HK Stock Market Move | Property management stocks rebounded today. The cash level in the property management industry continues to rise. Institutions are optimistic about the industry's continued dividend potential for CKH HOLDINGS.

The property management stocks rebounded today. As of the time of writing, CHINA RES MIXC (01209) rose by 4.17% to HKD 34.95, ES SERVICES (01995) rose by 3.57% to HKD 1.74, SUNAC SERVICES (01516) rose by 3.21% to HKD 1.61, and CG SERVICES (06098) rose by 1.97% to HKD 6.72. Bank of America Securities released a research report stating that the cash level of China's property management industry rose by 6% last year, currently averaging 50% of its market share. The accumulation of cash may make the industry relatively more defensive in a market downturn, but it also indicates that property management companies lack investment opportunities. If the industry's free cash flow remains strong, the bank believes the industry can allocate funds through new investments, further improving shareholder returns, and potential privatization opportunities. CITIC SEC believes that the property services industry will see three major opportunities by 2025. Firstly, the gradual rationalization of pricing mechanisms will drive a policy inflection point for high-quality and fair-priced services, alleviating the increasing difficulty of collection and encouraging companies providing good services for good properties. Secondly, there will be a turning point in the quality of enterprise operations. The bank expects that by 2025, the contribution of cyclical business to the sector's performance will almost drop to 0, and provisions for goodwill and impairment of receivables will peak, with an expected sector performance growth rate of 9.7% and significantly improved earnings sustainability. Lastly, companies will continue to increase cash dividends. The bank believes that the sector's mid-term dividend payout ratio may reach 70%.