Goldman Sachs has issued a research report announcing a 5% reduction in the 12-month target price for Poly Property Services (06049), lowering it from HK$43 to HK$41. This adjustment is based on an unchanged 12 times the projected free cash flow for 2028. The firm maintained its "Buy" rating on the stock.

Goldman Sachs expressed optimism regarding the company's growth prospects, citing its strong expansion capabilities backed by its state-owned enterprise background. Poly Property Services reported fiscal year 2025 results that met expectations, with a net profit of RMB 1.55 billion, representing a 5% year-over-year increase. The performance was supported by property management service revenue that exceeded expectations, driven primarily by stable expansion in third-party projects and improvements in the project portfolio.

Management has set targets for this year and beyond, aiming for revenue and profit growth of no less than 5%. Several specific goals were outlined, including achieving annualized revenue from new third-party contracts exceeding RMB 3 billion, doubling residential third-party expansion year-over-year, focusing commercial services on state-owned assets and key clients, and maintaining operating cash flow consistently above net profit to support steady growth in absolute dividends.

In response, Goldman Sachs made minor adjustments to its revenue forecasts across various segments and lowered its net profit projections for 2026 to 2028 by an average of approximately 4%.