Equity Analysis /

CN : Property Management - Investor interest to return on policy

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Steven MAK
    Will Chu
    18 April 2022
    Published by

    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.