HK Stock Market Move | GREENTOWN SER(02869) rose more than 3%, with institutional forecasts predicting the company's profit to increase by up to 25% on a year-on-year basis in 2024. The cash flow is resilient.

GREENTOWN SER (02869) rose by more than 3%, reaching 3.51% by the time of publication, up to HKD 3.83, with a turnover of HKD 3.8123 million. CICC released a research report stating that it is expected that GREENTOWN SER's core operating profit will increase by 20% year-on-year in 2024 (gross profit minus sales and management expenses), and net profit attributable to shareholders will increase by 25% year-on-year, meeting market expectations and the company's annual targets. In terms of dividend payout, it is expected to be more positive compared to previous guidance. The bank believes that the company's performance growth comes from the steady development of its core business combined with overall operational efficiency. The report states that under macroeconomic pressure, the company's collection rate for the 2024 fiscal year is expected to remain relatively stable year-on-year, while the collection rate for past debts may fluctuate slightly. However, customer recognition of its brand quality is expected to drive up prepayment rates, supporting the company's operating cash flow to exceed 1 times the net profit attributable to shareholders for the whole year. In terms of expansion, the company continues its quality expansion strategy. The bank expects the new contract amount for 2024 to be around 4 billion yuan, focusing on core cities with higher prices compared to projects currently under management. In terms of project price increases, the company is expected to successfully achieve the target of a total increase of 100 million yuan for renewing projects that expire at the beginning of the year.