CITIC International slightly lowered the target price for CHINA RES MIXC to RMB 53.58 and maintained a "Buy" rating

Zhao Yin International stated that CHINA RES MIXC (01209.HK) is expected to achieve a 5.1% year-on-year revenue growth to RMB 18 billion in the fiscal year 2025, which is 2% lower than market expectations but in line with Zhao Yin International's forecast. The property management segment's revenue remained flat year-on-year, mainly due to the drag from value-added services; the commercial management segment's revenue grew by 10% year-on-year, a slowdown from the 21% growth in the fiscal year 2024, primarily due to the high base of shopping center business. Net profit increased by 10.3% year-on-year to RMB 4 billion, mainly benefiting from stable gross profit margins in basic property management, improved gross profit margins in shopping centers, and a decrease in selling and administrative expense ratios, achieved through digitalization, exiting low-quality projects, and cross-business collaboration. The total number of employees decreased by 10%, further confirming the aforementioned efficiency improvement efforts.

The bank slightly lowered its target price from HKD 53.96 to HKD 53.58 to reflect adjustments in profit forecasts, with the new target price corresponding to a 25 times projected price-to-earnings ratio for 2026. Considering the company's reduced reliance on residential business, excellent shopping center operational capabilities, a 100% dividend payout ratio, and its ability to attract both property and consumer investors due to the service-oriented consumption theme, it maintains a "Buy" rating and views it as a top choice in the property management industry