Equity Analysis /
China

CN : Property Management - Investor interest to return on policy

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

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    Steven MAK
    Will Chu
    CGS-CIMB
    18 April 2022
    Published byCGS-CIMB

    PMCs’ FY21 results were strong in general, with core net profit rising 59% yoy, primarily due to robust revenues given rapid managed GFA growth. PMCs are turning more conservative on MA this year and they will focus more on third-party expansion, VAS and the city services business. We see slower profit growth in the years ahead from Sunac Serv, Shimao Serv and A Living due to their developer parents’ liquidity problems. We expect to see more interest from investors in the sector due to policy support. Top picks: CGS, ES, KWG Living and Powerlong CM.