Yuexiu Services: Revenue increased by 20% in 2024, and a budget of 500 million yuan is allocated for acquisitions this year.

On March 20, Yuexiu Services (06626.HK) announced its full - year results for 2024. The financial report data shows that in the whole year of 2024, Yuexiu Services' operating income was 3.868 billion yuan, a year - on - year increase of 20%; the core net profit excluding goodwill impairment was 512 million yuan, a year - on - year increase of 5.1%; the gross profit margin decreased by 3.3 percentage points year - on - year to 23.3%.

As of the end of 2024, Yuexiu Services' contracted area reached 88.73 million square meters, and the managed area was 69.31 million square meters.

At the results meeting, Yuexiu Services' management said that in 2025, it will focus on enhancing management efforts and the payment ability of clients. Based on the existing layout, it will focus on in - depth development in the four first - tier cities of Beijing, Shanghai, Guangzhou and Shenzhen and their surrounding cities, but will not blindly pursue scale expansion.

Source: Yuexiu Services official

Meanwhile, Yuexiu Services plans to declare a final dividend of HK$0.083 per share (equivalent to RMB 0.078 per share).

01

In terms of revenue composition, the revenue structure of each business segment of Yuexiu Services has been continuously optimized. Basic property management provides a stable foundation, and community value - added services have grown rapidly.

The revenue from non - commercial property management and value - added services was 3.134 billion yuan, a year - on - year increase of 19.2%, accounting for 81% of the total revenue. Among them, basic property management services, non - owner value - added services, and community value - added services accounted for 32%, 18%, and 31% of the total revenue respectively.

The revenue from commercial property management and operation services was 734 million yuan, a year - on - year increase of 23.7%, accounting for 19% of the total revenue.

The management said that during the reporting period, the company focused on extending and expanding administrative logistics services, office decoration services, catering services, museum interpretation services, etc., and initial results have been achieved in market expansion. The overall scale of the company's commercial and basic property management fields has expanded, leading to the growth of basic property management performance. However, the non - owner value - added part was affected by the entire real estate cycle and maintained a stable and slight increase of 1.7% overall; in the community value - added part, the new retail business developed well and had relatively large growth.

The management also revealed that in 2024, Yuexiu Services voluntarily withdrew from some projects with poor operating efficiency or payment ability, resulting in a decline in the growth rate of the managed area.

02

In the whole year of 2024, Yuexiu Services signed 85 new projects, with an additional contracted construction area of 12.95 million square meters. After winning the bids for landmark projects such as the Guangdong Science Center and the Guangzhou Cultural Center, Yuexiu Services successfully won the bid for the Hong Kong - Zhuhai - Macao Bridge, a national strategic project, further consolidating its regional development foundation.

As of the end of 2024, about 60% of Yuexiu Services' managed area was located in the Greater Bay Area, and nearly 90% was distributed in first - and second - tier cities. Among the newly expanded projects last year, the Greater Bay Area accounted for 81%.

The management believes that overall, the property service industry has returned to rationality. In 2025, Yuexiu Services will continue to focus more on the company's operating quality to lay a solid foundation for future development. In specific business segments, basic property management will continue to undertake a property scale of 4 - 5 million square meters from Yuexiu Property each year to ensure the stable growth of the basic property service scale. In terms of non - owner value - added services, affected by the cycle of the real estate industry, the new - added scale will be under pressure. To cope with the expected decline in revenue, the company will accept all service demands for non - owner value - added services.

In 2025, Yuexiu Services' target for external expansion amount is 400 million yuan, an increase of 100 million yuan compared with 2024.

In addition, Yuexiu Services has allocated 500 million yuan for mergers and acquisitions.

"We have been keeping an eye on market opportunities, but we haven't made many moves. Next, we will still actively look for opportunities in the entire market and hope to make some high - quality acquisitions." The management said that it will focus on companies with high sustainable operating quality, relatively standardized financial management, and reasonable valuations.

Meanwhile, Yuexiu Services is also looking for merger and acquisition opportunities in the upstream and downstream industrial chains, such as smart home, charging piles, high - end housekeeping, energy management and other fields.

As of the end of 2024, Yuexiu Services' cash and fixed deposits were about 4.702 billion yuan, and the accounts receivable turnover days were 77 days.

In May 2024, Yuexiu Services announced a share repurchase in the open market. As of now, a total of about 13.05 million shares have been repurchased, accounting for 0.86% of the company's issued shares, and the shares have been cancelled.

The most recent repurchase was on January 17 this year. Since then, Yuexiu Services' stock price has risen by about 10.7%.