CICC has issued a research report assigning a "Buy" rating to CHINA RES MIXC (01209), noting that the company is seizing opportunities to expand its business formats and profit models. The report forecasts that the revenue and performance of its commercial management business segment will achieve a compound annual growth rate (CAGR) exceeding 20% during the "16th Five-Year Plan" period (2025-2030), thereby driving the entire company to achieve an approximate 15% CAGR in performance during the same period. For comparison, the company's performance CAGR is projected to be 37% during the "14th Five-Year Plan" period (2020-2025). The strong historical returns on assets managed by the company make it easier to secure contracts in prime locations with favorable planning conditions. The increase in market share per city and the growth in same-store sales form a virtuous cycle. CICC believes that as the company's management scale expands, the margin by which its same-store sales outperform overall retail sales growth may widen, indicating that the company is currently executing a development model where scale and efficiency grow in tandem. From an external environment perspective, the commercial management industry is not only experiencing its most policy-friendly historical phase but is also gaining more potential clients with the development of a multi-tiered REITs market.
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