According to Futu News on May 16,$HOLLWIN URBAN (02529.HK)$Today's dark market opened higher, closing up 10.31% to HK$3.53, with a turnover of HK$1.89,600, with a total market value of HK$565 million; 1,000 shares per lot, without handling fees, earned HK$330 per lot.

Market Source: Futu Securities Securities>

Investment highlights

Stable strategic business relationship: The company maintains a strong and continuous business relationship with Chengfa Group and its contacts, and its diversified property portfolio provides the company with a large pool of potential high-quality projects. As of the last practical date, Chengfa Group has 10 real estate projects under construction or development, with a total construction area of 2.7 million square meters, and a total land reserve of about 18.3 million square meters for future development; as long as the company complies with relevant laws and regulations (such as the requirements of tender procedures under applicable laws and regulations in China) and other standards, it will continue to grant projects to the company. The company's long-term relationships with Chengfa Group and its contacts have driven the company's development and laid a solid foundation for the company's continued growth. During the track record period, the total revenue received by the company from Chengfa Group and its contacts (as customers) was RMB 182.9 million, RMB 234.7 million and approximately RMB 290 million respectively, accounting for 42.4% 44.4% and 44.4% of the company's total revenue, respectively.

Excellent performance: From 2021 to 2023, the company's revenue increased at a compound annual growth rate of 22.9% from RMB 431.7 million in 2021 to RMB 528.5 million in 2022, and further increased to RMB 651.9 billion in 2023. In 2021, 2022 and 2023, the company's total annual profit and overall revenue were RMB 40.8 million, RMB 53.6 million and RMB 70.2 million respectively, with a compound annual growth rate of 31.1% from 2021 to 2023. In 2022 and 2023, the company's overall gross margin remained stable at 23.0% and 23.3%, respectively.

Risk warning

During the track record period, most of the company's revenue came from operations in Changsha, Hunan Province. In the near future, the city of Changsha will still account for most of the company's operations. Due to this concentration, any change in provincial government policies or business environment may have a negative impact on the company's business, financial situation, and operating performance.

Most of the company's projects during the track record period came from Chengfa Group and its contacts, as well as the local government of Changsha City and its affiliated entities, public institutions and other state-owned enterprises. The company has no control over the business strategies of Chengfa Group and its affiliates or macroeconomic or other factors that may affect their business operations. Any adverse developments operated by CGD and its contacts or their ability to develop new projects may affect the company's ability to obtain new service contracts.

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