(Yicai Global) Feb. 10 -- Full-year earnings at listed Chinese property management companies show that the sector is still enjoying high-speed growth, which has been driving up their share prices this year.

Since the middle of last month, 10 firms such as Sunac Services Holdings and A-Living Smart City Services have released preliminary results, with all of them expecting profits to have climbed more than 50 percent in 2020. Net profit at Sunac Services is expected to have more than doubled.

The high earnings growth was partly due to the delivery of many new projects, and the aggressive acquisition of peers that led to a significant increase in the total area of real estate under supervision. For example, the main reason for Sunac Services’ soaring profit was the substantial rise in the construction area under management and revenue from value-added community services, the Tianjin-based firm said.

Sunac Services is a subsidiary of major Chinese real estate developer Sunac China Holdings. Sunac China’s sales reached CNY575.2 billion last year, and it has delivered a large number of projects for its property unit.

In addition, net profit at KWG Living Group Holdings jumped at least 70 percent due to acquisitions that led to a significant increase in the area under its watch, including both residential and commercial projects, the Guangzhou-based firm said.

The total area under management in China is projected to rise to 31.1 billion square meters by 2024 from 23.9 billion sqm in 2019, according to the China Index Academy. The top 100 firms are expected to oversee an average 60 million sqm each by 2024.

Thanks to their strong earnings performances, many property management stocks have begun to soar since the beginning of the year. Shares of Evergrande Property Services Group [HKG: 6666] have almost doubled in value, while those of Sunac Services [HKG: 1516] have jumped 42 percent.

Over the past 12 months, industry leader Country Garden Services Holdings [HKG: 6098] has climbed about 110 percent. Its market capitalization is now nearing HKD200 billion (USD25.8 billion), which would not only surpass that of most listed real estate developers, but is also close to that of its parent Country Garden Holdings. Foshan-based Country Garden [HKG: 2007] has a market value of HKD205.2 billion (USD26.5 million).

Editors: Tang Shihua, Peter Thomas