M Stanley Raises ONEWO Rating to Overweight; CN Managers' First Half Results Indicate Initial Signs of Stability
Chinese Property Managers' Performance: Morgan Stanley reports early signs of stability in Chinese property managers for 1H25, predicting industry growth in 2H25 with YoY earnings growth of 4%/9%/11% for 2025-27.
Stock Ratings Adjustments: Morgan Stanley upgraded ONEWO's rating to Overweight and increased its target price, while downgrading SUNAC SERVICES to Underweight due to poor earnings prospects, with other stocks like CHINA OVS PPT and CG SERVICES adjusted to Equalweight.
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M Stanley Anticipates CN Property Managers' 2025 Performance to Align Closely, with CHINA RES MIXC and GREENTOWN SER Projected to Achieve Highest Profit Growth
Morgan Stanley's Predictions: The research report indicates that Chinese property managers are expected to meet profit growth expectations, with low single-digit increases and greater differentiation among companies.
Top Performers: GREENTOWN SER and CHINA RES MIXC are projected to achieve the highest profit growth of 10-15% year-over-year, while POLY PPT SER and CHINA OVS PPT are expected to see mid-single-digit growth.
Challenges for Some Companies: CG SERVICES and SUNAC SERVICES may experience declines in core profits due to issues with past project receivables and non-core business impacts.
Impairment Risks: Most companies have largely eliminated impairment risks from related parties, except for ONEWO, which still faces some risk.
M Stanley Predicts CN Property Managers' 2025 Performance Will Align with Expectations, Anticipates Strongest Profit Growth for CHINA RES MIXC and GREENTOWN SER
Morgan Stanley's Predictions: The research report from Morgan Stanley indicates that Chinese property managers are expected to meet profit growth expectations, with low single-digit increases overall.
Top Performers: GREENTOWN SER and CHINA RES MIXC are projected to achieve the highest profit growth of 10-15% year-over-year, while POLY PPT SER and CHINA OVS PPT are expected to see mid-single-digit growth.
Challenges for Some Companies: CG SERVICES and SUNAC SERVICES may experience declines in core profits due to past project receivable issues and non-core business impacts.
Impairment Risks: Most companies have cleared impairment risks from related parties, except for ONEWO, which still faces some challenges.
<Study> JPM Ratings and Target Prices for Chinese Developers/Managers (Table)
JPMorgan's Ratings for Chinese Developers: JPMorgan has assigned "Overweight" ratings to several Chinese developers, including China Res Land and China Overseas, with target prices ranging from HKD 1.75 to HKD 35, while some companies like Country Garden and Sunac are rated "Underweight."
JPMorgan's Ratings for Chinese Managers: The investment bank also rates various Chinese property management firms, with "Overweight" ratings for China Res Mixc and Poly PPT Ser, while Sunac Services and A-Living are rated "Underweight," indicating a cautious outlook.
<Study> JPM Ratings and Target Prices for Chinese Developers/Property Managers (Table)
State-owned Enterprises Performance: CHINA RES LAND, CHINA OVERSEAS, and CHINA JINMAO are rated as overweight, with varying short selling ratios and target prices, while CHINA JINMAO experienced a slight decline in share price.
Private Enterprises Overview: CHINA VANKE and LONGFOR GROUP are rated underweight and overweight respectively, with CHINA VANKE showing a modest increase in share price, while COUNTRY GARDEN and SUNAC are also rated underweight with minimal price changes.
Property Managers Insights: CHINA RES MIXC and POLY PPT SER are highlighted as overweight with significant price increases, while other property managers like CG SERVICES and A-LIVING have mixed ratings and short selling ratios.
Market Analysis Commentary: JPMorgan notes that mortgage subsidies alone may not be sufficient to revitalize the Chinese property market, indicating a cautious investor sentiment without significant overreactions observed.
<Study> JPM Ratings and Target Prices for Chinese Developers and Managers (Table)
Stock Performance Overview: Several Chinese real estate stocks experienced declines, with CHINA RES LAND and CHINA OVERSEAS showing significant short selling ratios of 24.713% and 25.553%, respectively.
Market Sentiment: Analysts remain cautious about the Chinese property market, with recommendations favoring CHINA RES MIXC as a top pick amidst signs of further weakening in the sector.
<M Stanley Ratings: Target Prices for Chinese Property Managers (Table)>
Stock Performance: Various Hong Kong stocks showed positive movements, with A-LIVING up 3.03%, CG SERVICES up 4.11%, and GREENTOWN SER up 4.29%.
Short Selling Data: Significant short selling activity was noted, with ratios ranging from 3.615% to 27.161% across different companies, indicating varying levels of market skepticism.
