Analyst Miao Zhang of CMB International Securities maintained a Buy rating on China Resources Mixc Lifestyle Services Ltd., with a price target of HK$43.86.
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Miao Zhang’s rating is based on a combination of factors that highlight the company’s strong performance and potential for growth. China Resources Mixc Lifestyle Services Ltd. has demonstrated robust growth in its core business, particularly in the shopping mall segment, which saw a 19% increase in revenue and a significant expansion in gross profit margin. This performance underscores the company’s superior operational capabilities in capturing consumption trends and managing tenant relationships effectively.
Miao Zhang also notes the company’s strategic decision to exit low-quality projects, which is expected to improve future gross margins and collection rates. Despite a reduction in revenue growth guidance, the company maintained its core net profit growth at double digits, indicating improved margins. Additionally, the declaration of a 100% dividend payout, offering a yield of 5.1%, makes the stock attractive compared to its peers. The recent drop in share price presents a favorable entry point for investors, given the company’s above-peer growth and diversified business layout.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a HK$42.00 price target.