Bank of China International: "Buy" rating for GREENTOWN SER (02869) with target price lowered to 4.29 Hong Kong dollars.

The report released by CINDA International stated that considering the efficiency improvement of GREENTOWN SER (02869), its strong competitiveness in the residential sector, cooperation with large state-owned enterprises, and stable cash flow, the company is given a "buy" rating. However, the target price has been reduced from 4.36 Hong Kong dollars to 4.29 Hong Kong dollars. The bank predicts that the value of new contracts for GREENTOWN SER last year will be lower than the original target. The group will continue to adjust its strategy, focusing on core, sustainable, and profitable Value-Added Services (VAS) business. Therefore, the bank has lowered the group's 2024 revenue forecast by 3.7% to 18.6 billion RMB, implying a year-on-year growth of 7.1%. CINDA International stated that GREENTOWN SER's efficiency continues to improve, with the group's gross profit margin expected to increase by 0.3 percentage points to 17.1% in 2024. 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% year-on-year to 835 million RMB.