Rating Changes: Several companies experienced changes in their ratings, with CG SERVICES upgraded from Underweight to Equalweight and SUNAC SERVICES downgraded from Equalweight to Underweight.
Target Price Adjustments: Target prices for several stocks were adjusted, with notable increases for CHINA RES MIXC and POLY PPT SER, reflecting positive market sentiment.
M Stanley Anticipates CN Property Managers' 2025 Performance to Align Closely, with CHINA RES MIXC and GREENTOWN SER Projected to Achieve Highest Profit Growth
Morgan Stanley's Predictions: The research report indicates that Chinese property managers are expected to meet profit growth expectations, with low single-digit increases and greater differentiation among companies.
Top Performers: GREENTOWN SER and CHINA RES MIXC are projected to achieve the highest profit growth of 10-15% year-over-year, while POLY PPT SER and CHINA OVS PPT are expected to see mid-single-digit growth.
Challenges for Some Companies: CG SERVICES and SUNAC SERVICES may experience declines in core profits due to issues with past project receivables and non-core business impacts.
Impairment Risks: Most companies have largely eliminated impairment risks from related parties, except for ONEWO, which still faces some risk.
M Stanley Predicts CN Property Managers' 2025 Performance Will Align with Expectations, Anticipates Strongest Profit Growth for CHINA RES MIXC and GREENTOWN SER
Morgan Stanley's Predictions: The research report from Morgan Stanley indicates that Chinese property managers are expected to meet profit growth expectations, with low single-digit increases overall.
Top Performers: GREENTOWN SER and CHINA RES MIXC are projected to achieve the highest profit growth of 10-15% year-over-year, while POLY PPT SER and CHINA OVS PPT are expected to see mid-single-digit growth.
Challenges for Some Companies: CG SERVICES and SUNAC SERVICES may experience declines in core profits due to past project receivable issues and non-core business impacts.
Impairment Risks: Most companies have cleared impairment risks from related parties, except for ONEWO, which still faces some challenges.
<Study> JPM Ratings and Target Prices for Chinese Developers/Managers (Table)
JPMorgan's Ratings for Chinese Developers: JPMorgan has assigned "Overweight" ratings to several Chinese developers, including China Res Land and China Overseas, with target prices ranging from HKD 1.75 to HKD 35, while some companies like Country Garden and Sunac are rated "Underweight."
JPMorgan's Ratings for Chinese Managers: The investment bank also rates various Chinese property management firms, with "Overweight" ratings for China Res Mixc and Poly PPT Ser, while Sunac Services and A-Living are rated "Underweight," indicating a cautious outlook.
<Study> JPM Ratings and Target Prices for Chinese Developers/Property Managers (Table)
State-owned Enterprises Performance: CHINA RES LAND, CHINA OVERSEAS, and CHINA JINMAO are rated as overweight, with varying short selling ratios and target prices, while CHINA JINMAO experienced a slight decline in share price.
Private Enterprises Overview: CHINA VANKE and LONGFOR GROUP are rated underweight and overweight respectively, with CHINA VANKE showing a modest increase in share price, while COUNTRY GARDEN and SUNAC are also rated underweight with minimal price changes.
Property Managers Insights: CHINA RES MIXC and POLY PPT SER are highlighted as overweight with significant price increases, while other property managers like CG SERVICES and A-LIVING have mixed ratings and short selling ratios.
Market Analysis Commentary: JPMorgan notes that mortgage subsidies alone may not be sufficient to revitalize the Chinese property market, indicating a cautious investor sentiment without significant overreactions observed.
<Study> JPM Ratings and Target Prices for Chinese Developers and Managers (Table)
Stock Performance Overview: Several Chinese real estate stocks experienced declines, with CHINA RES LAND and CHINA OVERSEAS showing significant short selling ratios of 24.713% and 25.553%, respectively.
Market Sentiment: Analysts remain cautious about the Chinese property market, with recommendations favoring CHINA RES MIXC as a top pick amidst signs of further weakening in the sector.
<M Stanley Ratings: Target Prices for Chinese Property Managers (Table)>
Stock Performance: Various Hong Kong stocks showed positive movements, with A-LIVING up 3.03%, CG SERVICES up 4.11%, and GREENTOWN SER up 4.29%.
Short Selling Data: Significant short selling activity was noted, with ratios ranging from 3.615% to 27.161% across different companies, indicating varying levels of market skepticism.
Rating Changes: Several companies experienced changes in their ratings, with CG SERVICES upgraded from Underweight to Equalweight and SUNAC SERVICES downgraded from Equalweight to Underweight.
Target Price Adjustments: Target prices for several stocks were adjusted, with notable increases for CHINA RES MIXC and POLY PPT SER, reflecting positive market sentiment.
