Property management stocks declined along with domestic housing stocks. As of press release, Xincheng Yue Service (01755) fell 4.76% to HK$3.2; Sunac Services (01516) fell 3.55% to HK$1.9; Times Neighborhood (09928) fell 3.06% to HK$0.475; and Country Garden Services (06098) fell 2.45% to HK$6.38.
The Zhitong Finance App learned that property management stocks declined along with domestic housing stocks. As of press release, Xincheng Yue Service (01755) fell 4.76% to HK$3.2; Sunac Services (01516) fell 3.55% to HK$1.9; Times Neighborhood (09928) fell 3.06% to HK$0.475; and Country Garden Services (06098) fell 2.45% to HK$6.38.
Morgan Stanley published a report that the target price of property management stocks was lowered by an average of 17%, and the profit forecast for 2023-2024 was lowered by 3% and 6% respectively to reflect the slowdown in the expansion of the area managed by third parties, the slowdown in the growth of value-added community services, and the stabilization of profit margins.
The bank pointed out that the profit reset of mainland property management stocks is generally complete, but it is necessary to wait for sales in the property market to stabilize before the industry climate improves. It is estimated that the property market will be weak in the first half of next year and will remain flat in the second half of the year. First-class property sales will increase 5% year on year throughout the year, and completion volume will decrease by 5%. The performance of state-owned and private property management companies is further divided. State-owned companies will expand according to schedule, quasi-state companies will lag behind, and most private companies will have less space under management by additional third parties.