Yuexiu Services Group (6626) H2 2023 earnings summary

Executive summary

• Revenue rose 29.7% YoY to RMB3,224mn and net profit increased 17.0% to RMB487mn; contracted GFA reached 83.45mn sq.m. and GFA under management 65.21mn sq.m.

• Community VAS revenue grew 43.3% to RMB932mn, while the annual dividend rose 64.9% to RMB0.160 per share.

Financial highlights

• Revenue was RMB3,224mn in 2023, up 29.7% YoY; cost of sales increased 31.0% to RMB2,367mn.

• Gross profit margin was 26.6%, down 0.7 p.p.; net profit was RMB487mn, up 17.0%, and net profit margin was 15.1%, down 1.6 p.p.

• Basic EPS was RMB0.32, up 18.5% YoY; finance income increased 42.9% to RMB107mn.

• Operating cash inflow was RMB695mn; cash and fixed bank deposits totaled RMB4,704mn, up 7.9%.

Outlook and guidance

• Strategy centers on basic service quality across four business types, four VAS platforms and five capabilities, including market development, digital management and risk control.

• Priorities include differentiated residential services, lifecycle customer experience, TOD service standards, high-end office management and integrated urban services.

• Plans include expanding community and intelligent services, strengthening supply-chain capabilities and growing market-oriented revenue.

• ESG plans include photovoltaic and energy-storage development, energy-efficiency upgrades and low-carbon communities, with initiatives staged over two to five years.