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.