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>The NBS (National Bureau of Statistics) property data was in-line in December 2023, the full year property sales value/property investment decline narrowed to -6.5%/-9.6% YoY (-12.5/-16.5% excluding base adjustment impact) from -26.7/- 10% in 2022，still in bottoming process.</li><li>Looking into 2024, we believe the recovery in new home market will still take time.</li><li>Sales and investments may show a continuous fall at -4/-9% YoY in our view, considering the diminishing policy effect, developers’ debt issue which may squeeze purchase demand to secondary market, low land acquisition in 2023 which may result in a lower level of quality saleable resource, and higher affordable housing supply which may lead to less demand for commercial housing. </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 NBS (National Bureau of Statistics) property data was in-line in December 2023, the full year property sales value/property investment decline narrowed to -6.5%/-9.6% YoY (-12.5/-16.5% excluding base adjustment impact) from -26.7/- 10% in 2022，still in bottoming process.Looking into 2024, we believe the recovery in new home market will still take time.Sales and investments may show a continuous fall at -4/-9% YoY in our view, considering the diminishing policy effect, developers’ debt issue which may squeeze purchase demand to secondary market, low land acquisition in 2023 which may result in a lower level of quality saleable resource, and higher affordable housing supply which may lead to less demand for commercial housing. 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 Sector – NBS Dec data in line, still in bottoming process

<ul><li>NBS data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a lower base.</li><li>Property sales also weakened with volume/value declining 28/26% MoM and showing larger divergence between high- and low-tier cities.</li><li>We think Nov-Dec 2023 may continue to be weak as the buying sentiment remains low and is hard to be lifted with the marginally weakening effect from easing policies. </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.

NBS data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a lower base.Property sales also weakened with volume/value declining 28/26% MoM and showing larger divergence between high- and low-tier cities.We think Nov-Dec 2023 may continue to be weak as the buying sentiment remains low and is hard to be lifted with the marginally weakening effect from easing policies. 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 Sector – NBS Oct Data in Line

Equity Bottom-Up

Binjiang Service Group / Equity Bottom-Up

<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

<ul><li>We expect the company to continue delivering higher-than-peers results in 1H23E with 32% YoY growth in NP, driven by robust GFA &amp; revenue growth (both &gt;35% YoY), mostly supported by reserved-GFA &amp; unbooked revenue prepared in advance thanks to its visionary strategy which predicted the worsethan-expected market in 1H23E.</li><li>NP grew slower than revenue as GP margin is estimated to decline 3ppt to 28%, given less contribution from non-owner VAS with higher margin, which leads to a healthier revenue structure in our view.</li><li>Considering the company’s high growth (+30% earnings CAGR in 22-25E) backed by longtermism-seeking strategy, its clear and heathier VAS structure, beneficial regional focus, strong and stable parentco as well as attractive valuation (10/8x 2023/24E), we reiterate BUY and keep TP unchanged at HK$35.8. The company remains our top pick in PM companies.</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 expect the company to continue delivering higher-than-peers results in 1H23E with 32% YoY growth in NP, driven by robust GFA &amp; revenue growth (both &gt;35% YoY), mostly supported by reserved-GFA &amp; unbooked revenue prepared in advance thanks to its visionary strategy which predicted the worsethan-expected market in 1H23E.NP grew slower than revenue as GP margin is estimated to decline 3ppt to 28%, given less contribution from non-owner VAS with higher margin, which leads to a healthier revenue structure in our view.Considering the company’s high growth (+30% earnings CAGR in 22-25E) backed by longtermism-seeking strategy, its clear and heathier VAS structure, beneficial regional focus, strong and stable parentco as well as attractive valuation (10/8x 2023/24E), we reiterate BUY and keep TP unchanged at HK$35.8. The company remains our top pick in PM companies.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) – High Growth Secured by Visionary Strategy

<ul><li>If there is one phrase to summarize PM sector’s 2022, that is “never give up”.</li><li>Facing an unprecedented COVID and property market, not only SOEs utilized their dominate resources to deliver better-than-expected results (Poly, CR Mixc, COPH), but also POEs increased dividend and fought hard in third party expansion. (CGS, Sunac Service, New Hope Service). I</li><li>In this sector report, we initiate Binjiang service as Top pick on management’s good track record, 30% growth profile, stable parentco (63% sales YoY growth in 1Q23) and attractive valuation (11/9x 2023/24E PE).</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.

If there is one phrase to summarize PM sector’s 2022, that is “never give up”.Facing an unprecedented COVID and property market, not only SOEs utilized their dominate resources to deliver better-than-expected results (Poly, CR Mixc, COPH), but also POEs increased dividend and fought hard in third party expansion. (CGS, Sunac Service, New Hope Service). IIn this sector report, we initiate Binjiang service as Top pick on management’s good track record, 30% growth profile, stable parentco (63% sales YoY growth in 1Q23) and attractive valuation (11/9x 2023/24E PE).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 Sector – FY22 review: if and only if Binjiang Service

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)

China Property Sector – NBS Dec data in line, still in bottoming process

The NBS (National Bureau of Statistics) property data was in-line in December 2023, the full year property sales value/property investment decline...

CMB International

China Property Sector – NBS Oct Data in Line

NBS data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a...

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

Binjiang Service (3316 HK) – High Growth Secured by Visionary Strategy

We expect the company to continue delivering higher-than-peers results in 1H23E with 32% YoY growth in NP, driven by robust GFA & revenue growth...

CMB International

China Property Sector – FY22 review: if and only if Binjiang Service

In this sector report, we initiate Binjiang service as Top pick on management’s good track record, 30% growth profile, stable parentco (63% sales...

CMB International

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