HK Stock Market Move | SUNAC SERVICES (01516)5% Morgan Stanley Property management stocks rose with the real estate market, SUNAC SERVICES (01516) increased by over 5%. Morgan Stanley predicts that the overall performance of property management companies is in line with expectations.

The real estate stocks in the morning session surged, with property management stocks following suit. As of the time of writing, SUNAC SERVICES (01516) rose by 5.67% to 1.49 Hong Kong dollars; JINMAO SERVICES (00816) rose by 4.67% to 2.69 Hong Kong dollars; GREENTOWN SER(02869) rose by 4.88% to 4.51 Hong Kong dollars; and ONEWO (02602) rose by 4.01% to 19.44 Hong Kong dollars. CICC released a research report stating that it is expected that the average year-on-year revenue growth of major property management companies by 2025 will be 6%, with overall profit margins remaining relatively stable and core net profit increasing by an average of 4% year-on-year. It is projected that the dividend payout ratio for each company will be between 30% and 75%, corresponding to an average dividend yield of 5.5%. Morgan Stanley predicts that the overall performance of covered mainland property management companies last year should generally meet expectations, with profit growth in the low single digits but with increasing differentiation. Morgan Stanley believes that the short-term profit margins of property management and service companies are still under pressure, but with leading specialist management companies exiting low-quality and non-core projects to optimize business portfolios, the annual operating cash flow should remain at around 1 times profit.