, holding high-quality commercial assets in the CBD area, including office buildings, shopping malls, and hotels [1] Group 2 - A research report indicates that China International Trade possesses a leading advantage in the Beijing market, with stable revenue from its core business management and a year-on-year increase in net profit attributable to the parent company [1] - The report also highlights potential risks, such as insufficient consumer demand for held assets [1] - On August 15, the net outflow of main funds for China International Trade was 2.9275 million yuan, with a cumulative net outflow of 2.0125 million yuan over the past five days [1]

Group 1 - The core viewpoint of the article highlights the unique advantages of China International Trade Center's asset positioning and stable shareholder structure [1] - The China International Trade Center is located between the East Second and Third Ring Roads in Beijing, serving as a landmark complex and the largest, most comprehensive business service facility in China and globally [1] - The core commercial management business of the company has stable revenue, with a leading advantage in the Beijing market [1] Group 2 - The company holds high-quality assets in Beijing's core areas, including shopping malls, office buildings, apartments, and hotels, which have shown relatively stable revenue and profit contributions in recent years [1] - The report initiates coverage of the company with a "recommended" rating [1]

Core Viewpoint - The report on China International Trade Center (600007) highlights its strong asset base in Beijing's CBD, stable shareholder structure, and consistent revenue generation across its core business segments, leading to a "buy" rating for the stock [1][2]. Group 1: Asset and Shareholder Structure - China International Trade Center is located between Beijing's East Second and Third Ring Roads, making it a landmark and one of the largest comprehensive business service facilities globally, comprising office buildings, shopping malls, hotels, and apartments [2]. - The controlling shareholder, China International Trade Center Co., Ltd., holds an 80.65% stake as of Q1 2025, with its shareholders being China Shimao Investment Co., Ltd. and Kerry Properties Limited, each holding 50% [2]. Group 2: Revenue Stability and Market Position - The company operates four Grade A office buildings with a rental rate of 627 RMB/㎡/month as of Q1 2025, showing a gradual increase from 2021 to 2024, while the overall rental market in Beijing is expected to decline by 23.7% in 2024 compared to 2023 [3]. - The occupancy rate of the company's office buildings stands at 92.7%, outperforming Beijing's overall rate of 87.4% as of December 2024 [3]. - The Guomao Mall, opened in 1990, recorded a footfall of 25.9 million in 2024, ranking first in Beijing and fifth nationally, with sales of 19.1 billion RMB [3]. - The company's apartment segment achieved a revenue of 187 million RMB in 2024, marking a 2.02% increase year-on-year [3]. - Hotel operations generated 526 million RMB in revenue, reflecting a 7.59% decline due to macroeconomic factors and geopolitical uncertainties [3]. Group 3: Financial Performance - For the year ending 2024, the company reported revenues of 3.912 billion RMB, a slight decrease of 1.05%, and a net profit of 1.262 billion RMB, an increase of 0.25% [4]. - The company's interest-bearing debt decreased by 31.11% to 1.085 billion RMB compared to 1.575 billion RMB in 2023, with all debt being bank loans [4]. - The dividend payout ratio reached 87.77% with a dividend yield of 6.54%, indicating a trend of increasing shareholder returns [4]. Group 4: Future Projections - Revenue projections for 2025-2027 are estimated at 3.936 billion RMB, 4.007 billion RMB, and 4.090 billion RMB, respectively, with net profits expected to be 1.280 billion RMB, 1.331 billion RMB, and 1.388 billion RMB [4]. - The corresponding price-to-earnings (PE) ratios are projected to be 16, 15, and 15 for the years 2025, 2026, and 2027 [4]. Group 5: Analyst Ratings - In the last 90 days, four institutions have rated the stock, with three giving a "buy" rating and one an "accumulate" rating, while the average target price among institutions is 26.56 RMB [6].

Investment Rating - The report assigns an "Outperform" rating for the company [6] Core Views - The company operates high-quality commercial real estate in Beijing, demonstrating stable profitability through economic cycles [1][4] - Despite the overall downturn in the real estate development sector, the company's performance in property management remains relatively stable [16][19] - The company has a strong asset base with a healthy financial structure, allowing for consistent shareholder returns [3][4] Summary by Sections Company Overview - The company is based in the Beijing CBD and has developed the China International Trade Center over 40 years, covering an area of 170,000 square meters with a total construction area of 1.12 million square meters [1][34] - The controlling shareholder maintains an 80.65% stake, ensuring stability in ownership [1][38] Main Business - The company focuses on leasing and managing investment properties, including office buildings, shopping malls, hotels, and apartments [46][47] - The revenue breakdown for 2024 is projected at 3.9 billion yuan, with contributions from office buildings (39%), shopping malls (33%), hotels (13%), and other businesses [50] Financial Performance - The company has shown steady revenue and profit growth since 2019, with a projected net profit of 1.26 billion yuan for 2024, reflecting a 0.3% year-on-year increase [3][5] - The gross margin is expected to be 58.1%, and the net profit margin is projected at 32.3%, both improving since 2019 [3][5] Profitability and Valuation - The company is expected to maintain a stable profit scale and a strong dividend policy, with a payout ratio increasing from 39% in 2019 to 88% in 2024 [3][4] - The estimated fair price range for the company's stock is between 22.9 and 26.8 yuan, indicating a potential upside of 5% to 23% from the current price [4][6] Market Position - The company's office buildings have maintained stable rental rates and occupancy rates, outperforming the overall market for Grade A office buildings in Beijing [66][70] - The shopping mall is positioned as a luxury retail destination, ranking fifth nationally in sales, benefiting from high-end brand presence and a strong location [81][94]