Poly Development, a leading property service provider in China, recorded a 26% YoY increase in net profit in 2021, in line with its profit alerts. However, the company's reliance on public services may lead to margin decline and long cash collection periods in the future. The company's total revenue grew 34% YoY to RMB10.8bn in 2021, driven by its three pillar business segments. The company's gross margin remained flat at 18.7%. The stock is currently trading at HK$41.0, with a target price of HK$53.4. The stock is rated "Hold" with a target price of HK$53.4, with an upside of +30.2%.
