CR Mixc’s FY24 revenue rose 15% YoY to RMB 17bn, missing guidance by 3%, mainly dragged down by value-added services (VAS). Net profit went up 24% YoY to RMB 3.6bn, beating guidance by 4%, driven by higher revenue contribution from shopping mall biz with high gross margin (~73%) and effective cost control bringing a lower SG&A ratio. The company guided a double-digit NP growth in FY25E, and we estimate a 21%+ core net profit growth is needed to meet 14th FYP targets. It declared a 100% dividend payout based on core net profit, raising the basic payout ratio to 60% (from 55% in FY23). We like company’s 1) stable growth in basic PM under parentco’s support, 2) fast- growing shopping mall operations (>54% GP contribution) and 3) solid third- party expansion etc. We maintain BUY with TP of HK$45.3 based on 22x 2025E P/E given its leading position in the industry and strong commercial operation biz.Our TP revised down 4% to reflect the downward adjustment on earnings estimates and a lowered growth projection for the industry.
　　VAS dragged revenue; shopping malls biz continued shining. Overall revenue rose 15% YoY to RMB 17bn, missing guidance by 3%, due to a 12% YoY decline in non-owner VAS amid slowing demand and a 6% YoY increase in owner VAS, hindered by a 19% YoY drop in brokerage biz, while shopping mall revenue jumped 30% YoY, benefiting from stable existing operations and more openings (21 in FY24 vs. 15 in FY23). Urban space revenue surged 36% YoY, driven by a 20% YoY increase in managed GFA and higher collection rates (91.5% in FY24 vs. 87.9% in FY23). Net profit climbed 24% YoY to RMB 3.6bn, exceeding guidance by 4%, thanks to 1) a 1ppt gross margin increase to 32.9%, driven by the higher contribution from shopping mall operations (28.1% of revenue, up 3.4ppt), and 2) effective cost control lowering the SG&A ratio by 1ppt to 7.4%.
　　FY25 guidance: double-digit NP growth. The company aims for double- digit net profit growth in FY25. However, to meet the target of a ~40% CAGR of core net profit during the 14th Five-Year Plan period (2021-2025), the growth rate in FY25 needs to reach at least 21%. We estimate that the company's FY25E revenue and net profit will grow by 16%/19% YoY.
　　The 100% dividend payout once again wows the market. The company raised base dividend payout ratio from 55% in FY23 to 60% in FY24 and offered a 40% special dividend, bringing total dividends to 100% of core net profit. Against the latest closing price, the dividend yield hit 4.8%. The company has maintained 100% div. payout for two consecutive years, signalling strong commitment to shareholder returns.