Greentown Service Group Co. Ltd. (2869) AI Stock Analysis

• Market Cap: HK$13.96B
• Dividend Yield: 3.38%
• Average Volume (3M): 3.58M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.27
• Revenue Growth: 1.01%
• EPS Growth: 12.45%
• Country: HK
• Employees: 48,423
• Sector: Real Estate
• Sector Strength: 58
• Industry: Real Estate - Services
• EPS (TTM): 0.23
• Shares Outstanding: 3,143,615,700
• 10 Day Avg. Volume: 4,474,311
• 30 Day Avg. Volume: 3,577,117
• PEG Ratio: -0.78
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$5.00
• Price Target Upside: 12.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$5.00 ▲(12.61%Upside)

Greentown Service Group's strong financial performance is the most significant factor, with solid revenue growth and efficient cash flow management. While technical indicators suggest positive momentum, the overbought RSI reading indicates caution. The stock’s fair valuation and dividend yield offer moderate appeal, contributing to a balanced overall score.

Positive Factors

Cost Control

Effective cost control and a quality-focused operational model have started to bear fruit, allowing the company to secure significant new contracts despite tough competition.

Operational Targets

Meeting operational targets should help to improve investor sentiment towards the stock, supporting its valuation and share price.

Reputation and Market Expansion

Greentown Service has built a strong reputation among property owners, enabling it to secure third-party projects in the public market.

Negative Factors

Labor Costs

Inability to control labor costs may pose earnings downside risk, which could affect the company's financial performance.

Receivables and Impairments

Solid cost control during FY24 overshadowed by higher-than-expected receivables and financial asset impairments.

Greentown Service Group Co. Ltd. Business Overview & Revenue Model

Company Description

Greentown Service Group Co. Ltd. (2869) is a leading provider of comprehensive property management services in China. The company operates in several sectors, including residential, commercial, and public infrastructure, offering a wide range of services such as property management, community value-added services, and consulting services. With a focus on delivering high-quality and customer-centric solutions, Greentown Service Group has established itself as a trusted brand in the property management industry.

How the Company Makes Money

Greentown Service Group Co. Ltd. generates revenue primarily through its property management services, which include managing residential communities, commercial buildings, and public infrastructure projects. The company earns a steady income through management fees charged to property owners and developers for maintaining and overseeing the day-to-day operations of their properties. Additionally, Greentown Service Group provides community value-added services, such as home maintenance, housekeeping, and landscaping, which contribute to its revenue streams. The company also engages in consulting services, offering expertise in property development and management strategies. Strategic partnerships with real estate developers and local governments play a significant role in expanding its service offerings and client base, further enhancing its revenue generation capabilities.

Greentown Service Group Co. Ltd. Financial Statement Overview

Summary

Greentown Service Group has demonstrated a solid financial performance with consistent revenue growth and strong profit margins. The company exhibits low leverage and a strong equity base, alongside efficient cash flow management. While the company is in a good position, focusing on managing liabilities and sustaining cash flow performance will be key to maintaining financial health.

Income Statement

Greentown Service Group has demonstrated a solid financial performance with consistent revenue growth and strong profit margins. The revenue growth rate from 2023 to 2024 is approximately 2.88%, showing steady expansion. Gross Profit Margin stands at 16.83%, while the Net Profit Margin is a healthy 4.39%. The company's EBIT Margin is 5.67% and EBITDA Margin is 7.83%, indicating efficient operations. Overall, the income statement reflects robust profitability and growth.

Balance Sheet

The balance sheet of Greentown Service Group exhibits a stable financial position with a Debt-to-Equity Ratio of 0.10, indicating low leverage. The Return on Equity (ROE) is 10.08%, showing effective use of equity to generate profits. The Equity Ratio is 44.01%, reflecting a strong capital structure. However, the company's total assets have slightly decreased, and careful management of liabilities is advisable to maintain this position.

Cash Flow

The company has shown strong cash flow generation capabilities with a Free Cash Flow growth rate of 23.53% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.88, and the Free Cash Flow to Net Income Ratio is 1.47, indicating that the company efficiently converts its income into cash. This strong cash flow position supports the company's operational and investment activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.89B	17.39B	14.86B	12.57B	10.11B
Gross Profit	3.01B	2.91B	2.40B	2.33B	1.92B
EBITDA	1.40B	1.54B	1.11B	1.23B	970.75M
Net Income	785.08M	605.37M	547.50M	846.27M	710.41M
Balance Sheet
Total Assets	17.69B	18.08B	16.85B	14.37B	13.08B
Cash, Cash Equivalents and Short-Term Investments	5.79B	5.69B	5.67B	5.93B	6.30B
Total Debt	803.52M	1.73B	1.85B	1.32B	1.37B
Total Liabilities	9.15B	9.86B	8.98B	7.00B	5.97B
Stockholders Equity	7.79B	7.41B	7.12B	7.02B	6.82B
Cash Flow
Free Cash Flow	1.15B	933.16M	241.48M	609.28M	968.42M
Operating Cash Flow	1.47B	1.44B	695.28M	1.02B	1.32B
Investing Cash Flow	-503.29M	-377.53M	-140.77M	-301.51M	-2.26B
Financing Cash Flow	-651.45M	-717.25M	-720.42M	-778.69M	2.98B

