Investment Rating - The report maintains an "Outperform" rating for Poly Property Services (06049 HK) [1][3] Core Views - Poly Property Services achieved steady growth in H1 2024 with a 10% YoY increase in revenue to RMB 7 87 billion and an 11% YoY increase in net profit attributable to shareholders to RMB 850 million [1][4] - The company optimized its expansion structure focusing on core cities and non-residential sectors with new contract amounts reaching RMB 1 2 billion and RMB 1 07 billion respectively [1][6] - Community value-added services revenue stabilized at RMB 1 25 billion despite a 1 8% YoY decline with growth in specific segments such as community services (14 3% YoY) and property hosting services (100 2% YoY) [1][7] Financial Performance - In H1 2024 the company's gross margin was 20 5% down 0 7pct YoY while the net margin remained stable at 10 9% and the management expense ratio decreased by 1 0pct to 6 2% [1][4] - The company's revenue from property management services grew 16 1% YoY to RMB 5 59 billion while community value-added services revenue declined 1 8% YoY to RMB 1 25 billion [1][4] Expansion and Market Focus - As of H1 2024 Poly Property Services operated in 205 cities with 2 667 managed projects and 3 168 contracted projects covering a total contracted area of 950 million square meters [1][6] - The company focused on four core economic zones with new contract amounts in other cities declining by 40 5% YoY and their share decreasing by 10 5pct [1][6] - The commercial office sector accounted for 36% of new contract amounts up 12pct YoY while public service key segments accounted for 45 4% up 4 5pct YoY [1][6] Financial Forecasts - Revenue forecasts for 2024 and 2025 were revised down to RMB 17 billion and RMB 19 billion respectively due to a slowdown in the property management sector [1][8] - Net profit attributable to shareholders for 2024 and 2025 is expected to be RMB 1 57 billion and RMB 1 75 billion respectively with EPS of RMB 2 83 and RMB 3 17 [1][8] - The company's PE ratio is projected to be 7 4X and 6 6X for 2024 and 2025 respectively [1][8] Business Segments - Property management services remained the largest revenue contributor at RMB 5 59 billion in H1 2024 accounting for 71% of total revenue [1][4] - Community value-added services contributed RMB 1 25 billion in H1 2024 with growth in specific segments such as property hosting services (100 2% YoY) and home improvement services (3 2% YoY) [1][7]
保利物业：业绩保持稳增，结构持续优化