We estimate our PMCs’ net profit rose just 10% for 1H22F, the slowest since 2019, due to less contribution from developers and community VAS. We believe GPM fell 2.5% pts yoy in 1H22F due to a higher proportion of low-GPM 3P contracts and slow revenue growth from high-GPM VAS. PMCs may recognise impairment provisions on troubles faced by distressed developer parents. Investors are also worried about corporate governance. Be selective despite sector OW; top picks: CGS, CIFI ES, COPL.