The Zhitong Finance App learned that BOC International released a research report stating that it lowered the target price of CNOOC Properties (02669) by 16.7%, from HK$6.3 to HK$5.25, maintaining the “buy” rating. The bank said it believes the size of the company will continue to grow moderately, but it is still facing pressure from industrial adjustments in the short term, so it has lowered its revenue and profit forecasts. The bank believes that with its central enterprise background, brand, sound financial position and forward-looking layout in the field of non-residential and urban services, the company can continue to strengthen its long-term competitive barriers to wait for the industry to recover.
In the first half of 2026, CNOOC Property achieved operating revenue of 7.485 billion yuan (same below), an increase of 4.5% over the previous year. Faced with the challenges of economic fluctuations and increased competition in the property management industry, gross margin decreased by 2.0 percentage points per year to 14.9%. Profit attributable to shareholders was 701 million yuan, a year-on-year decrease of 9%, which was basically in line with market expectations, and the return on shareholders' equity remained at a high level of 23.2%. The company proposes to distribute an interim dividend of HK10 cents per share, up 11.1% from the same period last year. The corresponding dividend ratio is about 43%, an increase of about 8 percentage points over the first half of 2025.
Approximately 2,497 billion yuan was signed during the period, adding 37 million square meters of managed area, of which 85.9% came from an independent third party. By the end of June 2026, the total area under management reached 495.4 million square meters, an increase of 3.7% over the end of last year. The business structure continues to be optimized, with non-residential projects accounting for 76.8% of the new area, of which urban services account for 61.1%.
During the period, due to the rigid rise in labor costs and active optimization and withdrawal of some projects, the company's gross margin fell from 16.9% in the same period last year to 14.9%, and gross profit decreased 8% year on year to 1,113 billion yuan. The company partially offset these pressures through cost control and cost optimization. The company holds approximately $5.733 billion in cash and bank balances and has no bank loans. Operating cash flow performance was steady, and the level of provision for accounts receivable fell to 9.6% from 11.1% at the end of last year.