Zhongtai Securities Maintains "Buy" Rating on CHINA RES MIXC (01209) with Double-Digit Revenue and Profit Growth, Strong Commercial Performance

Stock News12-15

Zhongtai Securities reiterated its "Buy" rating on CHINA RES MIXC (01209), citing the company’s robust performance in commercial operations and steady growth in property management. The firm’s revenue and profit both expanded, supported by efficient cost control and strong shareholder returns. Key highlights from the 2025 interim report include:

**Revenue and Profit Growth with Enhanced Shareholder Returns** In H1 2025, CHINA RES MIXC reported revenue of RMB8.52 billion, up 6.5% YoY, and net profit attributable to equity shareholders of RMB2.00 billion, a 7.4% increase. Gross margin improved to 37.1%, rising 3.1 percentage points YoY, driving net profit growth above revenue growth. Operating efficiency improved, with the sales expense ratio declining 0.6 ppts to 1.1% and the overall expense ratio dropping 0.7 ppts to 7.0%. The interim dividend per share surged 89.6% to RMB0.529, with a payout ratio of 60% (up 24 ppts), supplemented by a special dividend of RMB0.352 per share.

**Strong Commercial Performance Backed by Parent Company** Commercial operations revenue grew 14.65% YoY to RMB3.27 billion, with gross margin climbing 5.2 ppts to 66.1%. The total gross floor area (GFA) under commercial management reached 13.093 million sqm (+14.11% YoY), 84.4% of which was contributed by its parent company. Office commercial GFA rose 7.7% to 1.875 million sqm, with 73.3% sourced from the parent. Commercial operations now account for 38.3% of total revenue, serving as a key growth driver.

**Stable Property Management with Balanced Structure** Property management revenue edged up 1.1% to RMB5.16 billion, though gross margin dipped slightly to 18.8%. Core property services revenue grew 8.8% to RMB3.50 billion, with managed GFA expanding 6.2% to 275.505 million sqm (44.4% from third parties). Urban space services revenue jumped 15.1% to RMB950 million, with 98.1% of its 127.191 million sqm GFA externally sourced, highlighting strong market expansion.

**Risks** Potential risks include a sharper-than-expected downturn in the property sector, accounts receivable impairments, and lower-than-anticipated property fee collection rates.

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