Investment Rating - The report gives a "Buy" rating for Xing Sheng Commercial (06668.HK) [3] Core Views - Xing Sheng Commercial has a strong development certainty in the Greater Bay Area, with a strategic layout of "Bay Area Dual Centers, Twin Stars in One City" [1] - The company is focused on optimizing its business structure, with a significant portion of its projects located in the Greater Bay Area [1][19] - The company has a robust operational strength and brand recognition, with a stable financial position and leading advantages in the market [3] Summary by Sections 1. Company Overview - Xing Sheng Commercial has established a strong presence in the Greater Bay Area, with 33 out of 54 projects located there, accounting for 61.1% of total projects [1][19] - The company has a total contracted area of approximately 2.77 million square meters, with 1.77 million square meters already opened [1][14] 2. Business Model and Revenue Structure - The company operates through three main business models: entrusted management, brand and management output, and whole leasing services [2][39] - As of H1 2024, the revenue from entrusted management services was 210 million RMB, showing a year-on-year growth of 10.5% [2] - The gross profit margins for entrusted management, brand output, and whole leasing services were 57.9%, 75.2%, and 12.7% respectively, maintaining stability compared to the previous year [2] 3. Financial Performance - In 2023, the company reported a revenue of 635 million RMB, a year-on-year increase of 13.0%, with a gross margin of 52.5% [3][5] - The company has consistently paid high dividends, with a dividend per share of 0.12 RMB in 2023, representing a 12.2% increase and a payout ratio of 70% [3][31] 4. Growth Strategy - The company has a flexible strategy that adapts to market conditions, focusing on optimizing project structures and ensuring high-quality profit growth [3][35] - The management team is experienced and has a clear strategic direction, emphasizing the importance of talent development and operational efficiency [29][33] 5. Market Position and Recognition - Xing Sheng Commercial has been recognized as a leading commercial management company in the Greater Bay Area, receiving multiple awards for its operational excellence [26][27] - The company has a strong backing from its parent company, Xinghe Holdings, which provides financial stability and growth potential [12][13]
星盛商业：扎根大湾持续优化结构，稳中向好剑指行业龙头-20250303