Gelonghui, April 15 | First Shanghai released a research report to give Xingsheng Commercial (6668.HK) a “buy” rating, giving it a price-earnings ratio of 10 times in 2024, corresponding to a target price of HK$2.0; optimistic about the company's ability to expand and operate as a pure commercial management company in the post-real estate cycle. The research report mentioned that in 2023, the company's revenue was 635 million yuan, up 13% year on year; gross profit was 334 million yuan, up 6.6% year on year; net profit to mother was 171 million yuan, up 10.9% year on year. With the end of the epidemic and the recovery of market consumption, the company's profitability continued to improve. Cash in hand at the end of the period was 1,437 billion yuan, an increase of 13% over the previous year, with sufficient cash on hand. The company raised its dividend payout ratio to 70%, with a dividend of HK13 cents per share, an increase of 23.8% over the previous year. According to the research report, the company focuses on the Greater Bay Area and Yangtze River Delta region, and has a national layout, adhering to its own circle of abilities, focusing on quality over weight, and creating a unique development model for the company. Specifically, 1) Xingsheng Commercial's ongoing projects have shown steady performance and sufficient reserves: As a leading commercial property operation service provider in the Greater Bay Area, the company had opened 27 retail commercial projects by the end of 23, covering an area of 1.65 million square meters, and 20 projects in preparation. Future development is certain. The overall occupancy rate in 2023 increased 0.3 percentage points year on year to 92.8%, and the collection rate increased 1.3 percentage points year on year to 99.8%; 2) Complete the annual target of new opening and insist on high-quality opening: the company opened 6 new projects throughout 2023 to complete the annual target. The new projects opened during the year were all cities or regions where the company first entered, including cities such as Xiamen, Guangzhou, and Jiangyin. Up to now, the company has a contract area of about 2.8 million square meters and a total of 55 projects, covering 21 cities across the country. The third area accounts for 48.9%.