China’s ongoing real estate troubles have driven many investors away from property-related stocks. But even in a badly hit sector, there are always gems to be uncovered. Today, we spotlight one of them—Binjiang Service Group (SEHK: 3316).

Founded in 1995, Binjiang Service Group has grown into one of China’s leading property management firms. It listed on the Hong Kong Stock Exchange in 2019 and has since delivered a total return of 247%. While the real estate slowdown has cast a shadow over the sector, Binjiang’s business model and financials tell a different story.

The company likely took its name from Binjiang District in Hangzhou, where its parent company, Binjiang Real Estate, started its initial property projects.

As a native Hangzhou company, it’s no surprise that the bulk of Binjiang’s revenue comes from the city and Zhejiang Province. In the first six months of 2024, 71% of its total revenue was derived from Hangzhou alone.

When thinking about Chinese tech hubs, cities like Shenzhen or Beijing might come to mind. Yet Hangzhou has quietly become one of the country’s most important tech and innovation centers. It’s famously home to Alibaba and, more recently, the AI startup DeepSeek, which has gained widespread attention.

A city that fosters high-tech innovation naturally attracts talent and capital—both of which fuel demand for housing and property-related services.

Since 2010, Hangzhou’s population has surged from 8.7 million to 12.5 million in 2023, driven by its booming tech sector and reputation for high living standards. While many Chinese developers are struggling to sell units, Hangzhou’s robust local economy helps sustain housing demand, making it one of the more resilient property markets in China.

Against this backdrop, Binjiang Service Group has thrived by providing essential property management and value-added services. With DeepSeek’s rapid rise, Hangzhou could see an even greater influx of talent, further strengthening the demand for housing and premium property services.

Binjiang is well-positioned to benefit from this ongoing tech boom—not just as a property manager, but as a company deeply embedded in Hangzhou’s economic ecosystem.