Yuexiu Services Group (6626) H2 2024 earnings summary

Executive summary

• Revenue increased by 20.0% year-over-year to RMB 3,868 million, with non-commercial property management and value-added services contributing RMB 3,134 million (+19.2%) and commercial property management and operational services RMB 734 million (+23.7%).

• Core net profit rose 5.1% to RMB 512 million, while profit attributable to owners dropped 27.5% to RMB 353 million due to goodwill impairment.

• Contracted GFA rose 6.3% to 88.73 million sq.m., and GFA under management also grew 6.3% to 69.31 million sq.m., supported by 85 newly obtained projects.

• Gross profit margin declined to 23.3% from 26.6% year-over-year.

• Annual dividend per share increased by 5.6% to RMB 0.169, with a final dividend proposed at HKD 0.083 per share and total 2024 dividend at HKD 0.183 per share, maintaining a 50% payout ratio.

Financial highlights

• Gross profit increased to RMB 901.6 million, but net profit dropped to RMB 285.8 million due to a goodwill impairment of RMB 236.9 million.

• Basic EPS decreased 27.5% to RMB 0.232.

• Cash and time deposits remained stable at RMB 4,702 million at year-end.

• No bank borrowings or major acquisitions/disposals during the year.

• Trade receivables increased 34.8% to RMB 773.4 million.

Outlook and guidance

• Focus on high-quality growth by strengthening presence in core cities and high-potential segments, with strategic expansion into new markets.

• Continued emphasis on digital-intelligent transformation, customer satisfaction, and value-added services optimization.

• The industry is expected to see steady growth, higher concentration, and broader service offerings.