HSBC Global Research said both Greentown Service (02869) and Ever Sunshine (01995) have conducted a share placement at a discount of 7% to last closing price this week.
It is the second wave of placements after CG Services (06098) issued a convertible bond at end-April.
As the market valuation has reached a high level at 34x/27x FY2020/21 PE, property management companies are performing pre-emptive placements that they may not have specific acquisition targets in hand and both of them are in net cash position.
HSBC is cautious in the near term as multiple placements signal that the market may take a breather. It anticipates more profit-taking in conjunction with occasional ripples from trade tensions.
But HSBC maintained its constructive view on the fundamentals of the sector, given decent expected earnings growth (26% FY2019-21 PE) and the potential positive impact from a number of quality PM companies to list in the rest of this year.
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