FY25：逆境中展现力量

FY25:Showing strength in tough times Target Price(Previous TPUp/DownsideCurrent Price Binjiang Service’s FY25 revenue rose 14.1% YoY to RMB 4.1bn, 2%/4% belowBloomberg consensus/CMBI estimate. Net profit grew 12.1%YoY to RMB880mn, 4% below consensus and our estimate.With lower parentcoreliance,andrising collection rate andaverage PM fee against the industry trend,thecompany further showed the resilience of its premium positioning and highconcentration strategy.Dividend payout ratio was raised 5ppts to 75%in FY25and will be maintainedin FY26according to mgmt..We maintain BUYwithTPslightlyrevisedup 0.9% to HK$32.06,based on13x 2026E P/E(target multiple China PropertyManagementMiao ZHANG(852) 3761 8910zhangmiao@cmbi.com.hk Furtherreduced parentcoreliance.Binjiang Service’sGFA mix trendedagainst the industry: amid intensifying third-party competition, peers sawrising parent-contributed GFA, while Binjiang Service’s GFAfrom relatedpartiesaccounted for 36% of FY25 newly-addedGFA under management, Rising collection rateandaverage PM feeagainst industry trend. PerCRIC,industry collection rate kept falling in FY25 amid economicheadwinds.Binjiang Service’s collection rate rose 0.29ppts(FY24:+0.62ppts). Its avg.PMfee increased to RMB 4.2/sqm/month (FY24: 4.1),with 14 projectssigningfee hike contacts in FY25.Amid weak incomeexpectations and multiple cities announcing guidance policies on price capsforPMfees,20key citiessaw pricefell 0.23% YoY in 2025 according to theChinaIndex Academy.We attribute these two counter-trend performances 5S VAS:grossprofit contribution hit a record high.While the 5S VASsegment's revenue contribution remained stable at around 30%in FY25, asignificant gross margin improvement (+4.6ppts to 28.5%) drove itsgrossprofit contribution to a historic high of 37%. We believe subsequent focusshould be on the sustainability of its large-flat decoration business, which Source: FactSet Disclosures& Disclaimers Analyst Certification The researchanalyst who is primary responsible for the content of this research report, in whole or in part, certifies that with respectto the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neitherthe analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issueof this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies covered in this report. CMBIGM Ratings BUY: Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock withpotential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM OUTPERFORM:Industry expected to outperform the relevant broad market benchmark over next 12 monthsMARKET-PERFORM:Industry expectedto perform in-line with the relevant broad market benchmark over next 12 monthsUNDERPERFORM:Industry expected to underperform the relevant broad market benchmark over next 12 months Address:45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary ofChina Merchants Bank) Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that whichis contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the or its affiliate(s) to whom it is distributed. This report is not and should not be construed as an offer or solicitation tobuy or sell any security or any interest insecurities or enter into any transaction.NeitherCMBIGMnor any of its affiliates,shareholders, agents, consultants, directors, officers or employees shall beliable for any loss, damage or expense whatsoever, whether direct or consequential, incurred in relyin