---
title: "HSBC Research raises the target price of GREENTOWN CHINA to 11.8 yuan and maintains a \"Hold\" rating"
description: "HSBC Research raised the target price for GREENTOWN CHINA to RMB 11.8, maintaining a \"Hold\" rating. Despite a 90% year-on-year decline in net profit in the first half of the year, the gross profit mar"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/254532463.md"
published_at: "2025-08-26T01:56:37.000Z"
---

# HSBC Research raises the target price of GREENTOWN CHINA to 11.8 yuan and maintains a "Hold" rating

> HSBC Research raised the target price for GREENTOWN CHINA to RMB 11.8, maintaining a "Hold" rating. Despite a 90% year-on-year decline in net profit in the first half of the year, the gross profit margin increased to 13.4%, the proportion of new projects rose, and financing costs decreased by 40 basis points to 3.6%. The bank believes that the stock price needs additional catalysts to rise further and has raised its gross profit margin forecasts for 2025 to 2027 by 0.3 to 0.5 percentage points, while lowering its earnings forecasts for 2025 and 2026 by 54% and 39%, respectively

HSBC Global Research report indicates that although GREENTOWN CHINA (03900.HK) saw a 90% year-on-year decline in net profit in the first half of the year, the bank still observed positive performance in its results, including a gross profit margin increase of 0.3 percentage points year-on-year to 13.4%, an increase in the proportion of new projects in the sellable resources for the second half of the year, and a 40 basis point year-on-year decrease in financing costs to 3.6%. However, the bank believes that investors have already anticipated these positive factors, and further upward movement in the stock price requires additional catalysts; maintaining a "Hold" rating.

The bank raised its gross profit margin forecast for 2025 to 2027 by 0.3 to 0.5 percentage points, while lowering its earnings forecasts for 2025 and 2026 by 54% and 39%, respectively, expecting earnings in 2026 and 2027 to grow by 70% and 33% from a low base; the target price was raised from HKD 11.5 to HKD 11.8. (ss/)

### Related Stocks

- [03900.HK - GREENTOWN CHINA](https://longbridge.com/en/quote/03900.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
