> **来源：[研报客](https://pc.yanbaoke.cn)** # Binjiang Service (3316 HK) Summary ## Core Content Binjiang Service (3316 HK) reported strong performance in the first half of 2026 (1H26), demonstrating resilience in the face of sector-wide challenges. The company's revenue increased by 13.5% YoY to RMB 2.3 billion, with net profit rising 5.1% YoY to RMB 322 million, resulting in a net margin of 14%. The basic property management (PM) revenue grew by 20.9% YoY, contributing to a 4 percentage point increase in the revenue mix to 61%, although this led to a contraction in the overall gross profit (GP) margin by 1.7 percentage points. ## Key Financial Highlights - **Revenue**: RMB 2.3 billion in 1H26, up 13.5% YoY. - **Net Profit**: RMB 322 million, up 5.1% YoY. - **Net Margin**: 13.7% in 1H26, down 1.0 percentage point YoY. - **Basic PM Revenue**: RMB 1.40 billion, up 20.9% YoY. - **Basic PM GP Margin**: 17.04%, down 1.2 percentage points YoY. - **5S VAS Revenue**: RMB 655 million, up 0.4% YoY. - **Non-owner VAS Revenue**: RMB 243 million, up 13.7% YoY. - **Managed GFA**: Increased to 92.7 million sqm in 1H26, up 23.4% YoY. - **Net New Area**: Jumped 41% YoY. - **Collection Rate**: Rose by 1.46 percentage points YoY to a new high. - **Payout Ratio**: Maintained at 70%, implying an estimated FY26E dividend yield of 8%. - **Target Price (TP)**: HK\$31.37, based on a 13x FY26E P/E ratio. - **Current Price**: HK\$24.00, with a 30.7% upside to TP. ## Main Points ### Basic PM Performance - **Growth**: Basic PM revenue grew by 20.9% YoY. - **Collection Rate**: Increased by 1.46ppt YoY, supported by 10 projects with fee hikes. - **Challenges**: Despite growth, the GP margin fell by 1.2ppt YoY due to rising labor costs, project aging, and renewal concessions. - **Mitigation**: The company is implementing cost-saving measures such as robotics, digitalization, and centralized procurement to offset margin pressure. ### 5S VAS Growth - **Slower Growth**: 5S VAS revenue growth slowed to 0.4% YoY in 1H26 from 8.3% in FY25. - **Driver Shift**: The segment is shifting focus to custom home decoration, brokerage, and renovation services to drive growth in high-end projects. - **Non-owner VAS**: Returned to growth, increasing by 13.7% YoY to RMB 240 million, driven by parent company Binjiang Group's contracted sales. ### Earnings and Valuation - **Earnings Growth**: Net profit in 1H26 was RMB 322 million, up 5.1% YoY. - **EPS**: RMB 1.14 in 1H26, up 5.8% YoY. - **P/E Ratio**: Based on 13x FY26E P/E, the TP is HK\$31.37. - **Earnings Revision**: The TP cut of 1.3% reflects a revised earnings outlook. ### Financial Metrics - **P/B Ratio**: 3.1x in FY26E, showing a gradual decline. - **Dividend Yield**: Expected to be 8% in FY26E. - **ROE**: Maintained at 35.4% in FY26E. - **Cash Flow**: Net cash from operations was RMB 909 million in FY26E. ## Risks - **Slower 5S VAS Growth**: Due to a slowdown in large flat-floor decoration. - **Social Security Cost Pressure**: May affect margins. - **Weaker Third-Party Expansion**: Could limit growth potential. ## Share Performance - **1-Month Return**: 6.7%. - **3-Month Return**: -4.4%. - **6-Month Return**: 5.7%. - **Market Cap**: HK\$6,633.8 million. - **Shareholding Structure**: - **Great Dragon Ventures Ltd**: 45.9%. - **HaoYu Ventures Ltd**: 12.9%. ## Analyst Recommendations - **Rating**: BUY. - **Target Price**: HK\$31.37. - **Reasoning**: The company's strong revenue growth, proactive cost management, and potential for future growth in the VAS segment support the BUY rating. ## Conclusion Binjiang Service continues to expand its basic PM business, maintaining a strong revenue and profit growth despite sector-wide margin pressures. The company's proactive cost-saving initiatives and strategic shift in the VAS segment are expected to drive future growth. The BUY rating is maintained based on its strong fundamentals and the potential for a 15% return over the next 12 months. Investors should be aware of the risks, including slower VAS growth and social security cost pressures, before making investment decisions.