Zhongtai Securities Maintains "Buy" Rating on POLY PPT SER (06049) as H1 Earnings Show Steady Growth

Stock News12-08

POLY PPT SER (06049) reported sustained revenue growth in the first half of 2025, with its core property management business demonstrating stable expansion, according to a research note by Zhongtai Securities. The decline in value-added service revenue was attributed to broader downward trends in the real estate sector and business restructuring. The brokerage forecasts EPS of RMB 2.88, 3.09, and 3.33 per share for 2025–2027, with corresponding P/E ratios of 11.0x, 10.3x, and 9.6x, maintaining its "Buy" rating.

Key highlights from the report include: POLY PPT SER’s H1 2025 revenue reached RMB 8.39 billion, up 6.6% YoY, while net profit attributable to equity holders rose 5.3% to RMB 890 million. Property management service revenue grew 13.1% YoY, driving overall top-line growth. Average service fees increased to RMB 2.47/sq m, up RMB 0.14/sq m from 2024. However, non-property owner value-added services and community value-added services declined by 16.1% and 3.7%, respectively, due to sector-wide pressures. Gross margin dipped 1.1 percentage points to 19.4% amid an 8.0% rise in operating costs.

The company expanded its third-party projects, with contracted new third-party projects totaling RMB 1.41 billion in annual value, a 17.2% YoY increase. Notably, 84.6% of these projects were in Tier 1–2 cities, up 5.1 percentage points. By end-H1 2025, third-party projects accounted for 63.8% of its total managed area of 640 million sq m, reflecting a 5.9% YoY expansion. Meanwhile, projects from parent Poly Development Holdings grew 3.1% to 360 million sq m.

POLY PPT SER maintained a solid financial position with RMB 9.65 billion in cash and equivalents (down 2.5% from end-2024) and improved operating efficiency, as evidenced by a 0.9 percentage point reduction in expense ratio to 5.4%. The company aims to enhance growth drivers, service quality, organizational efficiency, and technological capabilities to achieve scalable profitability.

Risks include a sharper-than-expected real estate downturn, receivables impairment, and lower-than-anticipated fee collection rates.

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