According to the Zhitong Finance app, property management stocks fell along with mainland real estate stocks. As of the time of writing, WM Cloud (02602) fell 4.59% to HKD 20.8, CG Services (06098) fell 3.36% to HKD 4.89, A-Living (03319) fell 3.15% to HKD 2.77, and Sunac Services (01516) fell 2.25% to HKD 1.74.

HTSC pointed out that the proportion of loss-making real estate companies in the interim report has reached a new high. Judging from the pre-disclosed interim performance of the industry, the overall performance of the industry has further lowered. The market's challenges to corporate performance have extended from private enterprises to state-owned enterprises, from medium-sized real estate developers to leading real estate developers. The bank believes that the overall performance of real estate companies is unlikely to see a turning point in the year due to the process of bottom building. However, the bank believes that high-energy region markets are expected to lead a positive cycle of volume and price, and endowment-type real estate enterprises focusing on core areas can benefit more from the previous recovery of these cities.

Tianfeng Securities pointed out that the growth path of leading state-owned enterprise (SOE) affiliated property management companies is clear, and their future scale is expected to maintain a good growth rate, while some property management companies affiliated with non-SOE are dragged down by affiliated parties and passively enhance their independence. Their development strategy will shift to improving long-term operational efficiency and exploring differentiated development paths. We believe that if the market stabilizes or affiliate sales performance exceeds expectations in 2024, these undervalued property management companies may have greater valuation elasticity.