The Zhitong Finance App learned that property management stocks declined along with domestic housing stocks today. As of press release, Sunac Services (01516) fell 4.31% to HK$2; Poly Property (06049) fell 2.57% to HK$28.45; Ya Lifestyle Services (03319) fell 2% to HK$3.43; and Country Garden Services (06098) fell 0.75% to HK$6.62.

According to the news, Morgan Stanley published a report. 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 lower growth in third-party and community value-added services, and the normalization of profit margins.

According to Damo, considering the asset-light and recurring revenue business model of property management companies, gradual independence and improved profit quality, profit adjustments should be generally completed after the 2023 results, and potential dividend increases, it is still believed that the industry is attractive, but under the challenges of the recovery of the property market, the overall sentiment may remain weak. The bank believes that the performance of property management companies will be further divided, that state-owned companies will expand according to schedule, that semi-state companies will lag behind, and that the area managed by most private companies will be reduced by additional third parties.