HK Stock Market Move | GREENTOWN SER (02869) fell more than 4%, with institutions predicting that the company's new contract value last year will be lower than originally targeted.

GREENTOWN SER (02869) fell by more than 4%, reaching a decline of 4.66% to HK$3.68 by the time of publication, with a trading volume of HK$13.6419 million. Citi International released a research report pointing out that it is expected that GREENTOWN SER's new contract value last year will be lower than the original target, and the group will continue to adjust its strategy, focusing on core, sustainable and profitable value-added services (VAS) business. As a result, the bank lowered the group's 2024 revenue forecast by 3.7% to RMB 18.6 billion, implying an annual growth of 7.1%. Citi International stated that GREENTOWN SER's efficiency continues to improve, and it is expected that the group's gross profit margin in 2024 will increase by 0.3 percentage points to 17.1%, while sales and administrative expenses as a percentage of revenue will decrease by 0.5 percentage points. The bank estimates that the group's core net profit will increase by 9.6% annually to RMB 835 million. The bank stated that considering the group's efficiency improvement, strong competitiveness in the residential sector, cooperation with large state-owned enterprises, and stable cash flow, it gives the company a "buy" rating, although the target price has been lowered from HK$4.36 to HK$4.29.