FIRST SHANGHAI has issued a research report maintaining a "Buy" rating on CHINA RES MIXC (01209), with projected net profits attributable to shareholders of 4.00 billion yuan, 4.60 billion yuan, and 5.26 billion yuan for 2025-2027 respectively, setting a target price of HK$48.5. During the period, the company acquired "China Resources Connect" to integrate member resources, establishing a commercial closed-loop of input and output, with the second growth curve taking initial shape, empowering cross-format customer acquisition for the company. Leveraging China Resources Group's comprehensive format coverage across China Resources Land, property management, and commercial management, along with three major advantages of inter-format synergy, the company's leading position continues to strengthen, driving long-term steady development. Meanwhile, the company actively rewards shareholders with increasing dividend payout ratios year over year, achieving 100% payout ratios for two consecutive years.
**Core Net Profit Growth of 15.0% YoY in H1 2025**
In the first half of 2025, the company recorded revenue of 8.524 billion yuan, up 6.5% year-on-year. Overall gross margin reached 37.1%, improving by 3.1 percentage points year-on-year. Core net profit grew 15.0% year-on-year to 2.01 billion yuan, with core net profit margin improving by 1.4 percentage points to 23.6%. The company proposed an interim dividend of 0.53 yuan per share, along with a special dividend of 0.35 yuan per share. Based on core net profit, the interim payout ratio reached 100%. As of mid-2025, the company's total contracted area was approximately 470 million square meters, with total area under management of approximately 430 million square meters, of which third-party properties accounted for 59.3%.
**Commercial Management Segment Achieves Double Enhancement in Scale and Efficiency, Consolidating Leadership Position**
During the period, commercial management segment revenue reached 3.27 billion yuan, up 14.6% year-on-year. Gross margin improved by 5.2 percentage points to 66.1%. Shopping center retail sales grew 21.1% year-on-year to 122 billion yuan, with same-store comparable growth of 9.7%, outperforming the growth rate of total retail sales of consumer goods. At period-end, 125 shopping centers were in operation with an average occupancy rate maintained at 97.1%, up 0.4 percentage points from end-2024, continuing to climb. Among these, 53 managed projects ranked first in retail sales in their local markets, while 104 ranked in the top three locally, further consolidating the industry leadership position. Landlord rental income grew 17.2% year-on-year to 14.7 billion yuan, with NOI growing 18.0% year-on-year to 10.0 billion yuan. NOI margin improved year-on-year to 68.2%, reflecting the company's excellent operational capabilities. Four new shopping centers opened during the period with an average opening rate of 91%. The number of office building projects under management increased to 225 during the period, covering 17.79 million square meters. The occupancy rate of 27 projects for which the company provides operational services improved by 0.5 percentage points from end-2024 to 74.1%.
**Property Management Segment Improves Quality and Efficiency, with Increased Proportion of Urban Space Segment**
During the period, property management segment revenue grew 1.1% to 5.16 billion yuan, with gross margin declining 0.1 percentage points to 18.8%, mainly due to a 1.6% decline in value-added services revenue from both non-owners and owners in the community space segment. However, urban space revenue grew 15.1% year-on-year. At period-end, total contracted area reached 450 million square meters, with total area under management of 420 million square meters, representing increases of 1.8% and 0.4% respectively from end-2024. Urban space area under management grew 1.8% to 127 million square meters, accounting for 30.2% of the company's total area under management across all formats, with revenue proportion increasing to 18.4%. The contract collection rate for the urban space segment improved by 1.1 percentage points year-on-year to 83.8%.