Since the second half of 2025, the company has focused on managing its cash flow better. By year’s end, it held a solid cash reserve of 15.8 billion yuan. They showed an impressive performance in 2025, with revenue hitting 18.02 billion yuan, a 5% increase from the previous year. The core net profit also grew significantly, reaching 3.95 billion yuan, marking a 14% rise. This growth was largely driven by better profit margins in their shopping malls.
According to a report by CICC, the company is expected to see a steady increase in profits in 2026 and 2027, with forecasts suggesting core net profits will rise by around 12% and 10%, respectively. This optimism reflects their strong market presence, as CICC rates their stock as an “Outperform” and sets a target price of HKD 48.
Shopping Mall Performance
The shopping mall sector has been thriving. Retail sales jumped by 23.7% in 2025, and same-store sales grew by 12.2%. Luxury malls outperformed this trend even further, achieving 15.3% growth. The company opened 14 new malls during the year, bringing their total to 135, with a notable number ranking in the top tiers within their local markets.
Property Management Stability
In the property management sector, revenue growth was stable. They grew gross profit by 7% year-over-year, showcasing resilience despite challenges in the environment. The company also managed to expand its reach, taking on new projects totaling 35.3 million square meters.
Experts suggest that effective cash flow management is crucial during uncertain economic times. In an interview, a financial analyst noted, “Companies that prioritize cash flow usually navigate market fluctuations better.” This insight echoes with the company’s approach, ensuring they achieve cash flow coverage equal to their core net profit for the year.
Strategic Outlook
For their ’15th Five-Year Plan’, the company has ambitious goals. They aim to deepen their business strategy, focusing on commercial management and property services. Plans include expanding to 200 shopping malls and achieving double-digit revenue growth in property management.
Consumer sentiment is vital in this landscape. Recent surveys indicate that while luxury spending is up, many consumers remain cautious, balancing their shopping habits with practical financial considerations.
In conclusion, by maintaining strong management practices and a forward-thinking strategy, the company shows promise for continued growth. This careful balancing act between expansion and cash flow management positions it well for future challenges.
For further insights, you might check out reports on financial trends from sources like The World Bank and recent market analyses.
