---
title: "The report from \"Big Banks\" upgraded GREENTOWN SER's rating to \"Buy,\" with a slight decrease in the target price to 5.1 yuan"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280271687.md"
description: "HSBC Research has upgraded the rating of GREENTOWN SER to \"Buy,\" with a slight decrease in the target price to HKD 5.1. The company's profit grew by 12% last year, and the net operating cash flow exceeded net profit by 60%. Management expects the gross profit margin to increase by another 0.5 percentage points. Despite increased macro uncertainty, a dividend yield of about 7% remains attractive. The bank has lowered its revenue forecasts for this year and next by 4% and 6%, respectively, and has reduced its profit forecasts by 4% and 5%"
datetime: "2026-03-24T06:58:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280271687.md)
  - [en](https://longbridge.com/en/news/280271687.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280271687.md)
---

# The report from "Big Banks" upgraded GREENTOWN SER's rating to "Buy," with a slight decrease in the target price to 5.1 yuan

HSBC Research published a report indicating that Greentown Service (02869.HK) achieved a profit growth of 12% last year, in line with expectations. Surprisingly, the net operating cash flow exceeded net profit by 60%. Management expects the gross profit margin to increase by another 0.5 percentage points this year, following a 0.5 percentage point increase last year. These changes alleviate market concerns about cash flow recovery pressures. Meanwhile, amid increasing macro uncertainty, the bank believes that the group's approximately 7% dividend yield is attractive and has high visibility, especially since the stock price has corrected by about 20% since the fourth quarter of last year, offering better risk-reward.

Management has set a clear goal for the accounts receivable balance growth rate to be lower than the revenue growth rate by 2026, demonstrating a commitment to improving cash flow. Although the rising proportion of non-residential projects may slow down accounts receivable turnover, it is expected to bring more revenue growth amid a slowdown in the total construction area expansion of residential projects. In the accounts receivable structure, individual customers account for 54%, an increase of 3 percentage points year-on-year, indicating that there is still room to enhance customer satisfaction and accelerate property management fee collection.

The bank has lowered the group's revenue forecasts for this year and next by 4% and 6%, respectively, to reflect slower-than-expected total construction area expansion and value-added service growth. It has also reduced the gross profit margin forecast by 0.2 and 0.1 percentage points, leading to a 4% and 5% reduction in profit forecasts. The target price has been lowered from HKD 5.4 to HKD 5.1, with a target price-to-earnings ratio of 13.5 times; the rating has been upgraded from "Hold" to "Buy."

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