A research report from CITIC Securities highlights the existence of internal competition within the property services industry, where some property owners make unjustified demands to lower property fees. Nevertheless, the leading companies in this sector hold a relatively small market share, offering ample opportunities for portfolio realignment of managed projects. Critically, their profitability remains resilient against internal competition. Government policies aim to discourage such internal competition and promote high-quality services at premium prices. This regulatory stance contributes to stabilizing collection rates, fee structures, and profitability for enterprises, particularly benefiting those companies that prioritize service reputation. Consequently, we maintain a positive outlook on property service enterprises that demonstrate strong brand competitiveness.
