Cathay Securities and Haitong Securities: Maintain MIDEA REAL EST "Buy" rating with a target price of HKD 5.46

According to the Zhitong Finance APP, Guotai Junan has released a research report maintaining an "Overweight" rating for MIDEA REAL EST (03990). The bank forecasts EPS for 2025/26/27 to be RMB 0.42/0.57/0.74, giving the company a 12x PE for 2025, with a target price of HKD 5.46. The company's core net profit doubled in the first half of 2025, continuously delivering a competitive dividend policy in the industry, with its development business contributing new growth points. (Unless otherwise specified, all amounts are in RMB, 1 HKD = 0.92 RMB) Key Points from Guotai Junan: Core net profit doubled, continuously delivering a competitive dividend policy in the industry In the first half of 2025, the company achieved operating revenue of RMB 199.659 billion, a year-on-year increase of 41.3%; core net profit was RMB 31.208 billion, a year-on-year increase of 119.4%. The company's gross profit margin for 1H25 was 30.8%, a decrease of 3 percentage points year-on-year, mainly due to the increase in sales costs; net financial income was RMB 1.163 billion, turning from negative to positive year-on-year, with improved financial structure, mainly due to the repayment of all borrowings during the period, significantly reducing interest expenses. The board announced on August 27, 2025, a mid-term dividend of HKD 0.15 per share to shareholders. Since its listing in 2018, the company has adhered to value sharing, maintaining a competitive dividend policy in the industry for seven consecutive years, with a dividend yield consistently exceeding 8%. Business structure optimization, new breakthroughs in property management services with projects exceeding ten million The company has clarified that it will focus on four major sectors: "development services + property management services + asset operation + real estate technology," promoting synergy between businesses through resource integration. Specifically, in 1H25, the revenue from property management services, asset operation, real estate technology, and development services was RMB 92.999 billion, RMB 27.493 billion, RMB 28.697 billion, and RMB 50.470 billion, respectively, with year-on-year changes of +8.7%, +13.9%-9.2%, with development services being a new business unit. Among them, in 1H25, the managed and contracted area for property management services was 79.46 million square meters and 96.06 million square meters, respectively, with year-on-year growth of 5% and 4%. The company signed seven non-residential projects with amounts exceeding ten million, continuously focusing on core sectors such as parks and healthcare. Development business contributes new growth points After the restructuring on October 22, 2024, the company undertook the full-chain development management of existing real estate development resources from its controlling shareholder. Guided by technology, health, and energy conservation, it provides planning and implementation of design and engineering construction management, as well as other related supporting services. In the first half of 2025, the company focused on deepening urban development (Guiyang, Wuxi, and Xuzhou) and expanded four third-party residential projects. The total contracted amount for the full cycle was RMB 160 million. Among them, Wuxi Midea Dongwangfu, as the first representative work of light asset construction and operation, debuted with RMB 472 million, crowned as the new king of luxury flow speed in Wuxi, with a sales rate exceeding 90%, and both volume and price exceeding the expectations of the entrusting party