Jingu Financial News | Everbright Securities issued a research report stating that cg services (06098) sold 1.49% equity interest in Zhuhai Wanda on September 25th (107,945,650 shares), for approximately RMB 3.14 billion (the shares were purchased in July 2021 with an initial purchase price of RMB 2.68 billion). After the sale, cg services still holds 0.31% equity interest in Zhuhai Wanda (22,109,350 shares).

The bank stated that in H1 2024, the company's property management/non-owner value-added/three supplies one industry/community value-added/city services/commercial operation achieved revenues of 12.8/0.4/2.5/2/2.2/0.3 billion yuan respectively. Property management showed steady growth with a 4.6% year-on-year revenue increase, three supplies one industry grew relatively faster with a 23.8% year-on-year revenue increase, and the property management foundation remained solid; non-owner value-added revenue proportion decreased to 1.7%, with limited direct impact on the future real estate market; community value-added business revenue increased by 6% year-on-year, mainly due to the increase in local life services (including home intermediary services) revenue. However, due to a decrease in the contract volume and unit price of the community media business with higher profit margins, the gross profit margin of the community value-added business decreased by about 10 percentage points to 39% year-on-year. Overall, the community value-added sector focuses on residential community consumption, with great growth potential and higher gross margin, making it an important driver for the company's future profit growth.

The bank further mentioned that as a leading property management company with brand and scale advantages, the company's core business is steadily developing. In the short term, it is affected by the real estate industry, with some uncertainties regarding accounts receivable and goodwill impairment. The bank maintains the company's net income attributable to equity holders forecast for 2024-2026 at 2.2/2.5/2.7 billion yuan, corresponding to PE ratios of 7.4/6.5/6.0 times. The valuation of the industry leader is attractive, and the bank maintains a "shareholding" rating.