The Zhitong Finance App learned that the Opinion Index released the August 2024 Property Service Development Report.

In August, a number of property companies disclosed their mid-term performance expectations. Forecasts from leading companies in China and Ya Life Services, Country Garden Services, Financial Services, and Evergrande Property showed that net profit generally declined, and even changed from profit to loss; however, the market is optimistic about the industry as a whole and some domestic real estate companies.

Some companies achieved remarkable results in expanding overseas in the first half of the year, and the secondary market continued to decline during this period. During the reporting period, property companies including Xincheng Yue Service, Hongyang Service, Jinbi Property, Pearl River Co., Ltd., and Yongsheng Service disclosed the market-based expansion situation in the first half of the year through official WeChat, showing the overall characteristics of extensive business coverage and a large number of project expansions.

CITIC Securities released a research report saying that in the 2024 interim report, the core business of property service companies continued to grow, the quality of outreach improved, and efficiency remained stable, reflecting the nature of utilities. The most central factor affecting corporate valuations remains corporate governance issues. Companies with less risk of independence and companies with high dividends can obtain higher valuation premiums.

CITIC Securities said that as enterprises actively control incremental related transactions, gradually absorb stock-related holdings, and raise the level of dividends, property service companies' concerns about independence can be mitigated. In terms of the industry as a whole, the bank currently expects the dividend payment rate of 53% for enterprises to focus on in 2024, which has investment value. It is optimistic about property service companies with steady core business development and high dividend rates.

According to the Guojin Securities Research Report, continued and stable dividend repurchases by some real estate companies can not only prove that the company's finances are stable, cash flow is sufficient, and business development is good, thereby dispelling concerns in the capital market, but also strengthening shareholders' returns and boosting market confidence. Some property companies continue to consolidate their basic market, enhance their business independence, and open up new performance growth points. With their solid operating quality, they have shown strong resilience through the cycle. Currently, property stocks have fallen back to the bottom range, and the investment cost ratio is outstanding.

Leading companies related to the property sector include:

China Resources Vientiane Life (01209): The company achieved main business revenue of 7.957 billion yuan in the first half of 2024, with shareholders' core net profit accounting for 1.766 billion billion yuan, +24.2% year-on-year; the board of directors resolved to pay an interim dividend of RMB 0.279 per share and a special dividend of RMB 0.575 per share. As of the first half of 2024, the company had 105 shopping malls in operation, with a total construction area of 11.5 million square meters. The retail sales of the shopping malls in operation were 100.7 billion, +19.7% over the same period last year.

Wanwuyun (02602): In the first half of 2024, Wanwuyun achieved revenue of 17.56 billion yuan, an increase of 9.6% over the previous year. The efficiency improvements brought about by the Butterfly City Strategy are more definitive. The number of butterfly castles has increased from 584 at the end of 2022 to 621 at the end of 2023. By the end of 2023, the company had invested more than RMB 0.3 billion to carry out process modifications in 150 butterfly cities, covering 1,124 residential property projects. After the renovation, the overall efficiency of Diecheng increased by 4.5 percentage points, and the overall gross profit of residential properties increased by 55.5% year-on-year in 2023.

CNOOC Property (02669): In the first half of 2024, the company achieved main business revenue of 6.838 billion yuan, +9.0% year over year, and net profit to mother of 0.738 billion yuan, +16.0% year over year; it plans to pay a dividend of 8.5 cents per share. In the first half of 2024, the company handed over an impressive report card in the “adversity” adjustment of the property industry. The core property management business achieved steady growth, the expansion business continued to be rich, the share of third-party and non-residential businesses increased, and gross margin improved, showing strong resilience.

Poly Industries (06049): The company achieved main business revenue of 7.872 billion yuan in the first half of 2024, with shareholders' share of profit of 0.846 billion, or +10.8% compared to the same period; from the split of the business structure, it can be seen that the company's core property management business is growing steadily, and the decline in revenue from value-added business is related to the overall downward trend in the real estate industry and the adjustment of the business structure.