A research report indicates that key property management companies showed modest financial improvement in H1 2025, with net profit attributable to parent companies turning positive. Despite cautious expansion during the period, management efficiency remained stable, and valuations lifted due to stock price recovery, though still remaining in the long-term bottom region. As companies reduce reliance on affiliated entities and focus on third-party expansion and cost optimization, valuations are expected to continue rising. As of September 4, 2025, the average PE ratio for key property management companies in 2025 was 10.52x, corresponding to an average PEG ratio of 1.09x.

**22 Key Property Management Companies Show Modest Financial Improvement, Net Profit Attributable to Parent Turns Positive**

Under economic pressure, the industry's revenue growth rate slightly recovered in H1 2025, with 22 tracked listed property management companies (referred to as key property companies) achieving revenue growth of 4.4% year-over-year. Among large enterprises, the top 1-5 companies recorded the highest growth rate of 7.5%. Consequently, net profit attributable to parent companies of key property management companies turned positive in H1 2025, increasing 32.1% year-over-year. Specifically, companies ranked 6-10 achieved the highest growth rate, turning from losses to profits, while companies ranked 21-22 recorded the largest average losses of 145 million yuan.

The average gross margin of key property management companies in H1 2025 was 21.5%, down 1.67 percentage points year-over-year. During the same period, most key property companies' receivables were lower than revenue, showing slight improvement in collection conditions. Corporate goodwill scale primarily decreased.

As of September 4, 2025, the average interim dividend yield of key property companies reached 1.03%, with 2 companies having dividend yields above 4%: Jinmao Services at 4.92% and ONEWO at 4.18%.

**22 Key Property Management Companies Adopt Cautious Expansion, Operational Management Efficiency Remains Stable**

Constrained by the economic environment, the growth rate of managed area by key property companies continued to decline. In H1 2025, the average growth rate of managed area was 4%. Some companies maintain high contract/managed area ratios, providing potential for future management area growth.

In H1 2025, certain commercial and office properties continued to demonstrate significant unit efficiency, with commercial and office building companies achieving unit area revenue exceeding 50 yuan per square meter, including Xingsheng Commercial and Powerlong Commercial Management.

Quality commercial management companies expanded modestly in H1 2025, with CHINA RES MIXC adding 6 new managed shopping centers. Occupancy rates remained relatively stable during the period, with CHINA RES MIXC, Xingsheng Commercial, and Powerlong Commercial Management achieving average occupancy rates of 97.1%, 92.5%, and 91.8% respectively. In terms of unit commercial management service revenue, CHINA RES MIXC recorded the highest at 1.73 yuan per square meter in H1 2025.

**Stock Prices and Valuations of 22 Key Property Management Companies Rise Since 2025**

Property management company stock prices have recovered somewhat this year, with valuations also lifting, though still remaining in the long-term bottom region with potential for long-term upward movement. As of September 4, 2025, the average PE ratio for key property companies in 2025 was 10.52x, corresponding to an average PEG ratio of 1.09x. Using market cap/contract area and market cap/managed area metrics, the averages for key property companies were 0.61x and 0.69x respectively, remaining at relatively low levels.

As the influence of affiliated companies on property management enterprises continues to weaken, the safety of key property companies continues to improve. From the perspective of gains since 2025, 14 property management companies have shown varying degrees of increases, while only 8 companies experienced declines.

**Investment Targets** A-shares: China Merchants Shekou Industrial Zone Holdings (001914.SZ), New Direct Group (002968.SZ) H-shares: CHINA RES MIXC (01209), ONEWO (02602), CHINA OVS PPT (02669), POLY PPT SER (06049), Country Garden Services (06098), Yuexiu Services (06626), Sunac Services (01516).

22 key property management companies showed modest financial improvement with net profit attributable to parent turning positive.

**Risk Factors** Managed area expansion below expectations, rising labor costs, mergers and acquisitions below expectations, value-added services expansion below expectations, policy risks.