Property management stocks declined today along with domestic housing stocks. As of press release, Wanwuyun (02602) fell 5.13% to HK$17.4; Ya Life Services (03319) fell 4.01% to HK$2.87; Country Garden Services (06098) fell 3.35% to HK$4.61; and Evergrande Properties (06666) fell 3.03% to HK$0.48.
The Zhitong Finance App learned that property management stocks fell along with domestic housing stocks today. As of press release, Wanwuyun (02602) fell 5.13% to HK$17.4; Ya Life Services (03319) fell 4.01% to HK$2.87; Country Garden Services (06098) fell 3.35% to HK$4.61; Evergrande Properties (06666) fell 3.03% to HK$0.48.
According to the news, on April 10, Moody's downgraded the corporate family rating of Metro Holdings from “B2” to “Caa1”; it also downgraded the senior unsecured rating of supporting bonds issued by Metro Global and guaranteed by Metro Development and Metro Holdings from “B3” to “Caa2.” On April 11, the international rating agency Standard & Poor's announced that it would downgrade the long-term issuer credit rating of Chinese real estate giant Vanke Enterprise Co., Ltd. from “BBB+” to “BB+,” with a “negative” outlook.
CMB International pointed out that property management companies have increased their dividend payout ratio for the full year of 2023. In a context where the macroeconomy has not been clearly repaired, the visibility of the company's performance is lower than before, so investors are more inclined to obtain timely returns, so increasing the dividend ratio has repaired property management stock valuations to a certain extent. However, we believe that the problems commonly faced by the industry, such as a sharp decline in value-added business for non-owners, depreciation of accounts receivable, and shrinking gross margins due to increased competition between the three parties, have not yet been clarified, and will still take time to observe.