[Brokerage Focus] CITIC SEC expects that the Property Service industry will encounter three major opportunities in 2025.

Jingu Financial News · Apr 8 19:39

Jinwu Financial News | CITIC Securities believes that the property services industry will usher in three major opportunities in 2025. The first is an inflection point in the policy of gradually rationalizing the price mechanism and promoting high quality and high prices. It is expected that the current situation where seizure difficulties are increasing may ease, and enterprises that provide good services for good houses are more encouraged by the policy; the second is the inflection point in the quality of enterprise operations. The bank expects the contribution of cyclical business (service developers) to the sector's performance to drop to almost zero in 2025, peaking in the calculation of goodwill and impairment receivables. The sector's performance is expected to grow at 9.7%, and profit sustainability is expected to increase significantly. Finally, the company continues to increase cash dividends. The bank believes that the dividend payment rate for the sector in the medium term (2027) may reach 70%. At that time, the dividend rate can reach 9.6% based on the current market value. The bank expects the dividend payment rate in 2025 to increase slightly from 2024 to 66%, with an average dividend rate of 7.6% in 2025. Taken together, the bank is optimistic about the sector's continued growth and dividend attributes.

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