Core Viewpoint - The report maintains the profit forecast for Poly Property (06049), expecting a 5% year-on-year growth in net profit attributable to shareholders for 2025-26, reaching 1.55 billion and 1.62 billion yuan respectively. The target price is raised by 11% to HKD 42.7, corresponding to a target P/E ratio of 14 times for 2025 and a 14% upside potential. The stock is currently trading at 12 times the 2025 P/E ratio [1] Group 1: Revenue and Profit Growth - The basic property management business drives overall growth, with this segment accounting for 70-80% of total revenue, growing by 13% year-on-year, establishing the main growth trend. The segment's gross profit margin remains relatively stable [2] - The company reported a revenue of 8.4 billion yuan for 1H25, a 7% year-on-year increase, and a net profit of 890 million yuan, also a 5% year-on-year increase, in line with expectations [1] Group 2: Contract Expansion and Project Structure - The new third-party project contract amount increased by 17% year-on-year to 1.4 billion yuan, with growth in residential, public service, and commercial office sectors. The contract amount in core 50 cities increased its proportion by 5 percentage points to 85% [3] - The proportion of non-residential projects in the new contracts has risen to nearly 80%, with the share of contracts worth over 10 million and 20 million yuan in the public service sector further increasing [3] Group 3: Accounts Management and Cash Flow - As of the end of 1H25, trade receivables grew by 10% year-on-year, with over 90% of the amounts due within one year, maintaining a healthy aging structure. The overall collection rate remained stable [4] - The public service business's collection rate has shown an upward trend, while the residential and commercial office sectors have seen a decline [4] Group 4: High-Quality Development and Shareholder Returns - The company is expected to maintain its competitive advantage in core sectors, driving overall revenue growth through high-quality project expansion and conversion, while also focusing on internal efficiency and maintaining stable profit margins [5] - The management has set a target of 3 billion yuan for annual saturated contract expansion and aims to keep the annual revenue and net profit targets unchanged. The dividend payout ratio has increased from 20% in 2021 to 50% in 2024, with expectations for continued shareholder return policies [5]

Core Insights - Jinmao Services (HK:00816) reported a strong performance for the first half of 2025, with revenue reaching 1.783 billion yuan, a year-on-year increase of 19.6% [1] - The company achieved a gross profit of 402 million yuan, reflecting a 9.6% increase compared to the previous year, indicating robust operational resilience and high-quality development [1] - Net profit for the period was 184 million yuan, showcasing the company's enhanced profitability alongside revenue growth [1] Revenue Breakdown - The core property management business generated a gross profit of 210 million yuan, marking a 16% year-on-year growth, underscoring the stability of its primary operations [1] - Non-cyclical business segments performed exceptionally well, with revenue reaching 1.637 billion yuan, a significant increase of 24.5% year-on-year, positioning it as a new growth engine for the company [1]