Kaiyuan Securities released a research report initiating coverage on CHINA OVS PPT (02669) with a "buy" rating. The firm projects the company's net profit attributable to shareholders for 2025-2027 to be 16.1, 17.6, and 19.6 billion yuan respectively, corresponding to EPS of 0.49, 0.54, and 0.60 yuan. At current stock prices, the PE ratios are 9.5, 8.7, and 7.8 times respectively.
CHINA OVS PPT is affiliated with China Overseas Group under China Construction Group. The related parties maintain steady land acquisition with significantly improved sales market share, providing sufficient delivery resources with continuously upgrading project quality. The company's managed project scale continues to expand, and profitability is expected to improve sustainably alongside structural adjustments including the exit of loss-making projects and the gradual delivery of high-end residential properties.
The report notes that since listing, both revenue and profit have maintained growth, with compound annual growth rates of 23.1% and 25.7% respectively from 2019-2024. Basic property management revenue accounts for over 70% of total revenue, remaining the company's primary income source. In 2024, the company's profit growth exceeded revenue growth, with gross margin and net margin increasing by 0.7 percentage points and 0.5 percentage points respectively to 16.6% and 10.8%, primarily due to improved gross margins in basic property management. The company maintained dividend payout ratios around 30% from 2019-2023, which increased to 35.8% in 2024, though this remains relatively low compared to mainstream property management companies.
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