Maintain "Buy" with TP of HK$3.00. We believe Financial Street Property's ability in acquiring non-residential projects is further enhanced, which should help it to deliver solid growth in the next few years. We maintain our forecasts on the Company's 2023F-2025F EPS at RMB0.384, RMB0.463 and RMB0.566, respectively, which represents a CAGR of 20.4% during 2022-2025F. We maintain our TP of HK$3.00 by applying 7.2x 2023F PER, and maintain investment rating of "Buy" for the Company.

Resilient growth and better cost control in 1H2023. The resilient 1H2023 results reflected the Company's 1) steady growth in GFA under management; 2) recovery from the weak external environment of last year; and 3) better cost control. 1H2023 top line grew by 6.4% YoY to RMB712.4 mn. With improved cost control, 1H2023 shareholders' net profit recorded a larger growth of 14.8% YoY to RMB71.1 mn.

Enhanced ability in acquiring non-residential projects.Compared with that at the end of mid-2022, the Company increased 29 new projects under its management by the end of mid-2023.Among the 29 projects, 21 were non-residential projects, accounting for a large percentage of 72.4%. We believe the Company's SOE background and sound reputation in management of financial zones will be unique edges in acquiring non-residential projects. Its expansion in non-residential project management may beat market expectations in the next few years, in our view.

Catalysts: 1) More quality office projects acquired in the short term; 2) improvement in profitability; and 3) turnaround from the loss in its catering services. Downside risks: 1) Slower-than-expected growth in GFA under management; 2) weaker office demand; and 3) unexpected labor cost hikes.