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>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><p><em>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.</em></p>

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

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

<ul>
<li>
<a href="https://www.smartkarma.com/entities/binjiang-service-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28940:1" rel="noopener">Binjiang Service Group (3316 HK)</a> reported a solid earnings growth of 28% YoY, with revenue up 41%. Binjiang has outperformed its peers in the PMC space by a long way.</li>
<li>Net cash on the balance sheet increased to 37% of the current market capitalization, led by the growth of operating profits and payables.</li>
<li>The PE FY23e/24e now is a modest 11.2x FY23e/9.2x FY24e with dividend yield of 5.4%/6.5% FY23e/24e (assuming a 60% payout ratio).</li>
</ul>



Binjiang Service Group (3316 HK) reported a solid earnings growth of 28% YoY, with revenue up 41%. Binjiang has outperformed its peers in the PMC space by a long way.
Net cash on the balance sheet increased to 37% of the current market capitalization, led by the growth of operating profits and payables.
The PE FY23e/24e now is a modest 11.2x FY23e/9.2x FY24e with dividend yield of 5.4%/6.5% FY23e/24e (assuming a 60% payout ratio).


Binjiang 3316 HK: >30% Profit Growth, Dividend Yield~6.5%, Cash Now 37% of Market Cap

<ul>
<li>
<a href="https://www.smartkarma.com/entities/binjiang-service-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28940:1" rel="noopener">Binjiang Service Group (3316 HK) </a>posted a 42% YoY increase in revenue and 19% YoY in profits for FY23, aided by 170% revenue growth in VAS services (24% of revenues).</li>
<li>Margin decline remains a concern, with a GPM(%) decline of 510 bps to 24.8%, with declines across all business segments. </li>
<li>Net cash increased to 74% of market capitalization, with the company declaring a dividend of 1.37 HKD/share ( implying an 8% trailing yield). </li>
</ul>



Binjiang Service Group (3316 HK) posted a 42% YoY increase in revenue and 19% YoY in profits for FY23, aided by 170% revenue growth in VAS services (24% of revenues).
Margin decline remains a concern, with a GPM(%) decline of 510 bps to 24.8%, with declines across all business segments. 
Net cash increased to 74% of market capitalization, with the company declaring a dividend of 1.37 HKD/share ( implying an 8% trailing yield). 


Binjiang (3316 HK) FY23 Results: 74% of the Market Cap in Cash, 8% Dividend Yield

<ul>
<li>
<a href="https://www.smartkarma.com/entities/times-neighborhood-holdings" target="_blank" data-smartkarma-citation="entities:28666:1" rel="noopener">Times Neighborhood (9928 HK)</a> has been a disastrous call since we first highlighted it. In this insight, we reflect upon the red flags we could have done well to spot. </li>
<li>We cover red flags ranging from the level of precise guidance, pivot in strategy, and the parent's poor financial health, to the effect on receivables sucking cash from the company. </li>
<li>Everyone makes mistakes (we are human, after all). We would like to share our experience to educate readers to become better investors and sidestep investments in such names.  </li>
</ul>



Times Neighborhood (9928 HK) has been a disastrous call since we first highlighted it. In this insight, we reflect upon the red flags we could have done well to spot. 
We cover red flags ranging from the level of precise guidance, pivot in strategy, and the parent's poor financial health, to the effect on receivables sucking cash from the company. 
Everyone makes mistakes (we are human, after all). We would like to share our experience to educate readers to become better investors and sidestep investments in such names.  


Takeaways from the Times Neighborhood Investment Debacle

<ul>
<li>A recent rally in property management companies due to measures taken by the government has set <a href="https://www.smartkarma.com/entities/binjiang-service-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28940:1" rel="noopener">Binjiang Service Group (3316 HK)</a> for a big move upwards.</li>
<li>The stock is cheap and trades at 10.5x/8.1x FY22/23e PE with 37% of the market cap in cash and a 5.8%/7.4% FY22e/23e dividend yield.</li>
<li>Catalysts for the company are further loosening on the property by the government and a profit alert of 38-40% earnings growth for FY22.</li>
</ul>


A recent rally in property management companies due to measures taken by the government has set Binjiang Service Group (3316 HK) for a big move upwards.
The stock is cheap and trades at 10.5x/8.1x FY22/23e PE with 37% of the market cap in cash and a 5.8%/7.4% FY22e/23e dividend yield.
Catalysts for the company are further loosening on the property by the government and a profit alert of 38-40% earnings growth for FY22.


Binjiang: Set up for a Good Move From Here

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) - 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 3316 HK: >30% Profit Growth, Dividend Yield~6.5%, Cash Now 37% of Market Cap

Binjiang's PE FY23e/24e now is a modest 11.2x FY23e/9.2x FY24e with dividend yield of 5.4%/6.5% FY23e/24e (assuming a 60% payout ratio). The...

Sameer Taneja

Binjiang (3316 HK) FY23 Results: 74% of the Market Cap in Cash, 8% Dividend Yield

We summarize the results for FY23 for Binjiang Svc Co ( 3316 HK), a PMC in China. Trading at 6.9x FY24 PE with a >8% dividend yield and 74% of the...

Sameer Taneja

Takeaways from the Times Neighborhood Investment Debacle

We summarise our learnings /mistakes from the Times Neighborhood investment debacle. This piece covers aspects of financial analysis critical to...

Sameer Taneja

Binjiang: Set up for a Good Move From Here

Binjiang trades at 10.5x/8.1x FY22/23 PE with a dividend yield of 5.7/7.4% based on a 60% payout ratio. It is the best way to play the PMC bounce...

Sameer Taneja

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