Lyon: Maintain CHINA OVS PPT (02669) "outperform" rating, target price lowered to 5.5 Hong Kong dollars.

Lyon released a research report stating that it is lowering the target price of CHINA OVS PPT (02669) from 6.1 Hong Kong dollars to 5.5 Hong Kong dollars. It maintains an "outperform" rating. Despite a stable growth in revenue last year, an unfavorable market environment has led to a narrowing profit margin and decreased profits for the company. The bank expects that with the support of the parent company CHINA OVERSEAS and the ability to acquire third-party projects, the business of CHINA OVS PPT will continue to grow, but at a slower pace. Considering the unfavorable operating environment, the company's profit forecast for 2026 and 2027 has been lowered by 19.9% and 19.1%, respectively. The company's revenue increased by 6% year-on-year, but the gross profit margin decreased by 1.6 percentage points due to price pressures and a slowdown in the conversion rate of property management business contracts. Net profit fell by 9.7% year-on-year to 1.4 billion RMB. Taking into account special dividends, the annual dividend is 0.2 Hong Kong dollars, an increase of 11.1% year-on-year. Management has expressed willingness to gradually increase the dividend payout ratio.