On July 9, 2019, Ever Sunshine Lifestyle Services issued its mid-2019 earnings announcement. According to the announcement, the net profit growth of the company is expected to exceed 90% in mid-2019, thanks to the increase of management area and the rapid growth of value-added service income from owners and non-owners.
At present, "four-wheel drive" is becoming an effective way to drive Yongsheng's rapid and high-quality growth: as a property management company separated from Xuhui Group, it will enjoy the dividend of Xuhui Group's rapid growth for a long time. According to Xuhui Group's announcement, it completed about 34% sales growth in the first half of 2019; Yongsheng and Shandong Dezhou in the first half of 2019. Trading and Investment Group and Binzhou Huizhong Finance Investment Group have established strategic cooperative relations and will provide property management services for their development projects in the future; after acquiring Qingdao Yayuan, a property management service provider under Xindi Group in June, Yongsheng has obtained a number of core landmark business office service projects such as Hongqiao Xindi Center, Hongqiao International Exhibition, No. 9 Donghai Road, Qingdao and so on; Yongsheng, who has always been a competitive bidder for projects, has also won a number of high-quality service projects, including Wuxi Jibao Jijing Mingdi, Shanghai Meian Qiting, and so on.
▲Part of representative projects of Qingdao Yayuan
On the same day, CICC issued its first coverage of Yongsheng Service with a positive rating and a target price at HK$4.5, which corresponded to an upside of nearly 40%. Zhang Yu and Wang Yiyu, analysts of CICC, said that Yongsheng Service was a fast and powerful player in area expansion and diversified value-added service; in the next three years, the compound growth rate of managed area is expected to exceed 38%; the company has achieved a balance of profits on the basis of adhering to the service standard; the trend of excellent performance of community value-added services is expected to continue.
In addition to CICC, Guotai Jun’an, Guohai Securities, Agricultural Bank International, Guoxin Hong Kong, CITIC Construction Investment, Haitong International and other securities companies have issued coverage reports on Yongsheng Service all with buy ratings.