Investment Rating - The report maintains a "Recommend" rating for China Resources Mixc Lifestyle Services (01209 HK) with a target price of HKD 34 2 [1] Core Views - The company's shopping malls demonstrate strong stability with a high dividend payout enhancing its appeal as a dividend stock [1] - Shopping center gross margin increased to 72 5% contributing 50 7% of the total gross profit [1] - The company plans to open 14 new shopping centers in the second half of 2024 ensuring continued growth [1] - Property management revenue grew by 13 8% despite a slight decline in collection rate [1] - Office leasing revenue growth slowed due to increased vacancy rates in urban areas [1] - Mid-term dividend increased by 25 1% with a special dividend boosting the 2023 payout ratio to 100% [1] Financial Performance - Revenue for H1 2024 reached RMB 7 597 billion up 17 1% YoY [1] - Gross profit was RMB 2 703 billion up 20% YoY with a gross margin of 34% up 0 8 percentage points YoY [1] - Net profit attributable to shareholders was RMB 1 908 billion up 36% YoY [1] - Shopping center retail sales grew by 19 7% YoY with luxury projects up 9 6% and non-luxury projects up 26 7% [1] - Property management contracted area and managed area were 3 98 billion sqm and 4 46 billion sqm respectively [1] - Office leasing managed area was 15 23 million sqm with revenue of RMB 960 million up 6 6% YoY [1] Future Projections - EPS for 2024-2026 is projected to be RMB 1 58 1 88 and 2 25 respectively [1] - The company's fair market value is estimated at HKD 78 billion based on a residual income model [1] - Revenue growth is expected to be 18% in 2024 and 2025 and 15% in 2026 [2] - Net profit growth is forecasted at 23% in 2024 19% in 2025 and 20% in 2026 [2] Operational Highlights - The company managed 108 shopping centers with 46 ranking first in local retail sales and 85 ranking in the top three [1] - Foot traffic exceeded 640 million visits up 25% YoY with an average occupancy rate of 96 7% [1] - Rental income per sqm increased by 2 9% YoY with total rental income up 19 7% [1] - The company's strong brand partnerships and flexible rental strategies reinforce its market position [1]
华润万象生活：2024年中报点评：购物中心稳定性强，高派息提升红利属性