Jinwu Financial News | Property management stocks are mostly improving. Kaishaoye Mei (02168) rose 12.26%, Xinchengyue Service (01755) rose 5.15%, China Resources Vientiane Life (01209) rose 4.07%, Country Garden Service (06098) rose 3.28%, Wanwuyun (02602) rose 3.09%, and Ya Life Service (03319) rose 3.02%.
According to a recent CMB International research report, looking back at 24 years, the bank saw that real estate stocks that outperformed the industry were mainly targets of “reversal of difficulties” and targets of “bottoming out” targets, while property stocks were mainly targets of “outstanding expansion capacity” and “parent company's difficult situation reversal.” Although the sales side showed initial recovery, industry inventories are still at historically high levels, and it will still take time to implement some key policies, so the bank believes that there are no signs that the fundamentals of the industry have bottomed out. According to the bank, the retail business first benefited compared to the development business when the economy stabilized and recovered. From a service perspective, property management is a long-term beneficiary of the stock market.
Everbright Securities said earlier that looking ahead to 2025, the property management sector has a balanced allocation value of “attacking and defensible”. The Fed's interest rate cuts will bring more abundant market liquidity. The policy mix is favorable, and real estate can be expected to stop falling and stabilize, which will help property management stocks to improve their valuations; in the medium to long term, property companies will gradually lose their “real estate attributes” and enhance their “service consumption” attributes. It is a “cash cow” industry, which has the characteristics of light assets, low leverage, low capital expenses, and high dividends. It can provide relatively stable dividend payouts, and the allocation value is outstanding.
