Analyst Miao Zhang of CMB International Securities maintained a Buy rating on Greentown Service Group Co. Ltd., with a price target of HK$6.61.
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Miao Zhang has given his Buy rating due to a combination of factors that highlight Greentown Service Group Co. Ltd.’s strong financial performance and strategic initiatives. The company reported a significant increase in net profit and core operating profit for the first half of 2025, surpassing its full-year guidance. This growth was driven by a robust expansion in its core property management business, particularly in non-residential projects, and an improvement in project portfolio efficiency.
Additionally, Greentown Service Group’s efforts to enhance operational efficiency resulted in a notable reduction in selling, general, and administrative expenses, contributing to an increase in core operating profit margin. Despite challenges such as increased competition and fee caps, the company’s strategic focus on optimizing its project portfolio and increasing fee rates for new contracts has supported its margin outlook. These positive developments, along with the company’s unchanged guidance for fiscal year 2025, underpin Miao Zhang’s decision to maintain a Buy rating and raise the target price for the stock.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a HK$5.60 price target.