Red Star Macalline 9-month revenue falls on decrease in number of shopping malls

Overview

• China home improvement mall operator's 9-month revenue declined year-over-year

• Company returned to profit, with net income attributable to owners turning positive after prior-year loss

• Lower revenue mainly due to fewer shopping malls and reduced investment in non-core segments

Outlook

• Company did not provide specific guidance for future quarters or full year in its press release

Result Drivers

• SHOPPING MALL REDUCTION - Co said revenue decline was mainly due to a decrease in the number of shopping malls and fewer projects in construction and decoration services

• OCCUPANCY RATE IMPROVEMENT - Co said occupancy rate and operating quality of individual shopping malls improved compared with last year

• FAIR VALUE LOSS REDUCTION - Co said loss on fair value change of investment properties fell sharply due to stabilized leasing business and expectations for future rental prices

Key Details

Analyst Coverage

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

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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.)