External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Binjiang Service Group / Equity Bottom-Up

<ul><li>The Company’s NP grew 12.2% YoY in 1H25, well above our projected industry LSD growth.</li><li>Total revenue rose 22.7% YoY, with basic PM up 27.9% supported by robust GFA growth (+19%) on lower exit rates, higher collection rates and fee hikes.</li><li>5S VAS revenue grew 32% YoY, amid a driver shift from hard decoration to soft decoration &amp; community living services. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The Company’s NP grew 12.2% YoY in 1H25, well above our projected industry LSD growth.Total revenue rose 22.7% YoY, with basic PM up 27.9% supported by robust GFA growth (+19%) on lower exit rates, higher collection rates and fee hikes.5S VAS revenue grew 32% YoY, amid a driver shift from hard decoration to soft decoration &amp; community living services. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Binjiang Service (3316 HK) - 1H25: Robust PM with 5S VAS Driver Shifting

<ul><li>The company’s FY24 revenue grew 28% YoY to RMB 3.6bn, 3% above CMBI estimate, driven by managed GFA expansion and strong renovation business.</li><li>Net profit rose 11% YoY to RMB 550mn, 2% below CMBI expectation, due to: 1) gross margin decline; 2) an extra RMB 50.5mn withholding tax from fund transfer, excluding which core net profit grew 21% YoY to RMB 600mn, 7% above CMBI estimate.</li><li>GFA from third parties expanded 21% YoY, far exceeding peers. With 91%/62% of third-party GFA in Zhejiang/Hangzhou, the company plans to focus on expansion in other high-tier cities outside Zhejiang in the future. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The company’s FY24 revenue grew 28% YoY to RMB 3.6bn, 3% above CMBI estimate, driven by managed GFA expansion and strong renovation business.Net profit rose 11% YoY to RMB 550mn, 2% below CMBI expectation, due to: 1) gross margin decline; 2) an extra RMB 50.5mn withholding tax from fund transfer, excluding which core net profit grew 21% YoY to RMB 600mn, 7% above CMBI estimate.GFA from third parties expanded 21% YoY, far exceeding peers. With 91%/62% of third-party GFA in Zhejiang/Hangzhou, the company plans to focus on expansion in other high-tier cities outside Zhejiang in the future. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Binjiang Service (3316 HK) - Expansion Outside Zhejiang to Support GFA Growth

Thematic (Sector/Industry)

<ul><li>China’s destocking scheme showed encouraging progress, with Guangzhou announcing to purchase developers’ unsold inventory at cost prices, which could serve as an example for other cities. We think the scheme currently may only benefit SOEs/semi-SOEs as LGFVs may need to divest their financing function at first.</li><li>A number of regions actively implemented mortgage rate related policies after 17 May, and we think there is still room for further adjustment in Beijing, Shanghai and Shenzhen.</li><li>Noticeable recovery on property sales was shown with the daily transaction volume post-517 policy for new/second hand home increasing by 23%/21% compared to pre-517 policy. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China’s destocking scheme showed encouraging progress, with Guangzhou announcing to purchase developers’ unsold inventory at cost prices, which could serve as an example for other cities. We think the scheme currently may only benefit SOEs/semi-SOEs as LGFVs may need to divest their financing function at first.A number of regions actively implemented mortgage rate related policies after 17 May, and we think there is still room for further adjustment in Beijing, Shanghai and Shenzhen.Noticeable recovery on property sales was shown with the daily transaction volume post-517 policy for new/second hand home increasing by 23%/21% compared to pre-517 policy. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Property - Encouraging Signs on Both Policy Implementation and Property Sales, Reiterate Buy

<ul><li>We reiterate our view of overweighting high quality names among Property &amp; PM sector given that 1) Shenzhen/Suzhou further relaxed home purchase policies which further proved regulators’ determination in upholding the market confidence in our view</li><li>2) we think there is ample room for fine-tuning in tier-1 cities (Figure 1)</li><li>3) property transaction data are robust </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We reiterate our view of overweighting high quality names among Property &amp; PM sector given that 1) Shenzhen/Suzhou further relaxed home purchase policies which further proved regulators’ determination in upholding the market confidence in our view2) we think there is ample room for fine-tuning in tier-1 cities (Figure 1)3) property transaction data are robust Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Property - City-Level Relaxation Came Earlier...

<ul><li>Several cities are applying new pricing mechanisms for homes for sale by using usable GFA rather than total GFA as the pricing base, but the total home price remains unchanged, which results in a higher ASP.</li><li>This would not boost sales in short term but the improved transparency should benefit the industry in the long term, in our view.</li><li>Policy on refinancing of mortgages is under discussion, and we think it may lift purchasing sentiment only if mortgage rates are lowered to a level that makes cap rate appear attractive. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Several cities are applying new pricing mechanisms for homes for sale by using usable GFA rather than total GFA as the pricing base, but the total home price remains unchanged, which results in a higher ASP.This would not boost sales in short term but the improved transparency should benefit the industry in the long term, in our view.Policy on refinancing of mortgages is under discussion, and we think it may lift purchasing sentiment only if mortgage rates are lowered to a level that makes cap rate appear attractive. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Property - Weekly Highlight: Sales Decline May Widen in Sep

China

Binjiang Service Group Co. Ltd. operates as a reputable property management service provider. The Company offers property management services including security, cleaning, gardening, repair, maintenance, and ancillary services to at residential and non-residential properties. Binjiang Service Group serves customers in China.

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Binjiang Service Group (3316 HK)

Binjiang Service (3316 HK) - 1H25: Robust PM with 5S VAS Driver Shifting

Total revenue rose 22.7% YoY, with basic PM up 27.9% supported by robust GFA growth (+19%) on lower exit rates, higher collection rates and fee hikes.

CMB International

Binjiang Service (3316 HK) - Expansion Outside Zhejiang to Support GFA Growth

The company’s FY24 revenue grew 28% YoY to RMB 3.6bn, 3% above CMBI estimate, driven by managed GFA expansion and strong renovation business.

CMB International

Property - Encouraging Signs on Both Policy Implementation and Property Sales, Reiterate Buy

For stocks, we prefer PM companies like CR MixC, Poly Services, Binjiang Services and Onewo, property agents BEKE, and PJM company Greentown Mgmt.

CMB International

Property - City-Level Relaxation Came Earlier...

Shenzhen made another move on policy relaxation including 1) lowering CPF down payment ratio from 30% to 20% for 2nd home buyers

CMB International

Property - Weekly Highlight: Sales Decline May Widen in Sep

Policy on refinancing of mortgages is under discussion, and we think it may lift purchasing sentiment only if mortgage rates are lowered to a level...

CMB International

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