CISI FIN has issued a research report maintaining a "Buy" rating for POLY PPT SER (06049). The rating is based on the company's stable growth in its core property management operations, ongoing optimization of its business structure, and a marked improvement in the quality of its market expansion. The firm anticipates that POLY PPT SER will achieve steady growth in both performance and dividend distributions. Net profit attributable to shareholders for 2026, 2027, and 2028 is forecasted to be 1.628 billion yuan, 1.697 billion yuan, and 1.744 billion yuan, representing year-on-year growth rates of 5.0%, 4.2%, and 2.8%, respectively. Based on the closing price on April 1, 2026, the price-to-earnings ratio for 2026 is 9.5 times, with a dividend yield of 5.3%.
Performance in 2025 was stable and in line with expectations, with notable effectiveness in expense control. The company reported operating revenue of 17.126 billion yuan, a year-on-year increase of 4.8%. The comprehensive gross profit margin was 17.43%, down 0.83 percentage points from the previous year, primarily due to a decline in non-property owner value-added service revenue and an increase in third-party projects for basic property services. Benefiting from operational efficiency improvements and lean management, the company's management expense ratio decreased by 1.1 percentage points year-on-year to 5.8%, while administrative expenses fell by 11.5% to 993 million yuan. Net profit attributable to shareholders for the full year was 1.550 billion yuan, up 5.1% year-on-year, with a net profit margin of 9.2%, maintaining a stable level. The dividend per share was 1.401 yuan, corresponding to a payout ratio of 50%, indicating stable and sustainable dividends.
The structure of trade receivables remained healthy, with ample and secure cash reserves. As of the end of 2025, the company's trade receivables stood at 3.444 billion yuan, an increase of 22.3% year-on-year, mainly due to natural growth from the expansion of managed scale and a slight lengthening of payment terms due to industry factors. However, receivables due within one year accounted for over 89% of the total, indicating a high-quality aging structure and controllable collection risk. Cash and bank balances reached 12.886 billion yuan, up 8.6% year-on-year. Net operating cash flow was 1.827 billion yuan, covering net profit by 1.2 times, reflecting high operational quality.
The scale and unit price of the core property management business both improved. By the end of 2025, the company's managed area reached 855 million square meters, a year-on-year increase of 6.4%, while the contracted area was 1.012 billion square meters, up 2.4% year-on-year. Property management revenue for 2025 was 13.150 billion yuan, an increase of 12.6% year-on-year. The average residential property fee rose to 2.47 yuan per square meter per month, and the unit price for third-party projects increased to 1.96 yuan per square meter per month, indicating continuous improvement in pricing power and project quality.
Market expansion saw improvements in both volume and quality. In 2025, the contract value for newly acquired third-party projects reached 2.930 billion yuan, keeping the company in the industry's top tier. New contracts in core 50 cities accounted for 80.4% of the total, while new contracts for core non-residential business types represented 84.6% of the annual total. The proportion of high-value segments such as commercial offices, public services, and scenic spots continued to increase, demonstrating ongoing optimization in the quality and structure of market-oriented expansion.
Value-added services faced short-term pressure but are expected to stabilize and recover through structural optimization. Revenue from non-property owner value-added services in 2025 was 1.636 billion yuan, down 16.5% year-on-year, mainly due to reduced demand for front-end sales assistance in real estate and adjustments in the office leasing market. Community value-added service revenue was 2.340 billion yuan, a decrease of 13.6% year-on-year. The company is actively shifting towards existing asset maintenance businesses, such as housing repairs, energy retrofits, and inspection and handover services. Revenue from other non-property owner value-added services increased by 5.8% year-on-year. It is anticipated that as operational demand for existing assets is released, the value-added services segment will gradually stabilize and improve.
Risk warnings include potential delays in improving operational efficiency, slower-than-expected market expansion, and lower-than-expected collection rates.
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