Shares of CG SERVICES (06098) climbed more than 5% in Thursday morning trade following the release of its interim results. At the time of writing, the stock was up 5.47% at HK$5.78, with turnover reaching HK$40.23 million.

On August 26, the company posted its 2026 interim figures, with revenue of approximately RMB 24.5 billion, reflecting a 5.7% year-on-year increase. Profit attributable to shareholders stood at around RMB 950 million, down 4.6% from the prior year, while core net profit attributable to shareholders rose 3.2% to RMB 1.62 billion. Basic earnings per share came in at RMB 29.16 cents.

According to the announcement, the revenue growth was primarily driven by increases across the group's property management services, community value-added services, and its "Three Supplies and One Service" business. As of June 30, 2026, the group's fee-based managed area, excluding the "Three Supplies and One Service" segment, reached approximately 1.096 billion square meters.

Analysts at CICC noted that CG SERVICES' core operations demonstrated solid performance. The property management segment, which comprises about 70% of total revenue, contributed over 90% of the revenue increment while achieving a slight 0.2 percentage point year-on-year improvement in gross margin. Within this segment, property management services delivered 6% revenue growth and 7% gross profit growth, while community value-added services posted 18% revenue growth and 12% gross profit growth.

Furthermore, the company secured RMB 1.3 billion in new annualized contract value during the period, representing a 53% year-on-year increase. The group also maintained disciplined cost control, with selling and administrative expenses declining 9% year-on-year.