Poly Property Services Co Ltd (HKEX: 06049) shares rose more than 3%, with gains of 2.64% at the time of writing to reach HK$30.3, on a trading volume of HK$13.03 million.

Analysts have noted that as the property market in major mainland Chinese cities begins to stabilize, concerns over property management firms' exposure to real estate-related risks may gradually ease.

The company's parent, state-owned developer Poly Developments and Holdings Group, is positioned as a leading player to capture the return of housing demand. This is expected to reduce the downside risk to Poly Property Services' earnings while improving project delivery visibility and stabilizing demand for developer-related services.

However, it is anticipated that the stock's upside potential is more likely to stem from improvements in valuation support rather than an immediate, significant boost in profits.

The stock's projected dividend yield of 5.6% for the 2025 fiscal year is viewed as attractive compared to other covered property management stocks.

Poly Property Services is increasingly seen as a defensive, high-dividend stock that also possesses some potential for upside as risks diminish.