In this article, we introduce New Hope Services (新希望服务)(HKEX: 3658), a property management services provider under New Hope Group (新希望集团), one of China's largest agricultural companies.
Key Characteristics
Steadily growing revenue and profit
Track record shows a relatively high ROE and dividend yield
Negative exposure to some of the risks inherent in China’s real estate sector and competition in the country’s saturated property management services market
May be suitable for investors seeking a relatively high dividend income, moderate growth potential, and potential portfolio sector diversification
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Corporate History
What is now New Hope Services was originally founded in 2010 as Dingsheng Property Management (鼎晟物业) in Chengdu. Dingsheng Property Management was established as a subsidiary to conduct property management and other related services for mother company New Hope Real Estate (新希望地产), a subsidiary of New Hope Group (新希望集团), one of China's largest agricultural companies which specializes in animal feed, dairy and meat production. Dingsheng Property Management initially focused primarily on conducting business in Chengdu city and Sichuan province, where New Hope Group is based.
Starting in 2014, Dingsheng Property Management gradually expanded to other regions in China. In 2020, Dingsheng Property Management was renamed New Hope Services (新希望服务), and the company subsequently went public on the Hong Kong Stock Exchange (HKEX: 3658) in 2021.
Following the downturn in China's real estate sector, New Hope Real Estate has ceased developing new projects and did not acquire any new land in 2023. It is uncertain whether this is a temporary pause or if New Hope Real Estate will gradually wind down its business in the long run.
Business Summary
New Hope Services has four main operating segments:
Property Management Services
Lifestyle Services
Commercial Operational Services
Value-Added Services To Non-Property Owners
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