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.

Thematic (Sector/Industry)

<ul><li>We are positive towards PM sector in 2023 as it is the key beneficiary of both housing completion push (GFA gain) and reopening (Community VAS), so higher growth and better cash collection.</li><li>This would create room for the existing market leaders and surviving POEs (after property crisis) to accelerate earnings growth, both organically and via M&amp;A activities.</li><li>Therefore, we forecast 2023E earnings growth at 23% from a low base of 12% in 2022E.</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 are positive towards PM sector in 2023 as it is the key beneficiary of both housing completion push (GFA gain) and reopening (Community VAS), so higher growth and better cash collection.This would create room for the existing market leaders and surviving POEs (after property crisis) to accelerate earnings growth, both organically and via M&amp;A activities.Therefore, we forecast 2023E earnings growth at 23% from a low base of 12% in 2022E.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 Property Service Sector – 2023 a year for market leaders and survivors

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

<ul><li>Binjiang Services reported solid 1H24 results with revenue/NP grew 39%/15% YoY.</li><li>GP margin (GPM) narrowed 1.2ppts since furnishing services with lower margin accounted for higher proportion in revenue.</li><li>Tax rate hiked 6ppts due to provision for withholding tax. </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.

Binjiang Services reported solid 1H24 results with revenue/NP grew 39%/15% YoY.GP margin (GPM) narrowed 1.2ppts since furnishing services with lower margin accounted for higher proportion in revenue.Tax rate hiked 6ppts due to provision for withholding tax. 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) - Solid 1H24 with Balanced Sources of Growth, Maintain BUY

<ul><li>Company’s 1H23 earnings missed with NP grew at 21% YoY vs. original FY target of 30% given 1) late approval of withholding tax deduction which could have sent NP growth to 29% in 1H23.</li><li>2)GP margin declined 4.8 ppts to 26.7% mainly driven by revenue structure change in community VAS.</li><li>We like the company for its stable parentco., good cash flow and high dividend pay-out ratio, but lowered our forecast in NP by 4-11% in FY23-25E to reflect its pressure on both third-party expansion and two VAS segments.</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.

Company’s 1H23 earnings missed with NP grew at 21% YoY vs. original FY target of 30% given 1) late approval of withholding tax deduction which could have sent NP growth to 29% in 1H23.2)GP margin declined 4.8 ppts to 26.7% mainly driven by revenue structure change in community VAS.We like the company for its stable parentco., good cash flow and high dividend pay-out ratio, but lowered our forecast in NP by 4-11% in FY23-25E to reflect its pressure on both third-party expansion and two VAS segments.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) – 1H23 Missed, Future Growth Under Pressure

China

Binjiang Service Group Co. Ltd. provides comprehensive property management and related services across the People's Republic of China. Its core services include security, cleaning, gardening, repair, and maintenance for residential and non-residential properties, alongside value-added services for both property owners and non-property owners. The company was founded in 1995 and is headquartered in Hangzhou, China.

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Binjiang Service Group (3316 HK)

China Property Service Sector – 2023 a year for market leaders and survivors

We are positive towards PM sector in 2023 as it is the key beneficiary of both housing completion push (GFA gain) and reopening (Community VAS), so...

CMB International

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

Binjiang Service (3316 HK) - Solid 1H24 with Balanced Sources of Growth, Maintain BUY

GP margin (GPM) narrowed 1.2ppts since furnishing services with lower margin accounted for higher proportion in revenue. Tax rate hiked 6ppts due...

CMB International

Binjiang Service (3316 HK) – 1H23 Missed, Future Growth Under Pressure

Company’s 1H23 earnings missed with NP grew at 21% YoY vs. original FY target of 30% given 1) late approval of withholding tax deduction which...

CMB International

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