Greentown Service Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2869, the sentiment is Positive. The current price of 4.44 is above the 20-day moving average (MA) of 4.13, above the 50-day MA of 4.13, and above the 200-day MA of 3.86, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2869.

Greentown Service Group Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	79 Outperform	HK$18.12B	11.12	16.04%	32.32%	6.53%	4.78%
2669	76 Outperform	HK$17.83B	10.87		3.50%	―	―
3316	76 Outperform	HK$6.27B	10.52	36.29%	7.77%	25.93%	8.97%
2869	73 Outperform	HK$13.96B	18.32	8.94%	3.38%	1.01%	12.45%
6098	68 Neutral	$22.70B	11.53	4.96%	0.36%	1.31%	379.84%
6666	58 Neutral	HK$9.30B	8.40	2935.68%	―	0.27%	-35.07%
Sector *	53 Neutral	$1.21B	3.20	-0.13%	9.61%	-1.86%	-126.37%

Greentown Service Group Co. Ltd. Corporate Events

Greentown Service Group Announces Successful AGM with Unanimous Resolutions

Greentown Service Group Co. Ltd. held its Annual General Meeting on June 20, 2025, where all proposed resolutions were passed with overwhelming support. Key resolutions included the adoption of reports and accounts, the declaration of final and special dividends, the re-election of directors, and the reappointment of KPMG as the company’s auditor. This successful meeting underscores the company’s stable governance and shareholder confidence, potentially strengthening its position in the market.

The most recent analyst rating on (HK:2869) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Greentown Service Group Co. Ltd. stock, see the HK:2869 Stock Forecast page.

Greentown Service Group Grants 19 Million Share Options to Key Personnel

Greentown Service Group Co. Ltd. has announced the grant of 19,227,680 share options to its senior management and employees as part of its share option scheme. This move is aimed at incentivizing and retaining key personnel, with the share options exercisable over a 10-year period starting from June 2025. The vesting of these options is tied to performance targets, reflecting the company’s strategy to align employee interests with long-term business goals.

The most recent analyst rating on (HK:2869) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Greentown Service Group Co. Ltd. stock, see the HK:2869 Stock Forecast page.

Greentown Service Group Enhances Governance with New Appointment

Greentown Service Group Co. Ltd. has announced the appointment of Ms. JIN Keli, an executive director, to its Nomination Committee, effective May 28, 2025. This change, along with revisions to the committee’s terms of reference to align with the updated Corporate Governance Code, aims to enhance the company’s diversity policy and corporate governance practices.

The most recent analyst rating on (HK:2869) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Greentown Service Group Co. Ltd. stock, see the HK:2869 Stock Forecast page.

Greentown Service Group Announces Board Restructuring

Greentown Service Group Co. Ltd., a company incorporated in the Cayman Islands, has announced changes to its board of directors effective from May 28, 2025. The board comprises executive, non-executive, and independent non-executive directors, with Mr. YANG Zhangfa serving as Chairman. The company has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each. This restructuring is likely aimed at enhancing governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:2869) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Greentown Service Group Co. Ltd. stock, see the HK:2869 Stock Forecast page.

Greentown Service Group Enhances Nomination Committee Structure

Greentown Service Group Co. Ltd. has adopted new terms of reference for its Nomination Committee, emphasizing compliance with the Hong Kong Stock Exchange’s listing rules. The committee will consist of at least three members, primarily independent non-executive directors, and will focus on maintaining a diverse and skilled board to align with the company’s corporate strategy. This move is expected to enhance the company’s governance practices and ensure a balanced representation in its board structure.

The most recent analyst rating on (HK:2869) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Greentown Service Group Co. Ltd. stock, see the HK:2869 Stock Forecast page.

Greentown Service Group Announces Annual General Meeting and Key Resolutions

Greentown Service Group Co. Ltd. has announced its upcoming annual general meeting scheduled for June 20, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, declaration of final and special dividends, re-election of directors, and reappointment of KPMG as auditors. The meeting will also consider resolutions to authorize the board to allot and issue additional shares, which could impact the company’s capital structure and shareholder value.