China Shipping Property Income Steady

The property management sector was recently sought after by funds, and Country Garden (2007) announced the split-up of Country Garden’s service listing in the form of introduction, which further boosted the related shares. With the increase in per capita income in the Mainland and the continued development of the mainland real estate market, the property management industry has developed rapidly. In addition, in order to enhance competitiveness and increase word of mouth, many companies have expanded their park services and services for the elderly in addition to providing property management services.

China Overseas Property (2669) is engaged in property management services in the Mainland, Hong Kong and Macau. In the past, the revenue performance was stable. In the previous year, the Group’s total revenue was RMB 3.358 billion, up 1.9% year-on-year, operating profit rose 26.6% to RMB 438 million, and net profit rose 29.1% to RMB 307 million. The average return of shareholders’ equity was 36.7%, an increase of 6.1 percentage points year-on-year. In the previous year, the Group received a total of 828 million yuan in property management contracts for new or renewed contracts; and the total amount of uncompleted contracts for property management services that had a specified maturity date at the end of last year was approximately RMB 1.53 billion.

The stock price breaks out and looks at 3.3 yuan

In October of last year, the Group acquired the parent company China Overseas (0688) for a consideration of RMB 190 million to acquire approximately 120 property management projects in the Mainland for its property management business, expanding its business scope. As of the end of December last year, the Group provided professional property management services for 646 projects. The total management area increased by 37.3% year-on-year to 128 million square meters, and distributed to 73 cities and regions in Hong Kong, Macau and the Mainland.

At the end of December of last year, the Group’s bank balances and cash amounted to RMB 2.711 billion, which was in a net cash position with a gearing ratio of 31%. The interest on the loan is calculated at a floating interest rate, with a weighted average annual interest rate of 2.56%.

In terms of trend, April 18 fell to 2.19 yuan, and it rebounded. On May 28, it broke upwards with a “daylight candlestick.” Yesterday it saw a new high of 3.08 yuan, STC%K line continued to rise above the %D line, and MACD maintained its bull. The gap, which is higher than the top line of the Bollinger Band, has greater resistance and should be lower than 2.8 yuan to absorb. Look for 3.3 yuan, not to fall below 2.6 yuan for continued holding.