Core Viewpoint - The performance of Midea Real Estate in the first half of 2025 meets market expectations, with significant revenue and profit growth driven by development services and property management [1][2]. Financial Performance - Revenue for 1H25 increased by 41% year-on-year to 1.997 billion yuan, with a slight decline in gross margin by 3 percentage points to 30.8% [1]. - Core net profit attributable to the parent company rose by 119.4% year-on-year to 312 million yuan, aligning with market expectations [1]. - The company declared an interim dividend of 0.15 HKD per share, corresponding to a current dividend yield of 3.2% [1]. Business Segments - Development services contributed significantly, with revenue of 505 million yuan and operating profit of 162 million yuan, a new addition compared to the previous year [1]. - Property management and asset operation showed steady growth, with property management revenue increasing by 9% year-on-year to 930 million yuan, and asset operation revenue rising by 14% to 275 million yuan [2]. - The real estate technology business faced challenges, with revenue declining by 9% year-on-year to 287 million yuan, primarily due to industry pressures [2]. Growth Outlook - The company aims to enhance its core competitiveness by deepening its presence in the real estate development value chain, expecting development services to achieve approximately 1 billion yuan in revenue for the full year of 2025 [2]. - Property service revenue growth is projected to maintain a rate of 8-10%, with an overall performance growth forecast of around 20% for 2025 [2]. Shareholder Returns - The company plans to maintain a competitive dividend policy, continuing its practice of semi-annual dividends, which supports shareholder returns [3]. - The profit forecast remains largely unchanged, with core net profit expected to grow by 19% and 13% year-on-year for 2025 and 2026, reaching 601 million yuan and 682 million yuan, respectively [3]. Valuation - The target price has been raised by 36% to 5.8 HKD per share, reflecting a 5.5% target dividend yield for 2025 and a 23% upside potential [3].

Core Viewpoint - The company maintains its profit forecast for Midea Real Estate (03990), expecting a year-on-year growth of 19% and 13% in core net profit attributable to shareholders for 2025-26, reaching 601 million and 682 million respectively, and raises the target price by 36% to HKD 5.8 per share, indicating a 5.5% dividend yield for 2025 and a 23% upside potential [1] Group 1 - Midea Real Estate's 1H25 performance meets market expectations, with revenue increasing by 41% to 1.997 billion, and core net profit rising by 119.4% to 312 million [2] - The company reported development service revenue of 505 million and operating profit of 162 million in 1H25, supporting significant growth in revenue and profit [3] - The property management and asset operation businesses showed steady growth, with property management revenue increasing by 9% to 930 million, while asset operation revenue rose by 14% to 275 million [4] Group 2 - The company is focused on enhancing its core competitiveness by deepening its layout in the real estate development industry chain, expecting development service revenue to reach approximately 1 billion for the full year of 2025 [5] - The company plans to maintain a competitive dividend policy, continuing its practice of semi-annual dividends, which is expected to provide a solid foundation for shareholder returns [6]

Core Viewpoint - CICC maintains its profit forecast for Midea Real Estate (03990), expecting a year-on-year growth of 19% and 13% in core net profit attributable to the parent company for 2025-26, reaching 601 million and 682 million respectively, while raising the target price by 36% to HKD 5.8 per share, corresponding to a 5.5% dividend yield for 2025 and a 23% upside potential [1] Group 1 - Midea Real Estate's 1H25 performance met market expectations, with revenue increasing by 41% to 1.997 billion, and core net profit attributable to the parent company rising by 119.4% to 312 million [2] - The inclusion of development services in the interim report significantly supported revenue and profit growth, with development service revenue of 505 million and operating profit of 162 million recorded in 1H25 [3] - The company expanded its property management and asset operation businesses, with property management revenue increasing by 9% to 930 million, while asset operation revenue rose by 14% to 275 million [4] Group 2 - The company is committed to enhancing its core competitiveness by deepening its layout in the real estate development industry chain, expecting development service revenue to reach approximately 1 billion for the full year of 2025 [5] - Midea Real Estate plans to maintain a competitive dividend policy, continuing its practice of semi-annual dividends, which is expected to provide a solid foundation for shareholder returns [6]

Core Viewpoint - Midea Real Estate is focusing on transforming its business model to adapt to new market demands and opportunities in the real estate industry, emphasizing a combination of light and heavy asset operations [1][2][3] Financial Performance - In the first half of the year, Midea Real Estate reported revenue of 1.996 billion yuan, a year-on-year increase of 41.3% [1] - The profit attributable to the owners from continuing operations was 310 million yuan, up 119% year-on-year [1] - The company has a healthy asset structure with a net cash flow of 440 million yuan and no interest-bearing debt, with total cash of 1.27 billion yuan [1] - A mid-term dividend of 0.15 HKD per share is proposed [1] Revenue Structure - Property management services remain the main contributor to Midea Real Estate's profits and cash flow, generating revenue of 930 million yuan, a year-on-year increase of 8.7% [1] - The contracted area for property management services is 96.06 million square meters, with managed area increasing to 79.46 million square meters, a growth of 5% compared to the end of the previous year [1] Development Services - The development services segment generated revenue of 505 million yuan, with four external projects initiated [2] - The project "Dongwangfu" in Wuxi achieved over 90% sales rate, exceeding expectations in both pricing and sales [2] Strategic Direction - The company aims to build a differentiated product path, emphasizing modern industrial aesthetics and high-quality materials [2] - Midea Real Estate plans to enhance community value-added services and improve professional service capabilities without pursuing blind expansion [2] - The strategic direction for the next 3-5 years includes deepening the layout of the real estate industry value chain and maintaining a performance growth rate of around 20% by 2025 [3]