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<Research>UBS: CN Property Managers' Interim Profit Growth Expected to Slow to 13%; Top Pick GREENTOWN SER (02869.HK)
Recommend 10 Positive 15 Negative 10 |
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Chinese property managers are expected to see a continued slowdown in 1H25 results, with average earnings growth slowing to 13% YoY, lower than 17% in 1H24 and 14% for 2024, compared to the market consensus of 15%, mainly dented by a slowdown in China's residential market, which resulted in slower growth in the number of square meters under management, a decline in the rate of property fee collection, reduced value-added services for developers and pressure on the gross profit margin from community value-added services, according to a research report released by UBS. The broker listed GREENTOWN SER (02869.HK) as its sector top pick, which is expected to post a 20% increase in interim earnings, outperforming its peers. CHINA RES MIXC (01209.HK)/ ONEWO (02602.HK)/ CHINA OVS PPT (02669.HK)/ POLY PPT SER (06049.HK) are expected to post 1H25 profit growth of 16%/ 11%/ 6%,/ 5% respectively. CG SERVICES (06098.HK)'s interim earnings are expected to fall by 12%. UBS upgraded GREENTOWN SER from Neutral to Buy, and added its target price from $4.5 to $5.7, as the broker believed that the stock, with its independent operation mode, will be less weighed down by its parent company. UBS also raised its 2025-2027 core profit forecasts for CHINA RES MIXC by a maximum of 3%, and expected its interim results to benefit from retail sales and rental growth. Therefore, the broker lifted its target price from $30 to $38, with rating reiterated at Neutral. AAStocks Financial News Website: www.aastocks.com |
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