CICC: Maintain a outperform rating on Greentown Service Group (02869.HK) and raise the target price to 6 Hong Kong dollars.

According to the Intelligence Finance APP, CICC released a research report stating that it maintains its profit forecast for Green City Services (02869.HK) unchanged. It is expected that the core operating profit will increase by 15% year-on-year in both 2025 and 2026, reaching 1.83 billion yuan and 2.11 billion yuan respectively (if MAG's contribution is included in the 2024 base year, the growth rate in 2025 would be 21.5%); the net profit attributable to the parent company will increase by 17% year-on-year to 920 million yuan and 1.07 billion yuan respectively. The company's performance is expected to outperform the industry, with the target price raised by 8% to 6.0 Hong Kong dollars, corresponding to a 2025 target price-earnings ratio of 19 times and an 18% upside potential. The company's current trading is at a price-earnings ratio of 16.0 times in 2025, and a dividend yield of 4.4% estimated at a payout ratio of 70%.