In a report released today, Miao Zhang from CMB International Securities maintained a Buy rating on Binjiang Service Group Co. Ltd., with a price target of HK$32.06.
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Miao Zhang has given his Buy rating due to a combination of factors that highlight Binjiang Service’s resilience and earnings visibility despite sector headwinds. The company delivered solid double-digit revenue and profit growth in FY25, maintained its premium positioning, and improved both collection rates and average property management fees at a time when most peers are seeing declines, underscoring strong operational execution.
The reduced dependence on its parent, successful third‑party expansion with high project concentration, and the disposal of low‑efficiency projects all support more sustainable margins. In addition, the 5S value‑added services segment reached a record high gross profit contribution, while management increased the dividend payout ratio to 75% and committed to keeping it in FY26, offering attractive shareholder returns and justifying the maintained Buy rating and slightly higher target price.