Company Coverage
China Resources Mixc Lifestyle Services (1209 HK): 1H26 Results Preview: In-Line Double-Digit Earnings Growth, Commercial-Led Margin Uplift
BUY (Maintained)
Current price:
Target price:
Upside:
HK$38.84
HK$55.00
+41.6%
Analyst
Analyst
Highlights
- We expect CR Mixc's 1H26 results to be in line with estimates, with core net profit maintaining double-digit yoy growth and revenue up by high single digits yoy, slightly below profit growth. Gross margin is expected to edge up, led by the commercial segment.
- Mall retail sales rose by high double digits yoy in 1H26 (same-store: high single digit), with luxury malls outperforming. The company plans to open 12 new malls this year (10 in 2H26) and sign 20 new malls in 2026.
- VAS revenue is still expected to decline yoy, but the pace of decline should narrow. We expect dividend policy to remain unchanged at a 100% payout (60% regular + 40% special), We expect 1H26 OCF to remain seasonally low, with the interim OCF/core net profit ratio at 60-70%, while the full-year ratio is expected to remain above 1.0x. Maintain BUY. Target price: HK$55.00.
Analysis
- 1H26 on track with double-digit profit growth intact. We expect China Resources Mixc Lifestyle Services’ (CR Mixc) 1H26 results to be in line with its full-year target of double-digit net profit growth. We expect total revenue to grow at a high single-digit pace, slightly below profit growth, while gross profit margin should edge up modestly, led by the commercial segment. Overall, the property management segment is expected to provide stable revenue growth, and the commercial business should be the main growth and margin driver.
- Shopping mall business should remain resilient. We expect total retail sales across CR Mixc malls to have grown by high double digits yoy in 1H26, with same-store sales (SSS) up by high single digit yoy and luxury malls outperforming the overall portfolio. In June alone, overall retail sales grew mid-single digit yoy while SSS dipped slightly, dragged by auto sales (a fixed-rent format that affects retail sales only). On new mall openings, we expect the company to open 12 new malls in 2026. We estimate that two malls were opened in 1H26, leaving the rest to be opened in 2H26. On mall expansion, it secured seven third-party projects in 1H26, and parent CR Land contributed five malls. We expect CR Mixc to sign 20 new malls in 2026 (vs 13 malls in 2025).
Highlights
- We expect CR Mixc's 1H26 results to be in line with estimates, with core net profit maintaining double-digit yoy growth and revenue up by high single digits yoy, slightly below profit growth. Gross margin is expected to edge up, led by the commercial segment.
- Mall retail sales rose by high double digits yoy in 1H26 (same-store: high single digit), with luxury malls outperforming. The company plans to open 12 new malls this year (10 in 2H26) and sign 20 new malls in 2026.
- VAS revenue is still expected to decline yoy, but the pace of decline should narrow. We expect dividend policy to remain unchanged at a 100% payout (60% regular + 40% special), We expect 1H26 OCF to remain seasonally low, with the interim OCF/core net profit ratio at 60-70%, while the full-year ratio is expected to remain above 1.0x. Maintain BUY. Target price: HK$55.00.
Analysis
- 1H26 on track with double-digit profit growth intact. We expect China Resources Mixc Lifestyle Services’ (CR Mixc) 1H26 results to be in line with its full-year target of double-digit net profit growth. We expect total revenue to grow at a high single-digit pace, slightly below profit growth, while gross profit margin should edge up modestly, led by the commercial segment. Overall, the property management segment is expected to provide stable revenue growth, and the commercial business should be the main growth and margin driver.
- Shopping mall business should remain resilient. We expect total retail sales across CR Mixc malls to have grown by high double digits yoy in 1H26, with same-store sales (SSS) up by high single digit yoy and luxury malls outperforming the overall portfolio. In June alone, overall retail sales grew mid-single digit yoy while SSS dipped slightly, dragged by auto sales (a fixed-rent format that affects retail sales only). On new mall openings, we expect the company to open 12 new malls in 2026. We estimate that two malls were opened in 1H26, leaving the rest to be opened in 2H26. On mall expansion, it secured seven third-party projects in 1H26, and parent CR Land contributed five malls. We expect CR Mixc to sign 20 new malls in 2026 (vs 13 malls in 2025).
BUY (Maintained)
Current price:
Target price:
Upside:
HK$38.84
HK$55.00
+41.6%
Analyst
Analyst
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