A director at Greentown Service Group Co Ltd bought 3,500,000 shares at 5.642HKD and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the las...
GREENTOWN SERVICE (HK), a company active in the Real Estate Investment Trusts industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date February 11, 2022, the closing price was HKD 8.9...
PMCs’ share prices continue to be under pressure on policy woes and concerns over developers’ liquidity. The sector on average saw a 21% correction in the last month and valuations are at the 2018 trough level with dividend yields starting to look attractive coupled with high earnings growth. Maintain OVERWEIGHT on the sector as earnings were largely in line with expectations. Our top pick is CIFI Ever Sunshine for its high growth visibility and industry-leading third-party bidding capability.
Greentown reported PATMI yoy growth of 46% to Rmb546.7m. Gross margin declined 0.5ppt yoy to 20.1%, mainly due to rapid growth in the low-margin community retail sub-segment. Management affirmed that they are on track to achieving their 5-year growth target, while earnings should grow 25-30% in 2021. The company’s substantial reserved area offers high growth visibility while gross margin could expand in the mid term. Maintain BUY. Target price: HK$9.88.
KEY HIGHLIGHTS Results Air China (753 HK/BUY/HK$5.16/Target: HK$6.26) 1H21: Weak 1H21, but guidance for improved yields suggests worst could be over. Upgrade to BUY. Baoshan Iron & Steel (600019 CH/BUY/Rmb8.93/Target: Rmb12.00) 1H21: Record-high results in strong steel market; declares interim dividend. BYD Company (1211 HK/BUY/HK$261.40/Target: HK$400.00) 2Q21: Results missed estimates, but outlook beat expectations. Upgrade from HOLD to BUY, and raise target price from HK$250.00 to HK$400.0...
GREATER CHINA Results Baoshan Iron & Steel (600019 CH/BUY/Rmb8.93/Target: Rmb12.00): 1H21: Record-high results in strong steel market; declares interim dividend. BYD Company (1211 HK/BUY/HK$261.40/Target: HK$400.00): 2Q21: Results missed estimates, but outlook beat expectations. Upgrade from HOLD to BUY, and raise target price from HK$250.00 to HK$400.00. China Longyuan Power (916 HK/BUY/HK$16.26/Target: HK$18.45): 1H21: Strong results; better-than-expected wind resources. Greentown Service (286...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Market sentiment was dragged down by regulatory risks to the property sector and some concerns on increased competition in the property management sector. However, PMCs’ recent profit alerts show that earnings forecasts are conservative and PMCs are likely to maintain their mid-term growth targets. Sector valuations are now attractive and below the historical mean post the recent de-rating, and we recommend buying the dip. Maintain OVERWEIGHT.
Our positive outlook for the mid to long term remains unchanged. Sector valuation is not cheap at 28x forward PE; however it still suggests a 25% upside to the previous peak valuation. Profit alerts and strong results announcements would drive sector outperformance in the near term as they have done so in the past. Maintain OVERWEIGHT on the sector. Our top pick is S-Enjoy for its high growth visibility and improving third-party bidding capability.
The government’s recently-issued guidelines on the property management sector will encourage market consolidation in industry. Market share of Top 50 industry players has further edged up to 19.31% as of end-20. Top 10 industry leaders could see their market share double in the next five years. We remain upbeat on the sector as we head into the results season with short-term catalysts, such as profit alerts and inclusions into stock connect underway. Maintain OVERWEIGHT.
The MOHURD and other departments in the government issued a notice regarding strengthening and improving residential property management services in China. We expect favourable policies will support market consolidation, market-driven pricing of management fees and more growth opportunities in the community VAS segment. Maintain OVERWEIGHT.
Property owners have redefined the value of the property management industry following the COVID-19 outbreak. Portfolio diversification has enabled property management players to widen profit margins and diversify revenue streams. Two key forces driving management area growth are parent companies’ contributions and aggressiveness in M&A execution. M&As have fast-tracked management area growth for related companies and pushed up industry concentration. Maintain OVERWEIGHT.
Property owners have redefined the value of the property management industry following the COVID-19 outbreak. Portfolio diversification has enabled property management players to widen profit margins and diversify revenue streams. Two key forces driving management area growth are parent companies’ contributions and aggressiveness in M&A execution. M&As fast-track management area growth and accelerate industry consolidation. Maintain OVERWEIGHT.
Based on the 2019 results released by property management companies, more than 70% have achieved more than 30% yoy growth in revenue; some companies have even achieved growth of more than 100%. The Chinese property management market is entering a stage of high-speed growth with market size seeing rapid growth. Maintain OVERWEIGHT. Top pick: Ever Sunshine Lifestyle Services (1995 HK).
Greentown Service announced its 2019 results. Net profit of Rmb472.4m (1.4% yoy) was in line with our estimate. Three-year CAGR for managed area reached 24% yoy for 2017-19. The company has sped up expansion through aggressive acquisitions since its listing. But the weak growth rate of net profit slowed down earnings growth. Maintain HOLD with a new target price of HK$8.91. Entry price: HK$8.14.
EM Outperforming; Favor EM over EAFE With many global markets crumbling last week, one might assume that EM would have underperformed -- but that is not what transpired. What we saw was a decline in the US dollar which, along with improving coronavirus metrics in China, led to EM outperformance. Reiterating our 12/20/19 EM Strategy, we continue to believe EM is a better place to be than EAFE, supported by new highs in the EM vs. EAFE ratio and our ongoing belief that the US dollar is likely not...
Global Equities Dive, Testing Major Support Global equities have gone from extreme bullish sentiment and an extended market to panic and fear over coronavirus concerns. It is virtually impossible to predict what will happen regarding the virus or how much further markets could sell off as a result. Below we explain our outlook based on what we do know, which has been dampened but is not yet dire. • Indexes Testing Major Support. Major indexes are testing long-term base support and/or support...
Strong profit growth with potential widening of profit margins for financial year 2019 is expected. Cost savings achieved from economies of scale and technology adoption will be able to effectively reduce operational expenses and improve operational efficiency. Value-added services is expected to be the focus of the sector going forward, with greater upside potential and significantly higher profit margin. With share price currently trading at relatively high level, a more cautious approach woul...
We expect a hike in operating cost and a drop in value-added services contribution in the short term. In the medium to long term, the sector would still maintain its attractiveness as property owners realises the role and importance of property management in preserving property value. The potential growth in management fees, consistent collection rate, and the establishment of high-quality brands are conducive in increasing market concentration. Maintain OVERWEIGHT.
The property management industry is increasingly legislated in view of its growing market size. Property management companies’ earnings are highly visible volume growth due to flow through from completion areas. As the government will increase support for this industry, prospects for the property management sector will improve. Initiate coverage with an OVERWEIGHT rating. Our top pick is Ever Sunshine Lifestyle Service (1995 HK).
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