Purchase suggestions:

The company is one of the fast-growing property management companies in China, managing properties in 28 cities, including Zhengzhou, Jinan, Xi'an, Chengdu, Suzhou, Beijing and Shanghai. The scope of business includes services provided to property developers, owners and tenants before and after delivery to enable them to enjoy community life, which can be divided into: (I) property management services; (ii) value-added services; and (iii) pre-delivery and consulting services. On the other hand, in order to further enhance work efficiency, expand the scope of services, and enhance the user experience of owners and residents, the company has used a comprehensive information technology system, including the OA system for automating the company's internal business operation and management functions, and the CRM system for integrated property management, as well as the mobile application "Xin Family" for owners and residents. As of December 31, 2018, the company has an area of about 15.7 million square meters under management, about 64% of which comes from Xinyuan Real Estate Co Ltd. The company has a compound growth rate of 21% from 2016 to 2018, and Xinyuan property Service Group ranked 12th among Chinese property management companies in 2018.

The company's PE estimates are around 12-18X, slightly lower than the current industry average. We believe that the real estate industry is more likely to slow down under the background of strict policy regulation, slower financing and higher cost of capital; while in the property management industry, under the expectation of rising labor costs, there will be some pressure on the sales and profit growth of companies in the industry, so it is recommended to apply carefully.