Glonghui, April 15 | Morgan Stanley released a report stating that the core net profit of the covered mainland property management companies increased by an average of 14% year-on-year last year, better than expected. The bank noticed an improvement in dividend payout ratios and stock buybacks, and the profits of the covered companies are expected to rebound from bottom. According to the bank, despite facing macroeconomic challenges, the profits of the covered companies are expected to increase by 13% in fiscal year 2024, with an average dividend ratio of 6%. The bank chose China Resources Vientiane Life and Poly Ventures, and also raised Greentown's service rating from “synchronizing with the market” to “increasing holdings”, and the target price was raised from HK$3.46 to HK$4.38. The bank believes that the profit reset of the covered companies has basically been completed, and that the gross profit contribution of DVAS (developer value-added services) and non-recurring businesses is 11%. Private enterprises may record further impairment in related parties' accounts receivable and goodwill, but since the impairment is non-cash and most companies' dividends are based on core profits, it believes that the impact of impairment is limited. Furthermore, state-owned enterprises have an advantage in third-party expansion.