China's Country Garden Services interim profit falls on impairment losses

Country Garden Services Holdings

26/08/2026 05:20

Overview
China property management firm's interim revenue grew 5.7% yr/yr to RMB24.5 bln
Net profit for the period declined 5.4% yr/yr
Company repurchased 34.995 mln shares, cancelling 24.124 mln shares

Outlook
Company did not provide specific guidance or outlook for the current or future periods

Result Drivers
GFA EXPANSION - Revenue growth attributed to increase in revenue-bearing gross floor area managed outside the 'Three Supplies and Property Management' business
COST CONTROL - Ratio of general and administrative expenses to revenue declined by 1.3 percentage points
IMPAIRMENT LOSSES - Higher net impairment losses on financial and contract assets weighed on profit

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 24.50 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the real estate services peer group is "buy"
Wall Street's median 12-month price target for Country Garden Services Holdings Co Ltd is HK$7.00, about 26.2% above its August 25 closing price of HK$5.55
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Aug 25 - China's Redsun Services H1 profit drops amid weakness in real estate sector
Aug 25 - China's Poly Property Services H1 revenue rises 5.2% on property management services growth
Aug 24 - Yuexiu Services' H1 revenue falls amid property sector slowdown

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)