Poly Property Services Co., Ltd. Class H (6049) AI Stock Analysis

• Market Cap: HK$18.56B
• Dividend Yield: 4.34%
• Average Volume (3M): 866.30K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.20
• Revenue Growth: 6.54%
• EPS Growth: 3.26%
• Country: HK
• Employees: 30,125
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 1.79
• Shares Outstanding: 347,000,100
• 10 Day Avg. Volume: 541,338
• 30 Day Avg. Volume: 866,298
• PEG Ratio: 1.57
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 11.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$42.77
• Price Target Upside: 27.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$43.00 ▲(28.21% Upside)

Poly Property Services Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, supported by efficient cost management. The technical analysis indicates a strong upward trend, and the valuation is attractive with a reasonable P/E ratio and a solid dividend yield. These factors collectively contribute to a favorable stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and successful service offerings, supporting long-term business sustainability.

Operational Efficiency

Improved margins reflect efficient operations, enhancing profitability and providing a competitive edge in the property management sector.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk, providing stability and flexibility for future growth opportunities.

Negative Factors

Liability Increase

Increasing liabilities, though currently manageable, could pose future risks if not controlled, potentially impacting financial stability.

Lack of Recent Cash Flow Data

Without updated cash flow data, it's difficult to evaluate current liquidity and financial flexibility, which are crucial for ongoing operations.

Market Sentiment

While not a fundamental issue, persistent negative market sentiment could affect investor confidence and impact future capital raising efforts.

Poly Property Services Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Poly Property Services Co., Ltd. (Class H: 6049) is a leading property management and real estate services company based in China. The company primarily operates in the property development, management, and leasing sectors, offering a comprehensive range of services that include residential and commercial property management, facilities management, and property sales and leasing. With a strong focus on enhancing the living and working environments of its clients, Poly Property Services is committed to delivering high-quality services and innovative solutions in the real estate market.

How the Company Makes Money

Poly Property Services generates revenue through several key streams. The primary revenue source comes from property management fees, which are charged for managing residential and commercial properties. This includes maintenance, tenant services, and administrative support. Additionally, the company earns income from leasing activities, where it facilitates the rental of properties on behalf of owners and collects commissions on leases. Another significant revenue stream is derived from property sales, where Poly Property Services earns commissions and fees from the sale of residential and commercial properties. Strategic partnerships with real estate developers and other stakeholders in the property sector also enhance its revenue potential, as these collaborations often lead to exclusive management contracts and increased service offerings.

Poly Property Services Co., Ltd. Class H Financial Statement Overview

Summary

Poly Property Services Co., Ltd. showcases a robust financial performance with strong revenue and profit growth, supported by efficient cost management and operational efficiency. The balance sheet is stable with low leverage, indicating financial resilience. Cash flow generation has been consistent historically, though more recent data is needed for a comprehensive current assessment.

Income Statement

The company has demonstrated strong revenue growth over the years, with a 24.2% increase from 2020 to 2021 and a consistent upward trend into 2024. Gross profit margin improved, indicating effective cost management, and net profit margins are healthy. EBIT and EBITDA margins reflect robust operational efficiency. Overall, the income statement shows a solid performance with consistent profitability.

Balance Sheet

The balance sheet is strong, with a significant equity base and a low debt-to-equity ratio due to minimal debt levels. Return on equity remains positive, reflecting efficient use of equity capital. The equity ratio indicates a well-capitalized company, suggesting low financial risk. However, the slight increase in total liabilities over the years warrants monitoring.

Cash Flow

The company has displayed consistent free cash flow generation, indicating strong cash-generating ability. However, the absence of recent data for operating, investing, and financing cash flows poses a challenge in assessing current cash flow health. The historical trend shows positive operating cash flow relative to net income, but more recent data would provide a clearer picture.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.86B	16.34B	15.06B	13.69B	10.78B	8.04B
Gross Profit	3.00B	2.98B	2.95B	2.57B	2.01B	1.50B
EBITDA	1.99B	1.93B	2.23B	1.90B	1.50B	1.04B
Net Income	1.52B	1.47B	1.38B	1.11B	845.69M	673.52M
Balance Sheet
Total Assets	17.62B	16.78B	14.88B	13.11B	11.14B	9.44B
Cash, Cash Equivalents and Short-Term Investments	9.85B	9.89B	11.18B	9.11B	7.69B	7.45B
Total Debt	101.52M	105.65M	111.70M	107.22M	114.59M	238.12M
Total Liabilities	7.56B	6.91B	6.00B	5.26B	4.25B	3.20B
Stockholders Equity	9.87B	9.70B	8.72B	7.69B	6.79B	6.17B
Cash Flow
Free Cash Flow	1.58B	1.40B	2.34B	1.40B	1.37B	487.14M
Operating Cash Flow	1.68B	2.30B	2.42B	1.47B	1.45B	548.83M
Investing Cash Flow	-2.04B	-2.82B	56.29M	-97.84M	-858.30M	59.80M
Financing Cash Flow	-586.73M	-604.66M	-418.27M	-137.62M	-339.81M	302.33M

Poly Property Services Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6049, the sentiment is Negative. The current price of 33.54 is below the 20-day moving average (MA) of 34.40, below the 50-day MA of 34.68, and above the 200-day MA of 33.08, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 21.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6049.

Poly Property Services Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	78 Outperform	HK$18.56B	11.27	15.94%	4.34%	6.54%	3.26%
2869	70 Outperform	HK$14.25B	16.60	10.30%	2.88%	-0.95%	14.89%
2669	69 Neutral	HK$15.27B	9.17	30.27%	3.80%	―	―
6098	66 Neutral	HK$20.83B	14.04	3.72%	4.88%	7.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2602	58 Neutral	HK$22.09B	17.41	7.08%	1.74%	5.75%	-31.63%
6666	51 Neutral	HK$12.76B	11.79	185.17%	―	4.74%	-21.33%

Poly Property Services Co., Ltd. Class H Corporate Events

Poly Property Services Announces Auditor Change to Enhance Governance

Poly Property Services Co., Ltd., a company incorporated in China, has announced a change in its auditors to enhance corporate governance and audit efficiency. Baker Tilly China and Baker Tilly Hong Kong have resigned as auditors, and BDO China SHU LUN PAN Certified Public Accountants LLP and BDO Limited have been proposed as their replacements. This change is not expected to impact the company’s financial reporting for the year ending December 2025, and the formal appointment will be considered at an extraordinary general meeting.

Poly Property Services Announces Strategic Deposit Service Agreement with Poly Finance

Poly Property Services Co., Ltd. has announced a new 2026-2028 Deposit Service Framework Agreement with Poly Finance, effective from January 1, 2026, to December 31, 2028. This agreement, which caps the maximum daily balance of deposits at RMB2,030.0 million, is considered a continuing connected transaction under the Hong Kong Listing Rules. The agreement requires independent shareholders’ approval at an Extraordinary General Meeting (EGM) scheduled for December 30, 2025, with China Poly Group abstaining from voting due to its controlling interest. This strategic financial arrangement is expected to enhance the company’s operational efficiency and strengthen its industry positioning.

Poly Property Services Fails to Unlock Third Tranche of Restricted Shares

Poly Property Services Co., Ltd. announced that it did not meet the unlocking conditions for the third tranche of its Initial Grant under the Restricted Share Incentive Scheme due to unmet performance assessment indicators in 2024. Consequently, 1,604,732 shares, representing approximately 0.29% of the company’s total share capital, will not be unlocked and will be repurchased by the Trustee at the Grant Price. This decision, confirmed by the audit committee and independent non-executive directors, will not materially impact the company’s financial position or operating results.