| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.90 | 2619 |
| Intrinsic value (DCF) | 0.38 | -69 |
| Graham-Dodd Method | 0.50 | -59 |
| Graham Formula | 1.10 | -9 |
Evergrande Property Services Group Limited is a leading property management service provider in China, offering comprehensive property management and value-added services across diverse property portfolios. Headquartered in Guangzhou, the company manages mid-to-high-end residential properties, office buildings, commercial properties, theme parks, industrial parks, healthcare complexes, and educational institutions. Its core services include butler services, security, cleaning, greening, and repair and maintenance for residents, developers, and commercial tenants. The company also provides extensive value-added services such as pre-delivery property inspections, property transaction assistance, community operation services, group purchase activities, parking space leasing, real estate agency, and home renovation services. As a subsidiary of CEG Holdings (BVI) Limited, Evergrande Property Services leverages its established presence since 1997 to capitalize on China's growing property management sector, serving the expanding urban residential and commercial real estate markets with integrated property solutions.
Evergrande Property Services presents significant investment risks primarily due to its association with the troubled China Evergrande Group. While the company itself shows operational profitability with HKD 1.02 billion net income and positive operating cash flow of HKD 1.12 billion, its parent company's financial distress creates substantial contagion risk. The zero dividend policy reflects cash conservation needs, and the company's future is heavily dependent on the resolution of Evergrande's debt crisis. Despite maintaining a reasonable debt level of HKD 95 million against HKD 2.7 billion cash, the overarching parent company issues overshadow standalone financial metrics. Investors should approach with extreme caution given the structural risks within China's property sector and specific parent-subsidiary dependency issues.
Evergrande Property Services operates in a highly competitive Chinese property management market where scale, brand reputation, and service quality are critical differentiators. The company's competitive position is severely compromised by its association with the distressed China Evergrande Group, which has eroded client trust and growth prospects. While the company maintains operational capabilities across diverse property types including residential, commercial, and specialized properties, its competitive advantage has been significantly diminished by the parent company's crisis. The property management sector in China is increasingly dominated by independent players and developers with stronger financial backing. Evergrande Property Services' extensive service portfolio and nationwide presence provide some operational foundation, but these strengths are overshadowed by brand damage and uncertainty about long-term viability. The company's ability to attract new third-party contracts has likely been impaired, and existing clients may seek alternatives due to concerns about service continuity. Competitive positioning is further challenged by the industry trend toward technology-enabled property management solutions, where well-capitalized competitors are investing heavily.