Orient Securities: Maintaining Shimao Services (00873) “Increase” Rating Target Price of HK$0.73

The Zhitong Finance App learned that Orient Securities released a research report stating that according to the recent operating conditions of Shimao Services (00873), it will adjust the forecast for the revenue growth rate and gross margin of various businesses, as well as the forecast of marketing expenses. Maintain the “Overweight” rating and adjust the target price to HK$0.73.

According to the report, the company's market expansion continues to gain strength, continues to expand the market coverage of high-energy urban agglomerations, and the business format continues to expand service scenarios, and infrastructure management is expected to continue to grow steadily. The volume and quality of the company's market expansion rose sharply in the first half of 2025. Third-party bidding for Exituo added an annualized contract amount of about 960 million yuan, an increase of 54.6% over the previous year; the additional contract area was 40.1 million square meters, an increase of 126.6% year on year, both of which reached record highs. The average property fee for new homes reached 2.9 yuan/square meter/month, reflecting both an increase in the quality and profit level of newly signed projects. The company's market expansion strategy focuses on core urban agglomerations and high-energy markets. 74% of new projects are located in the Beijing-Tianjin-Hebei, Yangtze River Delta and Greater Bay Area, with Tier 1 and 2 cities accounting for 73%.

Furthermore, it is worth emphasizing that the proportion of high-quality customers with contracts exceeding 5 million yuan/year increased to 64.3%. In the second half of the year, the company continued to expand its market. From July to October, the company added nearly 200 new projects, including industrial parks, commercial buildings, housing, schools, hospitals, government logistics services, etc., continuously expanding service scenarios and customer value boundaries, providing a foundation for the steady growth of infrastructure management in the future.