According to the research report published by Haitong international, the net profit of Zhengrong service increased by 94.6% in 2018, which was better than the average growth rate of 26% of China’s top 100 property management companies. The company has achieved 166% net profit growth in 2019, which is also higher than 128% of the average level of listed peers. Haitong international points out that as of December 31, 2019, the area under management of the company has reached 22.9 million square meters, and the contract area has reached 37 million square meters. Through deepening the cooperation with Zhengrong real estate and the third-party developers, Zhengrong service has the ability to further expand the scale of project management, which is conducive to the rapid growth of revenue and profit of the company. < p > < p > Haitong International believes that the current revenue and profit base of Zhengrong service is still low. However, due to the rapid growth of the area under management of the company in the past few years, it is believed that the company will achieve a higher profit growth rate than its peers in the next few years. Haitong international forecasts that Zhengrong’s revenue compound growth rate will reach 56% in 2020-2022, which is higher than the average level of 37% expected by the media industry; the compound growth rate of core profit in 2020-2022 is 61%, higher than the average level of 39% expected by the media industry. < / P > < p > at present, the current valuation of the property management industry corresponds to a P / E ratio of 25 times in 2021. Considering the business scale of Zhengrong service, diversified property portfolio and rapid income growth, Haitong International gives the company a target price of HK $8.34 based on the 25 times of 2021 P / E ratio, and is awarded the rating of “outperforming the market” for the first time.