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<Research>M Stanley Favors CHINA RES MIXC/ GREENTOWN SER, Expects Continued Divergence Among CN Property Managers
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While Chinese property managers are still facing challenges like weakening collections and rising vacancy fees despite the fact that earnings drag from their related parties have largely dissipated, pressure from the weak macro environment and suboptimal service quality are accumulating on fees, Morgan Stanley wrote in its report. Morgan Stanley expected the industry's 2025-27 earnings to grow by 3%/ 5%/ 7% YoY, alongside revenue growth of about 5%. However, profit margins will be under pressure due to weakening collections. Within the industry, property management services are expected to be the main growth driver, while value-added services will remain sluggish. In terms of stock selection, Morgan Stanley recommended high-quality companies with a solid asset base. It tweaked up its target price for CHINA RES MIXC (01209.HK) from HKD46.38 to HKD48.93, with an Overweight rating. GREENTOWN SER (02869.HK) also received an Overweight rating, but its target price was slightly lowered from HKD5.78 to HKD5.54. Considering CG SERVICES (06098.HK) as a tactical choice, Morgan Stanley rated it as Equalweight and lifted its target price from HKD6.07 to HKD7.04. AAStocks Financial News |
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