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招商积余(001914):招商系地产及物管公布回购 彰显价值认可

Investment Savings (001914): China Merchants Real Estate and Property Management Announces Buybacks Highlight Value Recognition

swhy research ·  Oct 14, 2024 09:06

Key points of investment:

The chairman proposed to repurchase the company's shares, demonstrating confidence in continuous development and recognition of long-term value. According to the announcement, Mr. Lu Bin proposed that the company use centralized bidding transactions to buy back the company's shares. Among them, the purpose of the repurchase: all shares to be repurchased are to be cancelled and the company's registered capital reduced; repurchase method: the company's shares are to be repurchased through centralized bidding transactions through the Shenzhen Stock Exchange stock trading system; total repurchase amount: not less than RMB 0.078 billion (inclusive), not more than RMB 0.156 billion (inclusive); repurchase price: the upper limit of the repurchase price of the shares is not higher than 150% of the average trading price of the shares in the 30 trading days before the board of directors passed the buyback resolution; repurchase period: the shareholders' meeting considered and approved the repurchase plan Within 12 months from date. The chairman proposed to repurchase the company's shares, fully demonstrating confidence in the company's future continuous development and recognition of long-term value. Furthermore, the controlling shareholder, the chairman of China Merchants Shekou, proposed to repurchase the company's shares, which shows confidence in the development of China Merchants Shekou, and also means that the endogenous growth brought about by the controlling shareholder will be more stable and continuous in the future.

24H1 basic property management revenue was +16% year over year, and the amount of new contracts signed by third parties was +6% year over year. 2024H1, of property management revenue, revenue from basic property management, platform value-added services, and professional value-added services was +16%, +4%, and -3%, respectively, accounting for 84.35%, 3.4%, and 12.25%, respectively. The gross margins of basic properties, platform value-added services, and professional value-added services were 11.0%, 9.9%, and 11.1%, respectively, +0.4, +0.1, and -6.9pct compared to the same period. By the end of 24H1, the company's management area reached 0.385 billion square meters, +17% year-on-year. Among them, 1) residential and non-residential accounts for 34% and 66% respectively; 2) the management area from China Merchants Shekou accounts for 33%. 2024H1, the company's property management business achieved a new annual contract amount of 1.89 billion yuan, +0.3% year over year, of which new annual contract amount of 1.74 billion yuan was signed for third-party projects, +5.5% over the same period, and new projects with an annual contract amount exceeding 10 million yuan accounted for more than 50%.

At the end of 24H1, the commercial management area was 3.97 million square meters, +15% compared with the same period, and the quality of commercial operations increased. 2024H1, of asset management revenue, commercial operating income was 0.07 billion yuan, +17.3% year over year, gross profit margin 37.9%, +5.3 pct year on year; rental and operating income from holding property was 0.22 billion yuan, -1.4% year on year, gross profit margin of 57.5%, -0.9 pct year on year. At the end of 2024H1, the company managed 70 commercial projects (including preparatory projects), with a management area of 3.97 million square meters, +15% over the same period; of these, 3 were self-owned, 58 were managed by China Merchants Shekou projects, and 9 third-party brand export projects. As China Merchants Shekou's commercial real estate layout expands, the company's asset operation business is expected to receive greater support.

Investment analysis opinion: China Merchants Real Estate and Property Management announced the repurchase, demonstrating value recognition and maintaining the “buy” rating. The investment balance is backed by the China Merchants Group, which strategically focuses on property management and asset management. The company has strong resource endowments and outstanding market-based expansion capabilities, and is expected to continue to lead the property management industry in the future; the company continues to optimize its organizational structure, reduce costs and improve quality and efficiency, and subsequent profit margins are expected to gradually recover, promoting high-quality development with equal emphasis on the company's scale and efficiency. We maintain the company's 24-26 earnings forecast of 0.78/0.88/0.98 yuan per share. The current price corresponds to 24PE at 14X, maintaining a “buy” rating.

Risk warning: Real estate declined beyond expectations, labor costs rose beyond expectations, and exploration of value-added services fell short of expectations.

The translation is provided by third-party software.


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