Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.20, indicating a potential upside of 21.2% from the current price of HKD 2.64 [2][7]. Core Insights - The company's total revenue for the first half of 2024 decreased by 8.8% year-on-year to RMB 7.02 billion, primarily due to declines in both external value-added services and owner value-added services, which fell by 60.7% and 33.9% respectively [1][6]. - Despite the revenue decline, the company proposed an interim dividend of RMB 0.03 per share, a 20% increase from the previous year's interim dividend of RMB 0.025 [1][6]. - The gross profit margin is expected to stabilize, with a slight decline of 3.4 percentage points to 17.0%, which is better than the anticipated 16% [1][6]. Summary by Sections Financial Performance - Total revenue for the first half of 2024 was RMB 7.02 billion, down from RMB 7.69 billion in the same period of 2023 [6]. - Core profit for the first half of 2024 was RMB 716 million, a decrease of 28.8% year-on-year, but an increase of 31% compared to the second half of 2023 [1][6]. - The company reported a net loss of RMB 16.3 billion for the first half of 2024, influenced by a significant impairment provision for trade receivables [1][6]. Business Segments - Property management revenue remained stable, with a slight increase of 2.0% to RMB 5.37 billion, while urban services revenue decreased by 4.0% to RMB 647 million [1][6]. - The company is focusing on optimizing its portfolio and ensuring the conversion of contracted area into managed area to maintain operational scale [1][6]. Market Position - The company's reliance on the real estate market is decreasing, with revenue and gross profit from external value-added services dropping to 3% each in the first half of 2024, down from 8% and 7% respectively in the first half of 2023 [1][6]. - The company is expected to benefit from a lower dependency on the real estate cycle compared to its peers, which may help the gross margin to bottom out in 2024-2025 [1][6].
雅生活服务：增值服务放缓，但毛利率将有望触底，派息增加