Everbright Securities has released a research report, stating that considering the slowdown in the growth of CHINA OVS PPT's (02669) value-added services, it has revised down the company's forecasted net profit attributable to shareholders for 2026 and 2027 to 1.48 billion yuan and 1.60 billion yuan, respectively, from previous estimates of 1.77 billion yuan and 1.91 billion yuan. A new forecast for 2028 is set at 1.71 billion yuan. As a state-owned property management firm, its valuation remains attractive, leading to a maintained "Buy" rating. The key points from Everbright Securities are as follows:
In April, the related party China Overseas Land & Investment reported a 20% year-on-year increase in monthly sales. CHINA OVS PPT achieved a 6% year-on-year revenue growth in 2025, with dividend payments increasing by 9.3%.
1. CHINA OVS PPT reported annual revenue of 14.96 billion yuan for 2025, a 6.0% increase year-on-year (2024 financial data has been restated due to business consolidation, same below). Net profit attributable to shareholders was 1.37 billion yuan, a decrease of 9.7% year-on-year. Revenue showed steady growth, but profit faced pressure. The gross profit margin was 15.0%, down 1.6 percentage points from the previous year. As of the end of 2025, the company's managed gross floor area was 480 million square meters. For the full year, the company declared a dividend of 20 HK cents per share (including a special dividend), with a total dividend payout of 590 million yuan, a 9.3% increase year-on-year.
2. The related party China Overseas Land & Investment released its operational data for April 2026, showing contracted sales of 24.2 billion yuan, a year-on-year increase of 20.0%. Cumulative sales from January to April amounted to 75.7 billion yuan, up 13.7% year-on-year. From January to April, the cumulative new equity land bank area added was 634,000 square meters. The related party's strong sales performance indicates significant growth potential for the property management business. The company's cash position is robust, and the dividend payout ratio has increased.
Throughout 2025, China Overseas Land & Investment added land reserves valued at 99.1 billion yuan, ranking first in the industry. The newly added land reserve area was 5.11 million square meters, also ranking first. From January to April 2026, China Overseas Land & Investment achieved a cumulative year-on-year increase of 13.8% in full-caliber sales and 13.8% in equity-caliber sales, demonstrating outstanding performance among mainstream developers. The related party's strong sales and active land acquisition are expected to provide CHINA OVS PPT with a sufficient supply of high-quality property management projects.
In December 2025, the company injected capital into CSCEC Property to acquire a 70% controlling stake, formally consolidating CSCEC Property into its financial statements. This move further enhances the company's revenue and market competitiveness.
The company's business structure continues to optimize, with core operations maintaining steady growth. In 2025, revenue from basic property management, community value-added services, non-owner value-added services, and parking space sales was 11.7 billion yuan, 1.2 billion yuan, 1.9 billion yuan, and 70 million yuan, respectively, with year-on-year growth rates of +10.0%, -12.0%, +6.1%, and -49.8%. Basic property management revenue accounted for 78.4% of total revenue, an increase of 2.3 percentage points year-on-year. In 2025, the company secured new property management contracts covering 90.9 million square meters, of which 85.1% were from independent third parties. The total value of newly signed contracts was 5.24 billion yuan. Against the backdrop of a deep adjustment in the real estate industry, the company's basic property management business maintained a steady growth trend.
Community value-added services were primarily affected by weak domestic consumption demand, with sluggish demand in retail consumption, home improvement services, commercial service operations, and public space leasing assistance leading to a slowdown in revenue growth.
The company's cash position remains strong, and the dividend payout ratio has increased. As of the end of 2025, the company's cash and bank balances stood at 6.27 billion yuan, a 7.5% increase year-on-year. Excluding special dividends, the full-year dividend payout ratio for 2025 was 41.9%, an increase of 6.1 percentage points year-on-year, reflecting continued growth in shareholder returns.
Risk warnings: Intensified external competition may lead to a decline in gross profit margins, and value-added services may underperform expectations.