The property management unit is in good shape
Yesterday, in addition to the housing sector, the mainland property management unit performance is quite strong, benefiting Zhonghai property (02669) to surrender the support of bright performance and after the big line to raise its target price, which, the property and Greentown services (02869) Respectively, up 14.2% and 3.4%, while Greentown services before the sea property in the year before the high.
Zhonghai property in the interim results bright
The first six months of China Shipping property rose 4.1% to 1.31 billion yuan. During the period, gross margin increased from 24.7% last year to 30.1%, net profit rose 36% to 160 million yuan, interim interest also increased by 36% to 1.5 cents.
Citigroup said the interim property was strong, with core net profit up 33% yoy to $ 150m, equivalent to 57% of the bank’s core net profit for the year, which is expected to benefit from higher gross margin and core profit margins From 11% in the same period last year to 11.6% in the same period last year. In addition, the management floor area increased by 14.7% to 98.6 million square meters from 8,600 million square meters last year, helping to increase revenue by 4% to $ 1.3 billion. In addition, thanks to the support of the parent company, it is expected that the construction area of the property management of the China Sea will be 18% compound annual growth rate, given the “buy” rating, the target price from 2.06 yuan raised to 2.32 yuan, the closing price, the potential increase There are still about 37%.
Greentown service is looking forward to increasing dividend
Greentown service is another desirable option. Galaxy International said it expects its management area to maintain good growth, as management is confident that maintaining a management area of about 30% annual growth (higher than Citigroup’s expected growth in the property), coupled with its excellent quality of service also make it The winning ratio has been higher, and most of the high-end development projects are using its services, estimated management area this year will grow 28.5% to 140 million square meters. In addition, the community service business is expected to maintain high growth this year, expected to grow by about 70% to 810 million yuan (the same below), plus the company to actively increase kindergartens, real estate agents, etc., is expected to the Yangtze River Delta and other regions of the service The demand will gradually increase, is expected to enhance next year’s profit momentum.
Galaxy International said the management believes that this year’s dividend payout ratio will be raised to more than 30%, plus its cash in hand, it is estimated that there is room for increased dividends.
In addition, Greentown services are gradually turning to a wide range of value-added services, including more than 3,000 kinds of park products, housing rental and hosting, culture and education and electricity business platform, the value-added services, the gross margin of 43 %, Much higher than the overall gross margin of 19%, help to enhance long-term profitability.
CCB International pointed out that Greentown services are blue-chip industry, it is estimated that the core net profit in the first half of this year will rise 20% to 150 million yuan, the annual core profit growth of 34%, plus Greentown no debt, holding net cash $ 2.3 billion, and the estimated market underestimation of its first half of its revenue potential and its education business, reiterating the “Outperform” rating, with the target price raised from HK $ 4.14 to HK $ 5.11.
In short, the property management prospects in the Mainland is impressive, coupled with the two shares have their own characteristics, the property has a parent company support, income growth is not a problem; Greentown services are high gross profit new business support, earnings growth is expected to see a high line. Technical trends, the sea property has broken through the rising channel, the first resistance position in the 1.83 Hong Kong dollars, such as the success of broken, the stock is expected to a new high, aggressive investors may wish to absorb the level, and yesterday opened at HK $ 1.58 stagnation; Greentown , The stock price has been on the level of resistance, such as interim performance better than expected, the stock is expected to a higher level, the advance can be in advance to the level of small note to absorb, conservative investors can be announced after the release of the results.